Coop Pank AS results for November 2023

Coop Pank’s financial results in November 2023:

• In November, number of the bank's clients increased by 2,600 and number of active clients increased by 1,400. By the end of the month number of clients reached 180,300 and number of active clients reached 80,800. Over the year, customer base has grown by 25%.
• Volume of the bank's customer deposits increased by 18 million euros, reaching 1.78 billion euros by the end of month. Deposits of corporate customers increased by 3 million euros and deposits of private customers increased by 5 million euros. The volume of deposits attracted from international platforms increased by 10 million euros. Over the year, volume of bank deposits has grown by 22%.
• The bank's loan portfolio remained at the same level in November as it was in October and reached 1.50 billion euros by the end of November. Business loans decreased by 8 million euros, home loans increased by 5 million euros, leasing increased by 3 million euros and consumer financing loan portfolio remained at the same level in November as it was in October. Over the year, loan portfolio has grown by 19%.
• In November, the loan impairment cost was 0.2 million euros.     
• Compared to the first eleven months of last year, the bank's net income has increased by 63% and expenses by 29% during the same period this year.
• In November, the bank earned net profit of 3.4 million euros. In the first eleven months of the year, the bank has earned a net profit of 38 million euros, that is 105% more than in the same period last year.   
• In November, Coop Pank's return on equity was 22.3% and the cost-income ratio was 45%.
  
  

Comment by Paavo Truu, Member of the Management Board and CFO of Coop Pank:

"In November, Coop Pank's deposit portfolio showed again decent growth, increasing by 18 million euros in month and 22% in year. We can see that interest rates on deposits have reached their peak and interest rates on long-term deposits are already in a downward trend. In the money markets in general, we can also see a decrease in the price of various interest rates and securities, because the market is waiting for the European Central Bank to start lowering its interest rates to revive the economy.

As a result, the euribor has finally reversed its downward trend, which benefits both private and corporate loan holders. In November, home loan and leasing portfolios increased at the fastest pace, but due to repayments of business loans, the loan portfolio remained at the same level as it was last month. Repayments of real estate development loans are a common trend at the end of the year, which this year has been amplified by the VAT increase that will be implemented from next year. This motivates home seekers to buy
homes in new developments this year, so as not to pay a 2% higher price next year. As several residential developments are being completed in succession and sales of apartments are going well, it also enables developers to repay loans. Over the year, the bank's loan portfolio has increasing by 19% and the quality of the portfolio remains good.

In November, Coop Pank earned a net profit of 3.4 million euros, the return on equity was 22.3% and the cost-income ratio was 45%."

More detailed financial reports of Coop Pank are available at:  https://www.cooppank.ee/en/financial-reports

Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The number of clients using Coop Pank for their daily banking reached 180,300. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti, comprising of 320 stores.

Additional information:
Paavo Truu
CFO
Phone: +372 5160 231

E-mail: paavo.truu@cooppank.ee

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• Coop Pank 2023-11_EN