Coop Pank — Interim / Quarterly Report 2022

Apr 20, 2022

Interim Report 3 months 2022

1

Management Director´s Statement 3
Overview of financial results 4
Capitalisation 6
Consolidated financial statements 7
Consolidated statement of comprehensive income 7
Consolidated statement of financial position 8
Consolidated statement of cash flows9
Consolidated statement of changes in equity 10
Notes to consolidated financial statements11
Note 1 Accounting principles11
Note 2 Operating segments 12
Note 3 Net interest income 14
Note 4 Net fee and commission income 14
Note 5 Cash and cash equivalents 14
Note 6 Debt securities at fair value through other comprehensive income 15
Note 7 Loans and advances to customers 15
Note 8 Loss allowances of loans and advances 15
Note 9 Allocation of past due loans 15
Note 10 Financial assets and liabilities by residual maturity 16
Note 11 Customer deposits and loans received 17
Note 12 Contingent liabilities 17
Note 13 Related parties 17
Note 14 Basic earnings and diluted earnings per share 18
Shareholders, Supervisory Board and Management Board of Coop Pank AS 19
Statement of the Management Board of Coop Pank AS 19

Management Director´s Statement

Business volumes and financial results

By the end of the Q1 2022, Coop Pank had 122,400 customers, during the quarter the number of customers increased by 7,800 (+7%). The bank had 54,200 active customers, during the quarter the number of active customers increased by 3,200 (+6%).

In Q1 2022, volume of deposits in Coop Pank increased by 50 million euros (+5%), reaching total of 1.15 billion euros. Deposits from domestic companies showed the fastest growth, increasing by 78 million euros, of which 42 million were demand deposits and 36 million were term deposits. Deposits from private clients increased by 11 million euros, demand deposits increased by 15 million euros and time deposits decreased by 4 million euros. Deposits from international deposit platform Raisin and other financing decreased by 39 million euros. Compared to Q1 2021, volume of Coop Pank's deposits has increased by 300 million euros (+35%). In an annual financing cost was 0.5%, at the same time last year the financing cost was 0.8%.

In Q1 2022, net loan portfolio of Coop Pank increased by 87 million euros (+9%), reaching 1.04 billion euros. Business loans portfolio showed the fastest growth, increasing the volume by 45 million euros (+10%). Home loans portfolio increased by 32 million euros (+9%), leasing portfolio increased by 7 million euros (+8%) and consumer finance portfolio increased by 3 million euros (+4%). Compared to Q1 2021, total loan portfolio of Coop Pank has grown by 344 million euros (+50%).

In Q1 2022, overdue loan portfolio of Coop Pank remained for the third consecutive quarter at the level of 2%. In an annual comparison, overdue loan portfolio decreased from the level of 3% to 2%.

Impairment costs of financial assets in Q1 2022 were 1.5 million euros, which is 0.7 million euros (+94%) more than in Q1 2021.

Net income of Coop Pank in Q1 2022 was 11.5 million euros, having grown 8% over the quarter and 29% over the year. Operating expenses reached 6.2 million euros in Q1 operating expenses did not increase in the quarterly comparison, operating expenses increased by 21% in the annual comparison.

In Q1 2022, net profit of Coop Pank was 3.5 million euros, which is 6% more than in the previous quarter and 23% more than a year ago. In Q1 2022, cost to income ratio of the bank was 54% and return on equity was 12.3%.

As of 31 March 2022, Coop Pank has 29,862 shareholders, 2 063 (+7%) shareholders have been added over the quarter.

Key events and product developments

In Q1, Coop Pank launched two new products. At the beginning of the quarter, the bank wanted to react quickly and offer relief to the sharp rise in energy prices and started offering its customers an energy loan to pay utility bills with an annual interest rate of 1%. This product brought new customers to the bank and gave borrowers the opportunity to spread the payment of high heating and electricity bills for up to six months. In addition, Coop Pank introduced a new lease payment insurance, which protects private car lessees from payment difficulties in the event of unemployment and incapacity for work.

Coop Pank completed the development within the bank, which made it significantly more convenient and faster for the customer to submit an account statement when applying for a consumer loan. To meet the selffinancing requirement for a home loan, we provide a KredEx guarantee for the purchase of housing in rural areas and for the target group of a large family.

