Börsiteade

Pealkiri

Unaudited financial results of Coop Pank for Q4 and 12 months of 2020

Teade

In  2020, Coop  Pank  increased  its  business  volumes  by  40% for  the fourth
consecutive year.

Number  of the bank's customers  at the end of  2020 was 86,700 - an increase of
23,000 customers,  i.e. 36% over  the year.  For comparison: 5,000 new customers
were  gained in 2017, 9,000 in  2018 and 19,000 in 2019. In  2020, the number of
private  customers increased by 21,000 and the  number of corporate customers by
2,000.

Loan portfolio of Coop Pank increased to 671 million euros in 2020 - an increase
of  210 million  euros,  i.e.  46%, over  the  year. Business loan and home loan
portfolios  increased the most with 64% and 47%, respectively. Leasing portfolio
increased  by 30% and consumer finance by  11%. Market share of the bank's loans
at the end of 2020 was 3.4%, an increase of 1 percentage point over the year.

Quality  of the loan portfolio remained stable irrespective of the corona crisis
and  the  solvency  of  customers  who  used  the  grace  period, has recovered.
Provisions  of 4.8 million euros were formed in 2020 as cover for potential loan
losses.  Credit risk cost ratio was  0.8%, compared to 0.5% in 2019. Increase in
impairment  costs derived from significant increase  in portfolio as well as the
impact of the economic environment.

Deposits  of Coop Pank amounted to 758 million euros  as at the end of 2020 - an
increase  of 251 million euros, i.e. 50%, over the year. Demand deposits grew by
99% over  the year and term deposits by  29%. As the share of demand deposits in
total  deposits increased  from 30% to  39% over the  year, the bank's financing
costs decreased from 1.0% to 0.9%. Market share of the bank's deposits increased
from 2.6% to 3.2%.

Profit earned by Coop Pank in 2020 amounted to 7.3 million euros, an increase of
31% over  the  year.  Annual  increase  in  the  bank's  income was 31%. Largest
contribution to revenue growth came from net interest income, which increased by
37% over  the  year.  Annual  increase  in  the bank's operating costs was 16%.
Increase  in IT expenses and personnel expenses  had the biggest impact, as they
grew by 63% and 12%, respectively, over the year.

Return  on equity of the bank was  7.8% and the cost-income ratio decreased from
69% to 60%.

Results in Q4

Number of the bank's customers increased by 6,800, i.e. 9%, in Q4 2020. 6,200 of
them  were private  customers and  600 were corporate  customers. Coop  Pank had
86,700 daily banking customers as at year end.

The  bank's net loan  portfolio increased by  71 million euros, i.e. 12%, in the
quarter  and amounted to 671 million euros by year end. Business loans increased
by  43 million euros, home loans by 24 million euros, leasing by 3 million euros
and consumer finance by 2 million euros.

Deposits increased by 70 million euros in the quarter, i.e. 10%, and amounted to
758 million  euros by year end. 70 million euros increase in demand deposits can
be  considered  significant.  Local  term  deposits  of  private  and  corporate
customers  grew by  39 million euros  whilst deposits  raised from international
platforms decreased by the same amount.

Profit  earned by the bank  in Q4 2020 was 2.4 million  euros, which is 20% more
than in Q3 and 53% more than in the same period last year.

Comments of the CEO of Coop Pank Margus Rink:

"Coop  Pank has been operating on Estonian  banking market for four years. We've
been  implementing a growth  strategy in these  years and increased our business
volumes by 40% a year on average. We feel that our footprint in Estonian economy
is growing.

The  crisis that broke out in the beginning of the year cast doubt on our growth
opportunities  in 2020. However,  increase in  our business  volumes slowed down
only  in  March  and  April,  and  recovered  in  May. In spring and summer, our
strategy  as a local Estonian bank led  to particularly good results: our market
share  of new home loans and corporate financing in this period was 10%. Despite
extraordinary  nature of last year our branches  remained open and we didn't ask
our  customers  to  make  appointments  for  visiting  us.  Our account managers
continued  communicating with  customers from  their home  offices using digital
channels.  All in all, we can say that we want to grow and took advantage of the
opportunity that presented itself.

Our  biggest concern in the year was  fear for preservation of jobs and solvency
of  our customers. We offered our customers grace periods to prevent insolvency,
which  many of them used.  At the start of  the crisis we also formed additional
provisions  in light of possible loan  losses. Fortunately, real life turned out
to  be better than we feared. In second  half of the year grace periods given to
customers  started to end and occasionally  customers ended these periods early.
We ended 2020 with lower rate of overdue loans than the year before.

Every  year, increasingly more  customers join us  and start using  Coop Pank as
their  main bank, which  means that they  have their monthly  cash receipts paid
into  accounts in our bank and use our payment solutions. This trend has another
positive  aspect: the share  of local demand  resources increases, which reduces
financing  costs of the bank and makes it possible to offer better loan interest
to customers.

