LHV Institutional Baltic Insight, February 12th, 2020
* Coop Pank (CPA1T ET, ‘CPA’) continued to rapidly expand its operating volumes during the last quarter of 2019, reporting revenues and profits broadly in line with our projections.* The ambitious growth strategy presumes somewhat elevated cost levels in the medium term to achieve sufficient volumes and exploit economies of scale. Therefore, ROE is anticipated to remain relatively low in 2020. Nevertheless, in our view, CPA should be considered as an attractive growth story with its unique symbiosis and potential synergies between banking and retail trade. Being a relatively small domestic bank, flexibility in decisions, quick product developments, and integration of third parties with its digital platform are also important advantages. Our fair value range for Coop Pank is EUR 1.40-1.50
* Please also refer to the tables in the attachment.
LHV Bank is an independent pan-Baltic bank, based on Estonian capital. The company was founded in 1999 by two founders of Hansapank (today’s Swedbank in the Baltics) and has been offering a full range of investment services for 15 years. In May 2009, LHV received a credit institution licence allowing it to provide all banking services.
The head office is situated in Tallinn, Estonia. Cross-border services are offered in Vilnius, Lithuania and in Riga, Latvia. LHV provides brokerage (institutional and retail), asset management, banking and capital markets services. Compared to other banks, we are more innovative and have more solid experience in investment and entrepreneurship.
The Bank, together with the Group asset management company employs over 320 people. LHV Group shares are listed on Nasdaq Tallinn.
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