Market announcement

Title

Unaudited financial results of Coop Pank for Q4 and 12 months of 2025

Message

In  2025, Coop  Pank  continued  to  implement  its growth strategy and achieved
strong  growth in both  its customer base  and loan portfolio. Overall, interest
rates  declined in 2025 and subsequently stabilized,  which was reflected in the
lending  market and  improved confidence  among both  businesses and households.
This  had a positive  impact on Coop  Pank's results as  well as on the Estonian
banking landscape as a whole.

Over  the year, the number of Coop  Pank customers increased by 19,000 (+9%) and
the  number of active customers increased  by 9,000 (+9%). Of the new customers,
16,000 were  private customers and 3,000 were business  customers. By the end of
2025, the  number of Coop Pank  customers reached 227,000, of which 108,000 were
active customers.

By  the end of 2025, deposits of Coop Pank reached 2.05 billion euros, increased
by 170 million euros (+9%) over the year. Term deposits increased by 8% over the
year  and demand deposits  by 11%. The bank's  financing cost decreased over the
year from the level of 3.3% to the level of 2.4%. The market share of the bank's
deposits increased from 6.0% to 6,1% over the year.

By  the end  of 2025, loan  portfolio of  Coop Pank  reached 2.11 billion euros,
increased  by 340 million  euros (+19%)  over the  year. Business loans and home
loans  made  the  biggest  contribution  to  portfolio  growth.  Business  loans
portfolio  increased  by  207 million  euros  (+27%)  and  home  loan  portfolio
increased  by 125 million euros (+17%).  Consumer finance portfolio increased by
6 million  euro (+5%) and leasing portfolio  increased by 3 million euros (+2%).
The market share of the bank's loans increased from 6.5% to 7.1% over the year.

In 2025, the quality of the loan portfolio remained very good, despite of the
changes in the economic environment. To cover possible loan losses, 3.3 million
euros provisions were made in 2025 - that was 29% less than a year earlier. The
cost ratio for credit risk decreased from 0.3% to 0.2%.

The net income of Coop Pank reached 79.4 million euros, decreased by 2.5 million
euros (-3%) over the year. Net interest income decreased 4.3 million euros (-
6%) over the year. Net service fee revenues increased 0.2 million euros (+4%)
over the year. The bank's operating cost reached 41.5 million euros, increased
by 0.9 million euros (+2%) over the year. Personnel, IT and marketing costs
continued to make up the largest part of operating costs.

Net profit of Coop Pank in 2025 was 28.7 million euros, decreased by 11% over
the year. The bank's cost / income ratio increased from 50% to 52% over the year
and the return on equity decreased from the level from 16.2% to 12.9%.

As of 31 December 2025, Coop Pank has 32,800 shareholders.

Results in Q4

In  Q4 2025, the  number of  the bank's  customers increased  by 5,000 (+2%), of
which 4,000 were private customers and 1000 were corporate customers. By the end
of the year, Coop Pank had 227,000 daily banking customers.

In  Q4 2025, the  volume of  deposits increased  by 134 million  euros (+7%) and
reached  2.05 billion euros by the end of the year. Over the quarter, the volume
of demand deposits decreased by 12 million euros and the volume of term deposits
increased by 146 million euros.

The  bank's  net  loan  portfolio  increased  by 91 million euros (+4%) over the
quarter,  reaching 2.11 billion  euros by  the end  of the  year. The  volume of
corporate  loans  increased  by  55 million  euros  and the volume of home loans
increased  by 33 million euros. Consumer  financing increased by 1 million euros
and leasing by 2 million euros.

In  Q4 2025, Coop Pank  earned a profit  of 7.2 million euros,  which is 3% more
than in Q3 and 12% more than in the same period last year.

Comments of the CEO of Coop Pank Arko Kurtmann:

"Coop  Pank follows a  growth strategy, and  in line with  this, we continued to
grow  both our customer base and loan portfolio in 2025. At the heart of all our
activities  is the customer, and our competitive advantage lies in offering more
convenient  and faster services. We can only grow if we do something better than
our competitors.

The  number  of  Coop  Pank  customers  grew  by  19,000 (+9%) in 2025, reaching
227,000 by  the end of the year. Increasingly, opening an account is followed by
switching  to Coop Pank as the customer's  main bank for daily banking services.
However,  growing the number of  so-called home bank clients  is also one of our
biggest forward-looking challenges. Switching one's main bank is what drives the
growth of demand deposits and enables us to reduce the cost of funding.

The  bank's loan portfolio  grew by EUR340  million (+19%) in  2025. For the first
time  in Coop Pank's history,  our loan portfolio exceeded  EUR2 billion. The loan
portfolio's  quality  remained  at  a  low-risk  level  throughout the year. The
business  loan portfolio  grew the  fastest, increasing  by EUR207 million (+27%).
This  was followed by growth in the  home loan portfolio by EUR125 million (+17%).
Growth  in consumer loans  and leasing was  moderate. Overall, both business and
private  customer demand  for loans  remained strong  throughout the  year. This
robust loan demand was also one of the signs of economic revitalization for us.

