Market announcement

Title

Coop Pank AS results for July 2023

Message

Coop Pank's financial results in July 2023:

  * In July, number of the bank's clients increased by 2,600 and number of
    active clients increased by 1,200. By the end of the month number of clients
    reached 169,900 and number of active clients reached 77,400. Over the year,
    customer base has grown by 28%.
  * Volume of the bank's customer deposits increased by 22 million euros,
    reaching 1.78 billion euros by the end of month. Deposits of corporate
    customers increased by 39 million euros and deposits of private customers
    increased by 1 million euros. The volume of deposits attracted from
    international platforms decreased by 18 million euros. Over the year, volume
    of bank deposits has grown by 37%.
  * The bank's loan portfolio increased by 25 million euros over the month and
    reached 1.48 billion euros by the end of July. Business loans increased by
    15 million euros, home loans increased by 9 million euros, leasing by 1
    million euros, consumer financing loan portfolio remained at the same level
    in July compared to June. Over the year, loan portfolio has grown by 27%.
  * In July, the loan impairment cost was 0.8 million euros.
  * Compared to the first seven month of last year, the bank's net income has
    increased by 73% and expenses by 26% during the same period this year.
  * In July, the bank earned net profit of 3.4 million euros. In the first seven
    months of the year, the bank has earned a net profit of 23 million euros,
    that is 131% more than in the same period last year.
  * In July, Coop Pank's return on equity was 23.5% and the cost-income ratio
    was 39%.

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

"Sice July, all Coop Pank customers can make contactless payments with their
smartphones at all vendors - this innovation supports, among other things, the
increase in the share of our active customers.

In July, we saw a general slowdown in inflation and in the price growth of food
and durable goods in Estonia. Although euribor remains high, households that
have kept their jobs are doing well in managing their income and expenses. This
is also reflected in our home loan and leasing portfolio, which showed solid
growth in July. Business loans portfolio also grew strongly in July.

In addition to consumption and investments, both households and companies
continue to have resources for deposits. The current good interest environment
motivates to find the best return on money, and that is why a part of demand
deposits is moving to term deposits, which also gives banks better opportunities
for capital management in the long term.

The continued growth of our business volumes and keeping costs under control
resulted in a net profit of 3.4 million euros in July. Coop Pank's return on
equity in July was 23.5% and the cost-income ratio was 39%."

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 169,900. 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])