Coop Pank — Earnings Release 2025

Jul 18, 2025

Coop Pank unaudited financial results for Q2 2025

Coop Pank unaudited financial results for Q2 2025

By the end of the Q2 2025, Coop Pank had 218,000 customers, increased by 5,000
customers in the quarter (+2%) and by 22,000 in the year (+11%). The bank had
103,600 active customers, increased by 1,800 (+2%) in the quarter and by 8,300
(+9%) in the year.

In Q2 2025, volume of deposits in Coop Pank decreased by 98 million euros (-
5%), reaching total of 1.81 billion euros. The deliberate reduction of deposits
is a result of the successful covered bond issuance carried out in the first
quarter. Deposits from private clients increasing by 0.4 million euros: demand
deposits decreased by 0.4 million euros and term deposits increased by 0.8
million euros. Deposits from domestic business customers decreased by 78 million
euros: demand deposits decreased by 10 million euro and term deposits decreased
by 68 million euros. Deposits from international deposit platform Raisin and
other financing decreased by 21 million euros. Compared to Q2 2024, volume of
Coop Pank's deposits has increased by 77 million euros (+4%). In an annual
comparison, share of demand deposits of total deposits has increased from 32% to
33%. In Q2 2025, the bank's financing cost was 2.5%, at the same time last year
the financing cost was 3.4%.

In Q2 2025, net loan portfolio of Coop Pank increased by 125 million euros
(+7%), reaching 1.94 billion euros. Over the quarter, the strongest growth was
shown in the business loans portfolio, which increased by 82 million euros
(+10%). Home loans increased by 37 million euros (+5%). The volumes of leasing
portfolio increased by 3 million euros (+2%) and consumer finance portfolio
increased by 2 million euros (+2%). Compared to Q2 2024, total loan portfolio of
Coop Pank has grown by 322 million euros (+20%).

In Q2 2025, overdue loan portfolio of Coop Pank was at the level 2.8%. A year
ago, overdue loan portfolio was at the level of 2.2%.

Impairment costs of financial assets in Q2 2025 were 1.4 million euros, which is
1.1 million euros more than in previous quarter and 0.1 million euros more than
in Q2 2024.

Net income of Coop Pank in Q2 2025 was 19.5 million euros, increasing by 1% in a
quarterly comparison and decreasing by 5% in an annual comparison. Operating
expenses reached 10.1 million euros in Q2 - operating expenses increased by 6%
in the quarterly comparison and remained unchanged in the annual comparison.

In Q2 2025, net profit of Coop Pank was 6.6 million euros, which is 16% less
than in the previous quarter and 17% less than a year ago. In Q2 2025, cost to
income ratio of the bank was 52% and return on equity was 12.1%.

As of 30 June 2025, Coop Pank has 34,700 shareholders.

Heikko Mäe, Interim Chairman of the Management Board of Coop Pank, comments the
results:

"The Estonian economy as a whole has not yet picked up new growth momentum this
year. However, interest rates are stabilizing, there are signs that economic
headwinds are easing, and Coop Pank's results show that the rapid growth of a
domestic bank is continuing.

On one hand, 5% inflation has reduced consumer confidence and directly affects
the purchasing power of households. The rising unemployment rate, approaching
9%, is also a negative signal. On the other hand, there are positive signs in
the industrial sector, where capacity utilization is increasing thanks to the
recovery of export markets and lower interest costs.

In this economic environment, Coop Pank achieved strong results in the second
quarter: the bank grew its loan portfolio by a record 125 million euros and is
growing nearly twice as fast as the market. The strongest growth came from
business loans and home loans. We see that both the manufacturing and real
estate sectors are actively investing. Among home loan applicants, there is
particularly strong demand for construction loans, and many large-scale repair
and renovation works are in progress across homes in Estonia, financed through
home loans. While business volumes are growing quickly, the bank's operating
costs have remained the same as a year ago, and credit losses are still minimal.
This demonstrates that Coop Pank is operating efficiently and responsibly.

Since June, the bank has taken its cooperation with Coop retail to a new level
by offering a new cashback solution to shared private customers. This is an
important addition to the value proposition for joint customers and is part of
the bank's recently introduced account package upgrade.

Our results confirm that a strong local bank can grow successfully with its
customers even in a challenging economic environment. We continue to provide
banking services and financing solutions across all of Estonia - for households
seeking stability and for businesses looking for investment opportunities.

Growth in business volumes, the high quality of the loan portfolio, cost
control, and the decline in financing costs due to the interest rate environment
and scale effects resulted in a strong net profit of 6.6 million euros for Coop
Pank in the second quarter. The bank's cost-to-income ratio was 52%, and return
on equity was 12.1%."

Income statement, in th. of euros Q2 2025 Q1 2025 Q2 2024 6M 2025 6M 2024

Net interest income 18 003 17 930 19 319 35 933 38 400

Net fee and commission income 1 166 1 155 1 000 2 321 2 015

Net other income 375 225 146 600 271

Total net income 19 544 19 310 20 464 38 854 40 686

Payroll expenses -5 917 -5 578 -5 858 -11 496 -11 267

Marketing expenses -453 -358 -775 -811 -1 308

Rental and office expenses, depr. of
tangible assets -777 -807 -775 -1 584 -1 570

IT expenses and depr. of intangible
assets -1 724 -1 613 -1 474 -3 337 -2 879

Other operating expenses -1 220 -1 162 -1 208 -2 382 -2 494

Total operating expenses -10 091 -9 519 -10 091 -19 610 -19 518

Net profit before impairment losses 9 453 9 791 10 374 19 244 21 168

Impairment costs on financial assets -1 367 -226 -1 224 -1 594 -1 800

Net profit before income tax 8 086 9 565 9 150 17 650 19 368

Income tax expenses -1 437 -1 652 -1 152 -3 088 -2 232

Net profit for the period 6 649 7 913 7 998 14 562 17 136

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Earnings per share, eur 0,06 0,08 0,08 0,14 0,17

Diluted earnings per share, eur 0,06 0,08 0,08 0,14 0,16

Statement of financial position,
in th. of euros 30.06.2025 31.03.2025 31.12.2024 30.06.2024

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Cash and cash equivalents 356 473 564 441 343 678 335 710

Debt securities 47 832 49 536 37 751 36 980

Loans to customers 1 943 420 1 818 109 1 774 118 1 621 000

Other assets 36 090 34 711 33 066 32 608

Total assets 2 383 816 2 466 796 2 188 614 2 026 298

Customer deposits and loans
received 1 816 313 1 914 526 1 886 145 1 739 709

Debt securities issued 253 537 250 250 0 0

Other liabilities 30 645 19 096 27 683 28 121

Subordinated debt 63 148 63 363 63 148 63 148

Total liabilities 2 163 642 2 247 235 1 976 977 1 830 978

Equity 220 174 219 561 211 637 195 320

Total liabilities and equity 2 383 816 2 466 796 2 188 614 2 026 298

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

Coop Pank will organise a webinar on 18 July 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-registreeru-18072025

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 218,000 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])