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Coop Pank unaudited financial results for Q2 2024

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By  the end of the Q2 2024, Coop Pank had 196,000 customers, increased by 7,000
customers  in the quarter (+4%)  and by 29,000 in the  year (+17%). The bank had
89,500 active  customers, increased by 5,100 (+6%) in the quarter and by 13,300
(+17%) in the year.

In Q2 2024, volume of deposits in Coop Pank increased by 46 million euros (+3%),
reaching total of 1.74 billion euros. Deposits from private clients increased by
6 million euros: demand deposits increased by 17 million euros and term deposits
decreased  by  11 million  euros.  Deposits  from  domestic  business  customers
increased by 39 million euros: demand deposits increased by 38 million euros and
term  deposits  increased  by  1 million  euros. Deposits from the international
deposit  platform  Raisin  and  other  financing  increased  by 1 million euros.
Compared  to Q2 2023, volume of Coop Pank's deposits has decreased by 15 million
euros  (-1%). In an annual comparison, share  of term deposits of total deposits
has  increased from 67% to 68%. In Q2 2024, the bank's financing cost was 3.3%,
at the same time last year the financing cost was 2.1%.

In Q2 2024, net loan portfolio of Coop Pank increased by 90 million euros (+6%),
reaching  1.62 billion euros. All  financing business lines  showed good growth.
The  volumes of business loan portfolio increased by 42 million euros (+6%), the
volumes  of home loan portfolio increased by 37 million euros (+6%), the leasing
portfolio  increased  by  7 million  euros  (+4%) and consumer finance portfolio
increased by 4 million euros (+4%). Compared to Q2 2023, total loan portfolio of
Coop Pank has grown by 163 million euros (+11%).

In Q2 2024, overdue loan portfolio of Coop Pank decreased from the level of
2.4% to the level of 2.2%. A year ago, overdue loan portfolio was at the level
of 2.0%.

Impairment costs of financial assets in Q2 2024 were 1.2 million euros, which is
0.7 million  euros (+113%)  more than  in the  previous quarter  and 1,0 million
euros (-45%) less than in Q2 2023.

Net income of Coop Pank in Q2 2024 was 20.5 million euros, increasing by 1% in a
quarterly  comparison and  decreasing by  9% in an  annual comparison. Operating
expenses reached 10.1 million euros in Q2, operating expenses increased by 7% in
the quarterly comparison and 18% in the annual comparison.

In  Q2 2024, net profit of Coop Pank was 8 million euros, which is 12% less than
in the previous quarter and 23% less than a year ago. In Q2 2024, cost to income
ratio of the bank was 49% and return on equity was 16.4%.

As of 30 June 2024, Coop Pank has 36,900 shareholders.

Margus  Rink,  Chairman  of  the  Management  Board  of  Coop Pank, comments the
results:

"In the second quarter, the success story of Coop Pank was a decent increase in
business volumes. When in the cooled economic environment, the loan portfolio of
the entire Estonian banking sector has increased by only nearly 350 million
euros this year, our share was approximately one third of it. This means that we
continue to grow our market share. Particularly active business took place in
the home loan and car leasing segments. Also, the volume of business customers
financing is increasing. The quality of the loan portfolio remains high, and
today it can be said that we have made the right loan decisions in the past,
which is proven by the fact that the economic crisis have not hit us.

The interest rate environment has been in a downward trend since last fall.
However, the pace of decline has been slower than it was predicted at the end of
last year. Both the interest on the loan portfolio and the interest paid on
deposits have decreased. The first of them has changed more operatively, because
here what happens in the market is converted into the bank's loan portfolio
faster - the loan interest changes every 6 months. As interest rates on term
deposits change mostly in 12 month increments, the effect of their conversion on
the bank's balance has been slower. As a result of these trends, year-on-year
our net interest margin fell from 4.6% to 3.6%, returning to the level of 2022.

We see significant increases in operating costs in the annual comparison
primarily because in 2023 with informed management decisions we increased the
number of employees by 66. This year, the increase has been only 13 employees,
and the quarterly increase in expenses is in line with the increase in business
volumes.

In summary, with the bank's performance indicators, after the extraordinary year
of 2023 with high interest levels, we are back in reality, i.e. at the level of
2022. According to Coop Pank's long-term goals, our cost-income ratio is below
50% and our return on equity is above 15%."

 Income statement, in th. of euros      Q2 2024 Q1 2024 Q2 2023 6M 2024 6M 2023
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 Net interest income                     19 319  19 082  21 044  38 400  39 416

 Net fee and commission income            1 000   1 014   1 183   2 015   2 211

 Net other income                           146     125     163     271     424
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 Total net income                        20 465  20 221  22 390  40 686  42 051
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 Payroll expenses                        -5 858  -5 409  -4 900 -11 267  -9 445

 Marketing expenses                        -775    -533    -633  -1 308  -1 045

 Rental and office expenses, depr. of
 tangible assets                           -775    -795    -726  -1 570  -1 425

 IT expenses and depr. of intangible
 assets                                  -1 474  -1 405  -1 082  -2 879  -2 237

 Other operating expenses                -1 208  -1 286  -1 224  -2 494  -2 008
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 Total operating expenses               -10 091  -9 427  -8 565 -19 518 -16 160
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 Net profit before impairment losses     10 374  10 794  13 825  21 168  25 891

 Impairment costs on financial assets    -1 224    -576  -2 232  -1 800  -3 859

 Net profit before income tax             9 150  10 218  11 593  19 368  22 032

 Income tax expenses                     -1 152  -1 080  -1 227  -2 232  -2 291
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 Net profit for the period                7 998   9 138  10 366  17 136  19 741
-------------------------------------------------------------------------------

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 Earnings per share, eur                   0,08    0,09    0,10    0,17    0,19

 Diluted earnings per share, eur           0,08    0,09    0,10    0,16    0,19
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 Statement of financial position,
 in th. of euros                    30.06.2024 31.03.2024 31.12.2023 30.06.2023
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 Cash and cash equivalents             335 710    380 644    428 354    459 631

 Debt securities                        36 980     36 460     36 421     27 877

 Loans to customers                  1 621 000  1 531 038  1 490 873  1 458 201

 Other assets                           32 608     31 320     30 564     32 500
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 Total assets                        2 026 298  1 979 461  1 986 212  1 978 209
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 Customer deposits and loans
 received                            1 739 709  1 693 254  1 721 765  1 754 746

 Other liabilities                      28 121     27 698     28 435     19 967

 Subordinated debt                      63 148     63 239     50 187     38 139
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 Total liabilities                   1 830 978  1 784 191  1 800 387  1 812 852
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 Equity                                195 270    185 825    158 549
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 Total liabilities and equity        1 979 461  1 986 212  1 729 876
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The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting

Coop Pank will organise a webinar on 18 July 2024 at 9:00 AM, to present the
financial results of Q2 2024. For participation, please register in advance at:
https://bit.ly/CP-18072024-registreerumine

The webinar will be recorded and published on the company's website
www.cooppank.ee (http://www.cooppank.ee) and on the YouTube channel
(https://www.youtube.com/@cooppank).

Coop Pank, based on Estonian capital, is one of the five universal banks
operating in Estonia. The bank has 196,000 daily banking clients. 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: +372 516 0231

E-mail: paavo.truu@cooppank.ee (mailto:paavo.truu@cooppank.ee)