In the first quarter of the year, Coop Pank issued subordinated bonds for 10 million euros at a fixed interest rate of 5% per annum. The successful issue confirms that both customers and investors believe in Coop Pank's growth and want to contribute to it.

Coop Bank, along with Coop's regional cooperatives, provided 1 million euros in Red Cross activities in Ukraine to help those affected by the war.

Margus Rink Chairman of the Management Board

Overview of financial results

Income statement EUR thousand	Q1 2022	Q4 2021	quarterly change	Q1 2021	annual change
Net interest income	10 595	9 824	8%	8 043	32%
Net fee and commissions income	796	902	-12%	648	23%
Other income	101	-50	-302%	202	-50%
Total net operating income	11 492	10 676	8%	8 893	29%
Operating expenses	-6 199	-6 205	0%	-5 123	21%
Impairment costs on financial assets	-1 494	-963	55%	-771	94%
Income tax	-299	-213	40%	-164	82%
Net profit	3 500	3 295	6%	2 835	23%

Business volumes, EUR thousand	Q1 2022	Q4 2021	quarterly change	Q1 2021	annual change
Net loan portfolio	1 040 209	953 396	9%	695 721	50%
Cash and bonds	235 902	258 731	-9%	252 490	-7%
Customer deposits and loans received	1 148 536	1 098 746	5%	848 755	35%
Owner´s equity	115 261	111 743	3%	100 419	15%

Private individuals	Business clients

Ratios (quarterly ratios, expressed on annualised basis)	Q1 2022	Q4 2021	quarterly change	Q1 2021	annual change
Average equity (attributable to parent company), EUR thousand	113 502	110 065	3 437	98 993	14 509
Return on equity ROE % (net profit / average equity)	12,3	12,0	0,3	11,5	0,8
Average total assets, EUR thousand	1 273 830	1 186 242	87 588	922 410	351 420
Return on assets ROA % (net profit / average total assets)	1,1	1,1	0,0	1,2	-0,1
Cash and interest-bearing assets, average, EUR thousand	1 255 611	1 165 999	89 612	906 991	348 620
Net interest margin NIM % (net interest income / interest-bearing assets, average)	3,4	3,4	0,0	3,5	-0,1
Cost / income ratio % (total operating costs / total net operating income)	53,9	58,1	-4,2	57,6	-3,7

At 31.03.2022 the Liquidity Coverage Ratio (LCR) was 153% (31.12.2021 was 202%), the regulatory minimum requirement is 100%.

Key financial indicators in last three years as of the date of the interim report

EUR thousand	31.03.2022	31.03.2021	31.03.2020
Net loan portfolio	1 040 209	695 721	504 119
Customer deposits and loans received	1 148 536	848 755	547 398
Subordinated loans	27 111	17 111	7 111
Owner´s equity	115 261	100 419	90 472
Net interest income	10 595	8 043	6 358
Net fee and commission income	796	648	521
Other income	101	202	238
Total net operating income	11 492	8 893	7 117
Operating expenses	-6 199	-5 123	-4 442
Impairment losses on financial assets	-1 494	-771	-1 214
Income tax	-299	-164	0
Net profit	3 500	2 835	1 461

