LHV Institutional Baltic Insight, May 12th, 2021
* Coop Pank (CPA1T ET) maintained a decent growth in its lending and deposit volumes in April 2021 and continued to report relatively small loan impairment losses, suggesting stable loan quality and resulting in respectable monthly profitability levels. The growth of CPA’s domestic deposit base consistently exceeds the expansion of its lending volumes, enabling the Group to reduce the volume of deposits attracted from the Raisin platform as planned in the coming quarters.* On the negative side, the changes in the Group’s loan portfolio structure, stiffer competition in the lending market, and CPA’s involvement in larger projects are pushing the net interest margin (‘NIM’) lower a bit faster than anticipated. Nevertheless, so far, CPA has successfully implemented its growth strategy and capitalised on the growing awareness of the ‘COOP’ brand, quick decision-making processes, and new product offerings.
* As Estonia has started to exit from the second round of strict lockdown measures imposed from 11th March, also advancing with the vaccination process, the economic outlook for H2 2021 is improving. 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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