Coop Pank — Interim / Quarterly Report 2021

Jul 21, 2021

Coop Pank Group 2021 Q2 unaudited results

Deposits

Business volumes in quarterly comparison

Results of Q2 2021 – compared to Q2 2020

• Key indicators in year on year comparison Revenues +1.9m€ (+25%)
• Net interest increased +1.5m€ as loan portfolio grew by 213m€
• Service fees +0.3m€
• Operating expenses +1.0m€ (+23%)
  • Payroll expenses (number of full-time employees increased)
  • IT costs
  • Marketing costs
• Impairment costs -56%
  • One off impairments due to corona pandemic totalled 0.7m€ in Q2 2020
• Net profit +123%

	Q2 2021Q2 2020	Year on Year change
Net operating income ('000 €)	9 341	7 464	+1 877	+25%
Interest	8 325	6 852	+1 473	+21%
Service fees and commissions	783	477	+306	+64%
Other	233	135	+98	+73%
Operating expenses	-5 336	-4 355	-981	+23%
Operating profit	4 005	3 109	+896	+29%
Impairment costs	-753	-1 721	+968	-56%
Profit before income tax	3 252	1 388	+1 864	+134%
Income tax	-220	-26	-194	+746%
Net profit	3 032	1 362	+1 670	+123%
Net loan portfolio (m€)	773	559	+213	+38%
Deposits and loans received	891	615	+276	+45%
Equity	104	92	+12	+13%
ROE	11.9%	6.0%	+5.9%
Net interest margin (NIM)	3.4%	4.1%	-0.7%
Cost of financing	0.8%	1.0%	-0.2%
Cost / income ratio (CIR)	57%	58%	-1.2%
Capital adequacy ratio	18.9%	20.8%	-1.9%

Results of Q2 2021 – compared to Q1 2021

• Key indicators in quarterly comparison Revenues +0.4m€ (+5%)
• Net interest +0.3m€ (+4%)
• Service fees +0.1m€ (+21%)
• Operating expenses +0.2m€ (+4%)
  • Payroll expenses
  • IT costs
• Impairment costs -2%
• Net profit +7%

	Q2 2021Q1 2021		Quarterly change
Net operating income ('000 €)	9 341	8 893	+448	+5%
Interest	8 325	8 043	+282	+4%
Service fees and commissions	783	648	+135	+21%
Other	233	202	+31	+15%
Operating expenses	-5 336	-5 123	-213	+4%
Operating profit	4 005	3 770	+235	+6%
Impairment costs	-753	-771	+18	-2%
Profit before income tax	3 252	2 999	+253	+8%
Income tax	-220	-164	-56	+34%
Net profit	3 032	2 835	+197	+7%
Net loan portfolio (m€)	773	696	+77	+11%
Deposits and loans received	891	849	+43	+5%
Equity	104	100	+4	+3%
ROE	11.9%	11.5%	+0.4%
Net interest margin (NIM)	3.4%	3.5%	-0.2%
Cost of financing	0.8%	0.8%	+0.0%
Cost / income ratio (CIR)	57%	58%	-0.5%
Capital adequacy ratio	18.9%	20.7%	-1.8%

Loan portfolio growth driven by business loans

• Net loan portfolio Quarterly growth of loan portfolio +77m€ (11%)
• Business loans +36m€ (+14%)
• Private mortgage loans +29m€ (+10%)
• Leasing +10m€ (+11%)
• Consumer loans +2m€ (+3%)
• Gross interest of portfolio is decreasing moderately
  • We are taking part in financing even bigger corporate/private clients which offer lower returns
  • Decreased proportion of consumer loans in total group loans impacts interest margin (see next slide)

Loan portfolio interest by business lines

Quality of loan portfolio

• Amount of payment holidays remains at a stable low level (ca 10m€ Q2 2021: 1% of total portfolio)
• Credit risk cost ratio 0.4% in Q2 2021 (Q1 2021 0.5%; Q2 2020 1.2%)

Total residual of loan principal amounts past due; loss allowances in balance sheet ; share of overdue contracts in total (gross) portfolio

Loan portfolio quality by business lines

Total residual of loan principal amounts past due; loss allowances in balance sheet; share of overdue contracts in total (gross) portfolio

m€ % 12% ,	11%	11%	10%	11%
9 7	7 7	8 0	6 9	7 7
1 7 6 2	2 3 4 5	2 7 3 5	2 5 4 5	2 5 2 5
4 1 -	4 6 -	- 4 7	- 4 5	4 8 -
Q2 2020	Q3	Q4	Q1 2021	Q2

Amount of deposits increased, cost stable

• Deposits Deposits grew by 43 € (5%) compared to Q1 2021
• +18m€ from private clients (+16m€ demand deposits, +2m€ term deposits)
• +79m€ from business clients (+46m€ demand deposits, +33m€ term deposits)
• -54m€ impact from Raisin platform and other financial institutions
• Proportion of demand deposits in total deposits at 44% (39% in Q1 2021)
• Total cost of financing remained on 0.8% level in Q2, cost impacted by issuing of subordinated bonds with high interest rate in Q1

We are growing client base and market share

• Market share and number of bank clients 7 000 new clients with bank account in Q2 2021 (+6 500 in Q1 2021)
• +6 500 private clients
• +500 business clients
• Coop Pank reached its goal of 100 000 daily banking clients
• Bank's market share changed in Q2 2021*
  • Market share in loan portfolio 3.4% => 3.6%
  • Market share in deposits 3.5% => 3.5%

No of customers (thousand)

Capital base supports growth plans

Performance indicators

• • Revenues +0.4m€ (+5%)
• Costs +0.2m€ (+4%)
• Increased ROE
• Strong monthly net profits in Q2 2021

Brand awareness and preference as a financial partner

Preference as a financial partner

Summary: Q2 2021 results

7 000 new clients 3.0m€ profit

• Loan portfolio grew by 77m€ in Q2 (+38% YoY)
• Deposits increased by 43m€ in Q2 (+45% YoY)
• 7 000 new customers (+34% YoY) The Bank now has a total of 100 000 clients with bank account
• Net profit 3.0m€ (+123% YoY)

Shareholders

No of Coop Pank shareholders TOP shareholders

No of shareholders

Shareholder distribution of Coop Pank as at 30.06.2021

Share price

Share price (€) and trading volume (thousand shares)

Kerli Lõhmus Member of Board, CFO kerli.lohmus@cooppank.ee

https://www.cooppank.ee/en/for-investors

Margus Rink Chairman of Board, CEO margus.rink@cooppank.ee