LHV Institutional Baltic Insight, April 21st, 2021
* Coop Pank (CPA1T ET) maintained strong growth of domestic deposit volumes during Q1 2021 while also attracting additional funds from the Raisin platform, ahead of the planned repayments of term deposits collected from Raisin at higher earlier rates. However, the corporate lending market in Estonia was relatively sluggish in the last quarter, and stiff competition from larger banks makes it harder for CPA to expand this segment.* On the other hand, the Group continued to increase its retail mortgage portfolio, while it also registered an improvement in its loan quality in terms of overdue amounts in comparison with the previous quarter, despite the recent high COVID-19 infection rates and new stricter lockdown measures imposed from 11th March. As predicted, rising operating volumes are giving a further boost to CPA’s net interest income, leading to total operating income growing ahead of operating expenses y-o-y.
* In sum, CPA reported Q1 2021 core income and operating profit figures broadly in line with our estimates, with net profits nearly doubling y-o-y to EUR 2.8m. 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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