Coop  Pank's net  profit amounted  to EUR28.7  million in 2025, decreasing by 11%
year-on-year. The decline in net profit compared to the previous year was mainly
caused  by  the  lower-interest  economic  environment,  which the 19% growth in
business  volumes could not  offset. While we  anticipated net profit decline in
2024 and 2025, our goal is to return to net profit growth in 2026.

Below is an overview of the most important developments at Coop Pank in 2025:

The bank followed its existing dividend policy and fulfilled the promise made to
shareholders  by  distributing  25% of  its  2024 pre-tax  profit  as dividends,
amounting to over EUR7.2 million.

For  the first time, the bank issued  covered bonds on the Irish stock exchange,
totalling  EUR250 million with a four-year maturity. This marked the first tranche
of a EUR750 million covered bond programme.

At  the end of  the year, the  European Investment Bank  provided Coop Pank with
capital  relief, enabling the bank  to issue up to  EUR249 million in new loans to
businesses.

Additionally,  the bank signed a loan agreement at  the end of the year with the
European  Energy  Efficiency  Fund  (EEEF),  under  which Coop Pank will take an
unsecured subordinated loan of EUR5 million at an interest rate of 6-month Euribor
plus 3.25% per annum.

In 2025, the credit rating agency Moody's affirmed Coop Pank's deposit rating at
Baa2  with  a  positive  outlook.  This  confirms  that the bank continues to be
reliable,  with strong  profitability, solid  capitalization, and a high-quality
credit portfolio.

The  bank implemented several product enhancements to make using a domestic bank
even  more affordable, flexible, and convenient  for customers. For example, the
bank   introduced  a  virtual  card,  a  group  account  solution,  and  enabled
entrepreneurs  to accept payments conveniently using an Android smart device. In
addition,  Coop Pank elevated its cooperation with Coop retail to a new level by
introducing a unique purchase reward for joint customers. In 2025, the bank paid
out over EUR270,000 in purchase rewards to its customers.

Alongside  the development of  e-services, the bank  also invested in increasing
face-to-face  interaction opportunities  by opening  a branch  in the  centre of
Valga.  A larger and more  modern branch was also  opened in Viljandi. Coop Pank
operates  a total of 16 branches across 13 cities in Estonia and has the largest
cash network in the country.

Among  new loan products, the  bank launched a small  business loan for aspiring
entrepreneurs and the Home Defender Home Loan. In addition, the bank lowered the
interest rate of its popular Teacher's Home Loan.

In  the second  quarter of  2025, Margus Rink  stepped down  as Chairman  of the
Management  Board, and the Supervisory Board  appointed Arko Kurtmann as the new
Chairman   of  the  Management  Board.  Following  Kurtmann's  appointment,  the
Supervisory  Board named  Lehar Kütt  as the  new Head  of Business  Banking and
member  of  the  Management  Board.  As  of  1 February  2026, the  bank's Chief
Information Officer, Alvar Pihlapuu, also joined the Management Board.

Awards and recognitions received by the bank in 2025:

  * The Teacher's Home Loan received a special prize for inventive communication
    from the Estonian Public Relations Association (EPRA) and won a Kuldmuna
    (Golden Egg) in corporate communications from the Estonian Marketing
    Association (TULI).
  * The Ministry of Defence's "Will to Defend" project, in which Coop Pank
    participates through its "Kaardivägi" donation program aimed at collecting
    regular contributions, was awarded the Grand Prix for Marketing Act of the
    Year 2024 by the Estonian Marketing Association (TULI).
  * The Ministry of Defence awarded Coop Pank the "Supporter of National
    Defence" gold-level recognition for the second time. Coop Pank is among the
    top two donors to the Reservists Fund.
  * According to a Kantar Emor survey, Coop Pank is the most recommended bank in
    Estonia, and in Dive's annual customer survey, the bank ranked first for
    phone service.
  * According to Kantar Emor, Coop Pank's mobile application is among the ten
    most customer-friendly mobile applications of companies operating in
    Estonia.
  * According to Kantar Emor, Coop Pank ranks among the ten most reputable
    employers in Estonia.
  * The bank holds the Gold Label for Family-Friendly Employer status as well as
    the Remote Work Leader certification.
  * The Sustainable Business Association KELL (Kestliku Ettevõtluse Liit KELL)
    awarded Coop Pank a Gold Label in its Responsible Business Index.

In  2025, Coop Pank  also continued  to support  Estonian sports, sponsoring top
decathletes,  both the men's  and women's national  volleyball teams, as well as
the  initiative "Volleyball  in Every  Estonian School."  In addition,  the bank
provides  scholarships, thesis topics, and  internship opportunities for TalTech
students, helping to nurture future financial and technology experts.

