Coop Pank — Earnings Release 2025

Apr 23, 2025

Coop Pank unaudited financial results for Q1 2025

Coop Pank unaudited financial results for Q1 2025

By the end of the Q1 2025, Coop Pank had 213,000 customers, increased by 5,000
customers in the quarter (+2%) and by 23,000 in the year (+12%). The bank had
101,800 active customers, increased by 2,400 (+3%) in the quarter and by 17,400
(+21%) in the year.

In Q1 2025, volume of deposits in Coop Pank decreased by 29 million euros (+2%),
reaching total of 1.91 billion euros. Deposits from private clients increasing
by 15 million euros: demand deposits increased by 9 million euros and term
deposits increased by 6 million euros. Deposits from domestic business customers
increased by 39 million euros: demand deposits increased by 36 million euro and
term deposits increased by 3 million euros. Deposits from international deposit
platform Raisin and other financing decreased by 24 million euros. Compared to
Q1 2024, volume of Coop Pank's deposits has increased by 221 million euros
(+13%). In an annual comparison, share of demand deposits of total deposits has
increased from 30% to 32%. In Q1 2025, the bank's financing cost was 2.8%, at
the same time last year the financing cost was 3.5%.

In Q1 2025, net loan portfolio of Coop Pank increased by 44 million euros (+3%),
reaching 1.81 billion euros. Business loans and home loans portfolio showed the
biggest growth, both increased by 22 million euros (+3%). The volumes of leasing
portfolio and consumer finance portfolio remained at the same level compared to
the previous quarter. Compared to Q1 2024, total loan portfolio of Coop Pank has
grown by 287 million euros (+19%).

In Q1 2025, overdue loan portfolio of Coop Pank remained steady at the level
2.1%. A year ago, overdue loan portfolio was at the level of 2.4%.

Impairment costs of financial assets in Q1 2025 were 0.2 million euros, which is
1.6 million euros (-88%) less than in previous quarter and 0.4 million euros (-
61%) less than in Q1 2024.

Net income of Coop Pank in Q1 2025 was 19.3 million euros, decreasing by 3% in a
quarterly comparison and by 5% in an annual comparison. Operating expenses
reached 9.5 million euros in Q1 - operating expenses decreased by 12% in the
quarterly comparison and increased by 1% in the annual comparison.

In Q1 2025, net profit of Coop Pank was 7.9 million euros, which is 24% more
than in the previous quarter and 13% less than a year ago. In Q1 2025, cost to
income ratio of the bank was 49% and return on equity was 14.7%.

As of 31 March 2025, Coop Pank has 35,200 shareholders.

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

"In recent quarters, we have seen positive signs in the economic environment - a
slowdown in inflation, declining interest rates, and stable energy prices.
Unfortunately, the past few months have also brought news of trade wars, which
mainly affect the global economy, but they have also caused concern among local
businesses. At the end of last year, we saw that, after a long wait,
entrepreneurs had dusted off their investment plans and started to take action
again, now, however, we can once again sense a decline in their confidence.

Despite this, the declining interest rate environment offers good opportunities
for investment and reduces financing costs for both legal entities and private
individuals. For the bank, it means a drop in interest income, which can only be
compensated by growing business volumes.

In the first quarter, Coop Pank grew its business volumes at twice the rate of
market growth - with solid increases in the number of clients, as well as in
deposits and the loan portfolio. By the end of the quarter, Coop Pank held a
6.3% market share in deposits and a 6.6% share in loans.

Growth in business volumes, the high quality of the loan portfolio, and
effective cost control resulted in a strong net profit for Coop Pank in the
first quarter: 7.9 million euros. The bank's cost-to-income ratio for Q1 was
49% and return on equity was 14.7%.

According to recent research by Kantar Emor on the Net Promoter Score (NPS) of
Estonia's largest service companies, Coop Pank is the most recommended bank in
Estonia.

In March, Coop Pank issued covered bonds for the first time on the Irish Stock
Exchange, in the amount of 250 million euros with a maturity of four years. This
was the initial tranche of a 750 million euros covered bond program. The bank's
first international covered bond issuance provides Coop Pank with an additional
long-term and stable funding source, which will be used to support the growth of
businesses operating in Estonia."

Income statement, in th. of euros Q1 2025 Q4 2024 Q1 2024

Net interest income 17 930 19 149 19 082

Net fee and commission income 1 155 1 303 1 014

Net other income 225 -483 125

Total net income 19 310 19 969 20 221

Payroll expenses -5 578 -6 007 -5 409

Marketing expenses -358 -788 -533

Rental and office expenses, depr. of tangible assets -807 -798 -795

IT expenses and depr. of intangible assets -1 613 -1 731 -1 405

Other operating expenses -1 162 -1 473 -1 286

Total operating expenses -9 519 -10 798 -9 427

Net profit before impairment losses 9 791 9 171 10 794

Impairment costs on financial assets -226 -1 821 -576

Net profit before income tax 9 565 7 351 10 218

Income tax expenses -1 652 -957 -1 080

Net profit for the period 7 913 6 393 9 138

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Earnings per share, eur 0,08 0,06 0,09

Diluted earnings per share, eur 0,08 0,06 0,09

Statement of financial position, in th. of
euros 31.03.2025 31.12.2024 31.03.2024

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Cash and cash equivalents 564 441 343 678 380 644

Debt securities 49 536 37 751 36 460

Loans to customers 1 818 109 1 774 118 1 531 038

Other assets 34 711 33 066 31 320

Total assets 2 466 796 2 188 614 1 979 461

Customer deposits and loans received 1 914 526 1 886 145 1 693 254

Debt securities issued 250 250 0 0

Other liabilities 19 096 27 683 27 698

Subordinated debt 63 363 63 148 63 239

Total liabilities 2 247 235 1 976 977 1 784 191

Equity 219 561 211 637 195 270

Total liabilities and equity 2 466 796 2 188 614 1 979 461

The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting

Coop Pank will organise a webinar on 23 April 2025 at 9:00 AM, to present the
financial results of Q1 2025. For participation, please register in advance at:
https://bit.ly/CP-veebiseminar-osalemine-23042025

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 213,000 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: [email protected] (mailto:[email protected])