LHV Institutional Baltic Insight, July 21st, 2020
* Despite the coronavirus outbreak and deteriorating economic conditions in Estonia, Coop Pank (‘CPA’ or the ‘Group’) continued to strongly expand its operating volumes throughout Q2 2020, further improving its underlying profitability, while loan impairments remained relatively modest so far. Overall, Q2 2020 results came in broadly in line with our predictions in terms of core income and operating profit numbers, but smaller than anticipated loan provisions enabled to earn net profits ahead of our estimates.* Nevertheless, we remain cautious regarding the outlook for the coming quarters as the Estonian economy is approaching a recession, and a substantial portion of CPA’s loan portfolio is given principal payment holidays.
* Similar to Q1 2020, CPA succeeded to increase its revenues well ahead of its costs during Q2 2020, leading to solid growth in operating profits compared to both Q2 2019 and Q1 2020. The Group attracted a decent number of new customers and increased lending volumes across all business segments. 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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