Capitalisation

Capital base, EUR thousand	31.03.2022	31.03.2022 adjusted *	31.12.2021
Tier 1 capital
Paid-in share capital and share premium	74 416	74 416	74 416
Statutory reserve capital	3 838	3 838	3 165
Retained earnings	30 513	30 513	20 461
Eligible profit of the reporting period	0	2 741	8 012
Other accumulated comprehensive loss	-39	-39	-15
Goodwill accounted for as intangible asset (-)	-6 757	-6 757	-6 757
Intangible assets (-)	-7 707	-7 707	-7 457
Adjustment of value arising from requirements of reliable measurement (-)	-5	-5	-6
Other deductions from Tier 1 capital (-)	-1 494	0	-963
Other transitional adjustments of own funds	157	157	315
Total Tier 1 capital	92 922	97 157	91 171
Subordinated debt	27 000	27 000	17 000
Tier 2 capital	27 000	27 000	17 000
Eligible capital for capital adequacy calculation	119 922	124 157	108 171
Risk-weighted assets RWA
Central government and central banks using standardised approach	0	0	638
Credit institutions, investment companies using standardised approach	2 810	2 810	3 112
Companies using standardised approach	83 529	83 529	65 173
Retail claims using standardised approach	139 183	139 183	130 582
Claims secured by mortgage on real estate using standardised approach	351 632	351 632	325 729
Claims past due using standardised approach	2 713	2 713	3 033
Items subject to particularly high risk using standardised approach	64 534	64 534	59 295
Other assets using standardised approach	13 125	13 125	13 543
Total credit risk and counter-party credit risk	657 526	657 526	601 105
Operational risk using basic indicator approach	59 360	59 360	47 007
Total risk-weighted assets (total risk exposure)	716 886	716 886	648 112
Capital adequacy ratio %	16,73%	17,32%	16,69%
Tier 1 capital ratio %	12,96%	13,55%	14,07%

The audited profit for 2021 was added to regulatory Tier 1 capital according to the decisions of the General Meeting of shareholders held on 13 April 2022.

* Includes unaudited profit for Q1 2022 which will be added to regulatory Tier 1 capital after approval of the interim profit by independent auditor and the Financial Supervisory Authority and from which expected dividend payments have been deducted.

Requirements to own funds:
Core Tier 1 capital ratio	4.50%	core Tier 1 capital / total risk exposure
Tier 1 capital ratio	6.00%	Tier 1 capital / total risk exposure
Total capital ratio (capital adequacy)	8.00%	total capital / total risk exposure
Capital conservation buffer	2.50%	of total risk exposure

Systemic risk buffer was changed 01.05.2020 from 1% to 0%.

By the end of the reporting period, the Group is compliant with all regulative capital requirements. In Q1, to support the growth of business volumes the Bank included subordinated debt in the amount of EUR 10 million in Tier 2 capital.

Consolidated financial statements

Consolidated statement of comprehensive income

EUR thousand	Note	Q1 2022	3 M 2022	Q1 2021	3 M 2021
Interest income calculated using the effective
interest method		11 242	11 242	8 840	8 840
Other similar income		1 163	1 163	936	936
Interest expense		-1 810	-1 810	-1 733	-1 733
Net interest income	3	10 595	10 595	8 043	8 043
Fee and commission income		1 336	1 336	1 095	1 095
Fee and commission expense		-540	-540	-447	-447
Net fee and commission income	4	796	796	648	648
Rental income from investment properties		0	0	2	2
Direct property operating expenses		-1	-1	-9	-9
Net gains/losses from financial assets measured at fair value		-14	-14	-13	-13
Revenue from claims handling		98	98	200	200
Other income		18	18	22	22
Other net income		101	101	202	202
Payroll expense		-3 449	-3 449	-2 879	-2 879
Operating expense		-1 703	-1 703	-1 451	-1 451
Depreciation		-1 047	-1 047	-793	-793
Total operating expense		-6 199	-6 199	-5 123	-5 123
Net profit before impairment costs		5 293	5 293	3 770	3 770
Impairment costs		-1 494	-1 494	-771	-771
Profit before income tax		3 799	3 799	2 999	2 999
Income tax		-299	-299	-164	-164
Net profit for the reporting period	2	3 500	3 500	2 835	2 835
Items that may subsequently be reclassified to income statement:
Financial assets at fair value through other comprehensive income		-24	-24	-1	-1
Comprehensive income for the reporting period		3 476	3 476	2 834	2 834
Net profit attributable to:
Owners of parent company		3 500	3 500	2 835	2 835
Net profit for the reporting period		3 500	3 500	2 835	2 835
Comprehensive income attributable to:
Owners of parent company		3 476	3 476	2 834	2 834
Comprehensive income for the reporting period		3 476	3 476	2 834	2 834
Basic earnings per share (in euros)		0,04	0,04	0,03	0,03
Diluted earnings per share (in euros)		0,04	0,04	0,03	0,03

