Market announcement

Title

Coop Pank AS results for May 2023

Message

Coop Pank's financial results in May 2023:

  * In May, number of the bank's clients increased by 2,800 and number of active
    clients increased by 800. By the end of the month number of clients reached
    160,400 and number of active clients reached 71,800. Over the year, customer
    base has grown by 25%.
  * Volume of the bank's customer deposits increased by 61 million euros,
    reaching 1.58 billion euros by the end of month. Deposits of corporate
    customers increased by 48 million euros and deposits of private customers
    increased by 0.3 million euros. The volume of deposits attracted from
    international platforms increased by 13 million euros. Over the year, volume
    of bank deposits has grown by 32%.
  * The bank's loan portfolio increased by 41 million euros over the month and
    reached 1.40 billion euros by the end of May. Business loans increased by
    20 million euros, home loans increased by 15 million euros, leasing by 3
    million euros, consumer financing by 3 million euros. Over the year, loan
    portfolio has grown by 27%.
  * In May, the loan impairment cost was 1.2 million euros.
  * Compared to the first five month of last year, the bank's net income has
    increased by 73% and expenses by 25% during the same period this year.
  * In May, the bank earned net profit of 3.3 million euros. In the first five
    months of the year, the bank has earned a net profit of 16 million euros,
    that is 138% more than in the same period last year.
  * In May, Coop Pank's return on equity was 24.2% and the cost-income ratio was
    37%.

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

"In May, domestic Coop Pank transferred a total of 4.6 million euros in
dividends to the bank accounts of its 36,500 shareholders. Over 98% of it went
to Estonian people and companies. This year, the bank paid a dividend of 4.5
cents per share, which is 50% more than a year ago.

On the banking market, the main keyword in May was term deposits, which all
banks have been competing strongly for over the last 12 months. This has raised
interest rates on term deposits to record levels of the last decade, which
primarily benefits domestic businesses and households, who are increasingly
motivated to place their current account balances in term deposits. As a result,
the share of term deposits is growing strongly in the entire banking sector, and
so in Coop Pank. Thanks to the attractive interest offers for term and demand
deposits, Coop Pank's deposits grew to a total of nearly 61 million euros in
May.

At the same time, Coop Pank's loan portfolio grew by more than 41 million euros.
If at the beginning of the year we saw somewhat more modest interest in home
loans than before, now the demand has recovered, and the volume of loans issued
is at a very good level. The quality of the entire loan portfolio of Coop Pank
remains very good, but at the same time, customer questions about payment
holidays have also somewhat increased.

Coop Pank's net profit in May was 3.3 million euros, the return on equity was
24.2% and the cost-income ratio was 37%."

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 160,400. 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: [email protected] (mailto:[email protected])