LHV Institutional Baltic Insight, October 20th, 2021
* Coop Pank (‘CPA’ or the ‘Group’) recorded expectedly strong results for Q3 2021, keeping solid expansion rates of its loan portfolio and domestic deposits while continuing to grow operating revenues ahead of operating expenses, thus further improving its underlying profitability. However, taking into account the preliminary monthly figures for July-August published earlier, we noticed that the loan growth slowed in September compared to the previous months, somewhat lagging behind our predictions, while the latest monthly deposit growth was stronger than expected, driven by additional deposits collected from the Raisin platform.* All in all, we consider CPA’s Q3 2021 growth and profitability figures as neutral. While we are glad to see a continuous expansion of CPA’s domestic deposit base and loan portfolio, along with improving efficiency ratios, we remain somewhat concerned regarding the downward pressure on interest margins and sustainability of its asset quality.
* 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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