Consolidated statement of financial position

EUR thousand	Note	31.03.2022	31.12.2021
Assets
Cash and cash equivalents	5	230 938	252 799
Debt securities at fair value through other comprehensive income	6	4 964	5 932
Equity instruments at fair value through other comprehensive		13	13
income
Loans and advances to customers	7,8,9,10	1 040 209	953 396
Other financial assets		604	1 311
Other assets		1 507	927
Assets held for sale		3 726	3 725
Right-of-use assets		6 411	6 625
Tangible assets		2 847	3 034
Intangible assets		7 707	7 457
Goodwill		6 757	6 757
Total assets		1 305 683	1 241 976
Liabilities
Customer deposits and loans received	11	1 148 536	1 098 746
Lease liabilities		6 434	6 639
Other financial liabilities		6 673	1 637
Other liabilities		1 668	6 147
Subordinated debt		27 111	17 064
Total liabilities		1 190 422	1 130 233
Share capital		62 186	62 186
Share premium		12 230	12 230
Statutory reserve capital		3 165	3 165
Retained earnings		37 424	33 924
Other reserves		256	238
		115 261	111 743
		115 261	111 743
		1 305 683	1 241 976

Consolidated statement of cash flows

EUR thousand	Note	3 M 2022	3 M 2021
Cash flows from operating activities
Interest received		12 402	9 790
Interest paid		-1 903	-1 497
Service fee and commission received		1 336	1 095
Service fee and commission paid		-540	-447
Other received income		115	213
Salaries paid		-4 342	-3 813
Other operating expenses paid		-1 703	-1 451
Income tax paid		-213	-108
Cash flows from operating activities before change in assets and liabilities related to operating activities		5 152	3 782
Change in operating assets:
Loan receivables from customers		-86 309	-25 881
Change of statutory reserve in central bank		-1 184	-398
Other assets		138	-754
Change in operating liabilities:
Change in client deposits and loans received		49 930	90 731
Other liabilities		1 364	2 052
Net cash flows from operating activities		-30 909	69 532
Cash flows from investment activities
Acquisition of property, plant and equipment		-894	-1 184
Acquisition of debt securities		-500	0
Sale and redemption of debt instruments		1 465	40
Total cash flows from investment activities		71	-1 144
Cash flows from financing activities
Contribution to share capital		0	0
Issue of subordinated bonds		10 000	10 000
Repayment of principal of lease liabilities		-205	-122
Total cash flows from financing activities		9 795	9 878
Effect of exchange rate fluctuations to cash and cash equivalents		-1	2
Change in cash and cash equivalents		-21 044	78 268
Cash and cash equivalents at the beginning of period		241 286	164 439
Cash and cash equivalents at the end of period	5	220 242	242 707
Cash and cash equivalents balance is comprised of:		220 242	242 707
Cash on hand		28 987	26 545
Demand deposits in central bank		177 132	208 753
Demand and short-term deposits in credit institutions and other financial institutions		14 123	7 409

Consolidated statement of changes in equity

EUR thousand	Share capital	Share premium	Statutory reserve capital	Other reserves	Revalu ation reserve	Retained earnings	Total equity
Equity as at 31.12.2020	61 756	12 061	2 802	142	-18	20 824	97 567
Share options	0	0	0	18	0	0	18
Net profit 01.01. 31.03.2021	0	0	0	0	0	2 835	2 835
Other comprehensive income 01.01. 31.03.2021	0	0	0	0	-1	0	-1
Total comprehensive income	0	0	0	0	-1	2 835	2 834
Equity as at 31.03.2021	61 756	12 061	2 802	160	-19	23 659	100 419
Contribution to share capital	430	169	0	-113	0	0	486
Change in reserves	0	0	363	0	0	-363	0
Share options	0	0	0	206	0	0	206
Net profit	0	0	0	0	0	10 628	10 628
Other comprehensive income	0	0	0	0	4	0	4
Total comprehensive income	0	0	0	0	4	10 628	10 632
Equity as at 31.12.2021	62 186	12 230	3 165	253	-15	33 924	111 743
Share options	0	0	0	42	0	0	42
Net profit 01.01. 31.03.2022	0	0	0	0	0	3 500	3 500
Other comprehensive income 01.01. 31.03.2022	0	0	0	0	-24	0	-24
Total comprehensive income	0	0	0	0	-24	3 500	3 476
Equity as at 31.03.2022	62 186	12 230	3 165	295	-39	37 424	115 261

Notes to consolidated financial statements

Note 1 Accounting principles

approved by the EU. The accounting principles used in interim report are in conformity with accounting principles used in Annual Report 2021.