The  bank's strategic goal is to grow its loan portfolio market share in Estonia
to  10% by the end of 2030 and  to expand annually at a  rate two to three times
faster  than the market  average - a  target that supports  the bank's ambitious
growth strategy. Coop Pank also aims to double its net profit over the next five
years  and reach at least EUR60 million  in net profit by 2030. This goal supports
the  bank's  ability  to  offer  shareholders  stable and attractive returns. As
business  volumes grow, the bank aims  to operate with high efficiency (cost-to-
income  ratio below  45%) and deliver  an expected  return on  equity (ROE of at
least 15%).

We  thank all Coop Pank clients, shareholders, and employees for the year 2025.
Our goal is to build a bank that becomes a success story for everyone. A success
story  for our customers. A success story  for our shareholders. A success story
for our employees. A success story for society."

 Income statement, in th. of euros    Q4 2025 Q3 2025 Q4 2024 12M 2025 12M 2024
-------------------------------------------------------------------------------
 Net interest income                   19 038  18 299  19 148   73 269   77 570

 Net fee and commission income          1 123   1 100   1 303    4 545    4 358

 Net other income                         797     143    -483    1 542      -45
-------------------------------------------------------------------------------
 Total net income                      20 958  19 542  19 968   79 355   81 883
-------------------------------------------------------------------------------
 Payroll expenses                      -6 438  -6 472  -6 007  -24 406  -23 411

 Marketing expenses                      -675    -370    -788   -1 857   -2 690

 Rental and office expenses, depr. of
 tangible assets                         -823    -683    -798   -3 090   -3 097

 IT expenses and depr. of intangible
 assets                                -1 995  -1 903  -1 731   -7 235   -6 189

 Other operating expenses              -1 490  -1 031  -1 473   -4 904   -5 189
-------------------------------------------------------------------------------
 Total operating expenses             -11 422 -10 459 -10 797  -41 491  -40 576
-------------------------------------------------------------------------------
 Net profit before impairment losses    9 537   9 083   9 171   37 864   41 307

 Impairment costs on financial assets  -1 041    -664  -1 821   -3 299   -4 643

 Net profit before income tax           8 495   8 419   7 350   34 565   36 663

 Income tax expenses                   -1 305  -1 448    -957   -5 842   -4 486
-------------------------------------------------------------------------------
 Net profit for the period              7 190   6 971   6 393   28 724   32 178
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 Earnings per share, eur                 0,07    0,07    0,06     0,28     0,31

 Diluted earnings per share, eur         0,07    0,07    0,06     0,27     0,31
-------------------------------------------------------------------------------


 Statement of financial position, in th. of
 euros                                         31.12.2025 30.09.2025 31.12.2024
-------------------------------------------------------------------------------
 Cash and cash equivalents                        488 717    416 495    343 678

 Debt securities                                   63 023     52 648     37 751

 Loans to customers                             2 114 091  2 023 349  1 774 118

 Other assets                                      37 163     39 443     33 066
-------------------------------------------------------------------------------
 Total assets                                   2 702 994  2 531 934  2 188 614
-------------------------------------------------------------------------------
 Customer deposits and loans received           2 124 520  1 957 852  1 886 145

 Debt securities issued                           255 203    254 676          0

 Other liabilities                                 25 580     28 752     27 683

 Subordinated debt                                 63 148     63 348     63 148
-------------------------------------------------------------------------------
 Total liabilities                              2 468 451  2 304 629  1 976 977
-------------------------------------------------------------------------------
 Equity                                           234 543    227 305    211 637
-------------------------------------------------------------------------------
 Total liabilities and equity                   2 702 994  2 531 934  2 188 614
-------------------------------------------------------------------------------

The reports of Coop Pank are accessible at: https://www.cooppank.ee/aruandlus.

Coop Pank will hold an Investor Webinar for the introduction of its financial
results, which is scheduled at 09:30 on 12 February 2026. The live broadcast of
the webinar can be watched on YouTube: https://youtube.com/live/CPM4_ZlNCfg and
on Facebook: https://www.facebook.com/events/1256194619765766/

The webinar will be recorded and posted on the company's website www.cooppank.ee
(https://www.globenewswire.com/Tracker?data=ysaYE2aduEcKrKAVh7DYM6LiE28UTJqD7xkd
SPeY2t-8glSNNf3zmGgGz59--m-ZGdW8mZfR_aEVv-L5dz38qQ==) and YouTube account
(https://www.youtube.com/@cooppank).

Coop  Pank, which  is based  on Estonian  capital, is  one of the five universal
banks  operating in  Estonia. The  bank has  227,000 everyday banking customers.
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 owner of  the bank is  the local retail chain
Coop Estonia, which has a sales network of 320 stores.

Further information:
Arko Kurtmann
Chief Executive Office
Email: [email protected] (mailto:[email protected])