Coop Pank — Interim / Quarterly Report 2022

Jul 20, 2022

Coop Pank Group 2022 Q2 unaudited results

20.07.2022

Business volumes in quarterly comparison

Increase calculations refer to active customers. Active client has made at least 4 transactions in the last 60 days

Deposits

Results of Q2 2022 – compared to Q2 2021

• Key indicators in year on year comparison Revenues +3.4m€ (+37%)
• Net interest increased +3.3m€ as loan portfolio grew by 359m€
• Operating expenses +1.3m€ (+24%)
  • Payroll expenses
  • IT costs incl. amortization of non-tangible assets
• Impairment costs +0.4m€ (+57%)
  • Increase of loan portfolio (+46%)
  • Decreased loan impairments due to war in Ukraine (impairments made in Q1 2022)
  • Negative changes in macroeconomic outlook
• Net profit +51%

	Q2 2022Q2 2021		Year on Year change
Net operating income ('000 €)	12 757	9 341	+3 416	+37%
Interest	11 629	8 325	+3 304	+40%
Service fees and commissions	904	783	+121	+15%
Other	224	233	-9	-4%
Operating expenses	-6 610	-5 336	-1 274	+24%
Operating profit	6 147	4 005	+2 142	+53%
Impairment costs	-1 181	-753	-428	+57%
Profit before income tax	4 966	3 252	+1 714	+53%
Income tax	-378	-220	-158	+72%
Net profit	4 588	3 032	+1 556	+51%
Net loan portfolio (m€)	1 131	773	+359	+46%
Deposits and loans received	1 249	891	+357	+40%
Equity	117	104	+13	+13%
ROE	15.8%	11.9%	+3.9%
Net interest margin (NIM)	3.4%	3.4%	+0.1%
Cost of financing	0.5%	0.8%	-0.3%
Cost / income ratio (CIR)	52%	57%	-5.3%
Capital adequacy ratio	16.7%	18.9%	-2.2%

Results of Q2 2022 – compared to Q1 2022

• Key indicators in quarterly comparison Revenues +1.3m€ (+11%)

• Net interest +1.0m€ (+10%), loan portfolio +91m€

• Operating expenses +0.4m€ (+7%)

• Payroll expenses
• IT costs incl. amortization of non-tangible assets
• Impairment costs -0.3m€ (-21%)

• Net profit +31%

	Q2 2022Q1 2022		Quarterly change
Net operating income ('000 €)	12 757	11 492	+1 265	+11%
Interest	11 629	10 595	+1 034	+10%
Service fees and commissions	904	796	+108	+14%
Other	224	101	+123	+122%
Operating expenses	-6 610	-6 199	-411	+7%
Operating profit	6 147	5 293	+854	+16%
Impairment costs	-1 181	-1 494	+313	-21%
Profit before income tax	4 966	3 799	+1 167	+31%
Income tax	-378	-299	-79	+26%
Net profit	4 588	3 500	+1 088	+31%
Net loan portfolio (m€)	1 131	1 040	+91	+9%
Deposits and loans received	1 249	1 149	+100	+9%
Equity	117	115	+2	+2%
ROE	15.8%	12.3%	+3.4%
Net interest margin (NIM)	3.4%	3.4%	+0.1%
Cost of financing	0.5%	0.5%	-0.0%
Cost / income ratio (CIR)	52%	54%	-2.1%
Capital adequacy ratio	16.7%	16.7%	-0.0%

Loan portfolio continues to grow

• Net loan portfolio Quarterly growth of loan portfolio +91m€ (9%)
• Private mortgage loans +40m€ (+10%)
• Business loans +36m€ (+8%)
• Leasing +10m€ (+9%)
• Consumer loans +6m€ (+9%)

Loan portfolio interest by business lines

Quality of loan portfolio

• Credit risk cost ratio 0.4% in Q2 2022
• Possible worsening of macroeconomic environment is considered in our impairment calculations

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€, %	11%	9%	9%	8%	8%
	7.7	5.7	6.1	5.5	6.5
	2.5 5.2	2.0 3.7	1.6 4.5	1.0 4.5	1.2 5.3
	- 4.8	- 4.0	- 3.4	- 2.9	- 3.1
	Q2 2021	Q3	Q4	Q1	Q2 2022

Deposits increased

• • +87m€ from business clients (+31m€ demand deposits, +57m€ term deposits)
• +4m€ from private clients (+11m€ demand deposits, -7m€ term deposits)
• +9m€ from Raisin platform and other financial institutsions
• Proportion of demand deposits at 49%

Client base and market share

Clients with a bank account. Active client has made at least 4 transactions in the last 60 days *Source: market share statistics as at May 2022

Total no of clients

• Total no of clients increased by 8300 (+7%) in Q2 2022 (+7800 in Q1 2021)
• 4500 (+8%) new active clients in Q2 2022 (+3200 in Q1 2022)
• Bank's market share changed in Q2 2022*:
• Market share of loan portfolio 4.9% => 5.0%
• Market share of deposits portfolio 4.2% => 4.4%

Capital base supports growth plans

Performance indicators

• Cost / income ratio (CIR) and ROE Decreased CIR (long term goal: <50%)
• Revenues +1.3m€ (+11%)
• Costs +0.4m€ (+7%)
• Increased ROE (long term goal: >15%)
  • Strong profitability in Q2 2022

Brand awareness and preference as a financial partner

Preference as a financial partner

Shareholders

Share price

• Share price at the end of Q2 2022 at 2.32 € (2.68 € at the end of Q1 2022)
• No of transactions in Q2 2022 totalling 18 thousand
• Volume of transactions 4m€
• EPS in Q2 2022: 0.05 €

Allikad: Nasdaq CSD, Coop Pank Turuväärtus on leitud kvartali lõpu aktsia turuhinna ja noteeritud aktsiate arvu alusel

Summary: Q2 2022 results

4.6m€ profit ROE 15.8%

• Business volumes continue to grow ca +40% YoY
• Net profit 4.6m€ (+51% YoY)
• CIR: 52% (Q2 2021 57%)
• ROE: 15.8% (Q2 2021 11.9%)
• Made first dividend payment of 2.7m€ (€0.03 per share)
• 16.1m€ of additional capital gained to support growth strategy

Paavo Truu Member of Board, CFO paavo.truu@cooppank.ee

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

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