In  August, international rating  agency Moody's assigned  Coop Pank investment-
grade  rating of Baa2 with  a stable outlook. This  step created opportunity for
major  businesses, state and local authorities  to become customers of Coop Pank
and  keep their money  in a local  financial institution where  interest paid on
deposits  is the best on  the market. Inflow of  deposits of corporate customers
increased  significantly after  the rating  was assigned.  Deposits of corporate
customers  increased by 131% and deposits of  private customers grew by 26% over
the year.

While  implementing our  growth strategy,  it has  always been important to have
profitable  growth. 2020 was  the first  year when  we saw  that we were getting
close  to  the  critical  level,  i.e.  the  economies of scale, in our business
volumes,  which  guarantees  improvement  of  efficiency  indicators. The bank's
income  grew  twice  as  fast  as  its  expenses and cost-income ratio decreased
significantly.

Coop Pank had approximately 13,000 shareholders as at 31 December 2020. The bank
has   approximately   2,000 new   shareholders  in  addition  to  the  ones  who
participated  in initial public  offering of the  bank's shares. We are grateful
for their trust.

In  2021, we will continue with the strategy that has brought us success so far.
We want to grow, we are proactive and we are looking for solutions that fit into
our  customers lives and/or businesses. We have  promised our owners that by the
end  of 2022, Coop Pank will have at least 100,000 customers, our loan portfolio
will be at least 1 billion euros, our financing costs will decrease to 0.7%, our
cost-income  ratio will drop to 50% and return  on equity will increase to 15%.
Our team does everything in its power to keep this promise."

 Income statement, in thousands of
 euros                                Q4 2020 Q3 2020 Q4 2019 12M 2020 12M 2019
-------------------------------------------------------------------------------
 Net interest income                    7 808   7 353   5 819   28 371   20 689

 Net fee and commission income            540     558     675    2 097    2 372

 Net other income                         171      77     262      621      658
-------------------------------------------------------------------------------
 Total net income                       8 519   7 988   6 756   31 089   23 719
-------------------------------------------------------------------------------
 Payroll expenses                      -2 976  -2 844  -2 710  -11 085   -9 880

 Marketing expenses                      -350    -168    -317     -945   -1 006

 Rental and office expenses,
 depreciation of tangible assets         -539    -557    -550   -2 211   -1 931

 IT expenses and depreciation of
 intangible assets                       -767    -632    -444   -2 454   -1 501

 Other operating expenses                -640    -525    -614   -2 101   -1 943
-------------------------------------------------------------------------------
 Total operating expenses              -5 272  -4 726  -4 635  -18 796  -16 261
-------------------------------------------------------------------------------
 Net profit before impairment losses    3 247   3 262   2 121   12 293    7 458

 Impairment costs on financial assets    -715  -1 139    -538   -4 789   -1 931

 Net profit before income tax           2 532   2 123   1 583    7 504    5 527

 Income tax expenses                     -108    -111       0     -245        0
-------------------------------------------------------------------------------
 Net profit for the financial year      2 424   2 012   1 583    7 259    5 527
-------------------------------------------------------------------------------
 Basic earnings per share (in euros)     0.03    0.02    0.02     0.08     0.09

 Diluted earnings per share (in
 euros)                                  0.03    0.02    0.03     0.08     0.09


 Statement of financial position, in thousands
 of euros                                      31.12.2020 30.09.2020 31.12.2019
-------------------------------------------------------------------------------
 Cash and cash equivalents                        170 750    168 984    122 295

 Debt securities                                    3 011      3 084      4 061

 Loans to customers                               670 593    599 213    460 460

 Other assets                                      25 555     26 179     24 486
-------------------------------------------------------------------------------
 Total assets                                     869 909    797 460    611 302
-------------------------------------------------------------------------------
 Customer deposits and loans received             757 835    688 116    506 531

 Other liabilities                                  7 443      7 978      8 356

 Subordinated debt                                  7 064      7 111      7 064
-------------------------------------------------------------------------------
 Total liabilities                                772 342    703 205    521 951
-------------------------------------------------------------------------------
 Equity                                            97 567     94 255     89 351
-------------------------------------------------------------------------------
 Total liabilities and equity                     869 909    797 460    611 302
-------------------------------------------------------------------------------

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 10:00 on 11 February 2021. In order to
participate, please register in advance via the following link:
https://attendee.gotowebinar.com/register/5731544521527869710.

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==) as well as on the
youtube.com account of Nasdaq Baltic.

Coop  Pank, which  is based  on Estonian  capital, is  one of the five universal
banks operating in Estonia. The bank has 86,700 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 330 stores.

Further information:
Kerli Lõhmus
Chief Financial Officer
Telephone: +372 669 0902
Email: [email protected] (mailto:[email protected])