Market announcement

Title

Coop Pank AS results for October 2023

Message

Coop Pank's financial results in October 2023:

  * In October, number of the bank's clients increased by 2,500 and number of
    active clients increased by 2,000. By the end of the month number of clients
    reached 177,700 and number of active clients reached 79,400. Over the year,
    customer base has grown by 25%.
  * Volume of the bank's customer deposits increased by 57 million euros,
    reaching 1.76 billion euros by the end of month. Deposits of corporate
    customers increased by 44 million euros and deposits of private customers
    increased by 3 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 27%.
  * The bank's loan portfolio increased by 15 million euros over the month and
    reached 1.50 billion euros by the end of October. Business loans increased
    by 8 million euros, home loans increased by 6 million euros, leasing by 1
    million euros, consumer financing loan portfolio remained at the same level
    in October compared September. Over the year, loan portfolio has grown by
    22%.
  * In October, the loan impairment cost was 0.3 million euros.
  * Compared to the first ten month of last year, the bank's net income has
    increased by 67% and expenses by 28% during the same period this year.
  * In October, the bank earned net profit of 3.6 million euros. In the first
    ten months of the year, the bank has earned a net profit of 34 million
    euros, that is 113% more than in the same period last year.
  * In October, Coop Pank's return on equity was 23.7% and the cost-income ratio
    was 43%.

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

"In October, we saw a good growth of both the deposits and the loan portfolio,
which means that although the economy is going through a cooling phase, the
activity of customers in the market has remained at the good level and they are
looking for a good return on their free money, and there are also those who make
investment decisions. At the same time, the loan portfolios also remain of high
quality.

Since the general cooling of the economy and taming of inflation can be seen
across Europe, it can be assumed that interest rates have now reached their peak
and this is positive news for borrowers. At the same time, the peak of interest
rates on deposits is also reached, and depositors now have the last chance to
take advantage of the good offers available before the interest rates reverse
their downward trend.

The halt in the rise of interest rates is expected to give a positive boost to
the confidence of entrepreneurs and consumers, and we will start to see a step-
by-step increase in investment courage in the coming quarters. As a domestic
bank, Coop Pank is always ready to contribute to the business plans of local
entrepreneurs and to finance projects that advance life in Estonia.

In October, Coop Pank kept operational costs under control and increased
business volumes, which resulted in a net profit of 3.6 million euros. Coop
Pank's return on equity was 23.7% in October, and the cost-income ratio was
43%."

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 177,700. 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 (mailto:paavo.truu@cooppank.ee)