LHV Institutional Baltic Insight, October 21st, 2020
* Coop Pank (‘CPA’ or the ‘Group’) continued to strongly expand its operating volumes during Q3 2020, as predicted, giving a further boost to its net interest income, which is growing well ahead of operating expenses. In sum, CPA reported Q3 2020 core income and operating profit figures in line with our estimates, while smaller than anticipated loan impairments enabled it to post stronger net profits for the quarter, exceeding EUR 2m. Please also refer to the tables in the attachment.* CPA attracted a decent number of new customers and increased lending volumes across all business segments. The management claims that the direct impact of the coronavirus pandemic on the loan quality has remained more modest than initially estimated in spring this year and the Group saw no reason to further increase special provisions at this stage. Nevertheless, we keep our cautious stance regarding the outlook for the coming quarters, as the Estonian economy is about to record a significant setback in 2020, reflecting problems in many economic sectors.
* Novaturas AB (hereafter referred to as ‘Novaturas’ or the ‘Company’) has been one of the hardest-hit Baltic companies due to the coronavirus crisis. Last week, the Company reported its September and preliminary nine-month 2020 turnover of EUR 1.5m (-93% y-o-y) and EUR 30.3m (-78% y-o-y), respectively. The number of clients plunged to 2.7k (-93% y-o-y) in September 2020. Please also refer to the charts and table in the attachment.
Novaturas AB is a Lithuania-based company, which is engaged in the provision of travel services in the Baltic countries. The Company operates through three divisions: All Inclusive vacation packages around all time year; Sightseeing tour by coach and plane to approximately 30 destinations across the world, as well as ski trips. It also offers airline tickets and hotel accommodations. It sells tours through travel agencies and its Website.
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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