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Coop Pank AS results for July 2025

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Coop Pank's financial results in July 2025:

  * In July, number of the bank's clients increased by 1,700 and number of
    active clients increased by 600. By the end of the month number of clients
    reached 219,300 and number of active clients reached 104,100. Over the year,
    customer base has grown by 11%.
  * Volume of the bank's customer deposits increased by 111 million euros and
    reached 1.93 billion euros by the end of month. Deposits of corporate
    customers increased by 50 million euros and deposits of private customers
    increased by 2 million euros. The volume of deposits attracted from
    international platforms increased by 59 million euros. Over the year, volume
    of bank deposits has grown by 124 million euros, i.e. 7%.
  * The bank's loan portfolio increased by 23 million euros and reached 1.97
    billion euros by the end of month. Business loans increased by 10 million
    euros and home loans increased by 13 million euros. Consumer financing
    portfolios increased by 1 million euros and leasing portfolio decreased by
    1 million euros. Over the year, loan portfolio has grown by 329 million
    euros, i.e. 20%.
  * In July, the loan impairment cost was 0.2 million euros.
  * Compared to the first seven months of last year, the bank's net income
    decreased by 6% and operating expenses have remained at the same level as a
    year ago.
  * In July, the bank earned net profit of 2.4 million euros. In the first seven
    months of the year, the bank has earned a net profit of 16.9 million euros,
    that is 16% less than in the same period last year.
  * In July, Coop Pank's return on equity was 12.7% and the cost-income ratio
    was 52%.

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

"The Estonian economy is moving on a slow recovery path, but growth remains weak
and unstable. Inflation is still high - in July, inflation was 5.4% year-on-
year. The price increase is partly due to the rise of several taxes; by product
group, expenditures on food and healthcare increased the most in annual
comparison. As a result of rapid price growth, consumer confidence remains low.
At the same time, significantly lower interest rates compared to a year ago and
lower energy prices give hope for an improvement in consumer confidence in the
second half of the year.

We are seeing strong growth in loan demand from private customers. In the market
as a whole, the turnover of home loans in June was a record-high 268 million
euros, surpassing all previous peaks. The turnover of home loans in June was
significantly influenced by the increase of value-added tax by 2 percentage
points from July - customers wanted to purchase homes in new developments before
the price increase. In July, customers taking home loans did not take a break;
loans were actively sought both for home purchases as well as for construction
and renovation.

Demand for consumer financing was strong in July; people need additional funds
both for home renovation and furnishing as well as for carrying out travel
plans. The car leasing portfolio decreased slightly in July, but we see that the
offering of used car leasing with zero down payment and a fixed interest rate
appeals to consumers, giving them confidence regarding the size of their
payments.

At the turn of the month, all Coop Pank's private customers received new daily
banking packages. The majority of customers prefered the "Kasulik" package,
which gives bank debit card users 1% of their purchase amount back to their
account for purchases made at Coopi stores. Together with the purchase bonus
offered by Coop stores, customers can receive up to 3% additional discounts on
purchases made with the bank's debit cards. We see that this offer helps us
attract new customers, but above all to activate our existing joint customers
with Coop stores.

On the corporate side, we see that industrial production volumes have turned to
growth; falling base interest rates and the reinstatement of corporate income
tax refunds are gradually giving entrepreneurs confidence to start investment
plans. Coop Pank's business loan portfolio has been in strong growth since the
beginning of the year, and growth continued in July. We see demand particularly
from the manufacturing industry, but other sectors are also more active compared
to the beginning of the year. For example, in July, Coop Pank's long-time
customer Pro Grupp Invest opened in Jõgevamaa Estonia's largest and the Baltic
States' most modern feed factory, which will make it possible to improve the
quality of various feeds, increase production volumes, and boost exports.

To finance strong loan growth, the bank raised a total of 111 million euros in
deposits in July, of which nearly half was attracted from local customers and
the other part from the international deposit platform Raisin.

We are pleased that we have been able to keep operating expenses at the same
level as a year ago for several months in a row, interest expenses are
decreasing, and the continued strong growth rate of the loan portfolio as a
whole provides a good platform for turning profit growth around. In July, the
bank earned a net profit of 2.4 million euros. The bank's return on equity was
12.7% and the cost-income ratio was 52%."

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 219,300. 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])