Subsidiaries are consolidated on a line-by-line basis, eliminating the intercompany transactions, receivables and liabilities, income and expense. The definition of group according to the Regulation (EU) No 575/2013 of the European Parliament and of the Council matches that of IFRS.

All figures in financial statements are in thousands of euros unless noted otherwise.

Structure of the Group	Country	Activity	Holding
Coop Pank AS	Estonia	banking	parent company
Coop Liising AS	Estonia	leasing	100%
Coop Finants AS	Estonia	consumer financing	100%
Coop Kindlustusmaakler AS	Estonia	insurance brokerage	100%
CP Varad AS	Estonia	real estate management	100%
SIA Prana Property	Latvia	real estate management	100%

Note 2 Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the main operating decision-maker. The main decision-maker, responsible for resource distribution and evaluation of the activities of the segments, is the management board of the bank.

The Group divides its business into segments based on both the legal structure and the customer-specific distribution within the Bank. According to the legal structure, the Group has a consumer loan and leasing segment that provides consumer loans to private customers and leasing products to both private and corporate customers, respectively. Consumer financing segment earns interest incomes from lending and fee commissions from issuing hire-purchase cards. Leasing segment earns interest income from lending. At the end of 2019 the new segment insurance brokerage was added, which earns revenues on intermediating insurance contracts.

Due to the Bank's customer-based division, the Group owns corporate banking (legal entities) and retail banking (private individuals) segments. Both segments offer money transferring products and loan products to customers and gather deposits. The segments earn interest income from lending and commissions fees from settlement of payments and bank card transactions.

Segments are the basis for regular monitoring of business results by the Group's management and supervisory boards, and separate financial data are available for the segments. According to the group's structure, the group also divides the corporate banking and retail banking segments into more detailed business lines of loans and everyday banking (deposits, settlements). The Group also uses the division of business lines for planning and budgeting. The Management Board of the Group has been appointed as the chief decision maker for assessing financial allocations and the profitability of business.

Revenue reported by a segment consists of revenue from external customers and additional interest income or interest expense on inter-segment borrowing, which is based on the internal transfer pricing model in the Group and is shown as elimination in the tables below. The Group does not have any customers whose income would account for more than 10% of the respective type of income. All interest income is earned in Estonia. The geographical breakdown of commission fees is shown in Note 4.

Segment profits, 3M 2022, EUR thousand	Corporate banking	Retail banking	Consumer financing	Leasing	Other*	Elimi nation	Total
Interest income	5 948	3 299	3 067	1 061	190	-1 160	12 405
Incl. external income	5 249	2 992	3 067	1 061	36	0	12 405
Incl. internal income	699	307	0	0	154	-1 160	0
Interest expense	-1 258	-1 080	-202	-289	-141	1 160	-1 810
Net interest income	4 690	2 219	2 865	772	49	0	10 595
Commission income	323	493	370	56	94	0	1 336
Commission expense	-124	-340	-55	-2	-19	0	-540
Net commission income	199	153	315	54	75	0	796
Other net income	6	17	75	17	-14	0	101
Net income	4 895	2 389	3 255	843	110	0	11 492
Total operating expense	-1 744	-2 241	-1 274	-690	-250	0	-6 199
Profit before credit losses and income tax	3 151	148	1 981	153	-140	0	5 293
Impairment losses	-868	12	-576	-62	0	0	-1 494
Income tax expense	-299	0	0	0	0	0	-299
Net profit	1 984	160	1 405	91	-140	0	3 500

Assets and liabilities as at 31.03.2022 EUR million	Corporate banking	Retail banking	Consumer financing	Leasing	Other*	Elimi nation	Total
Loan portfolio	655	396	69	106	263	-449	1 040
Other assets	109	94	27	25	11	0	266
Total assets	764	490	96	131	274	-449	1 306
Total liabilities	711	447	89	120	272	-449	1 190

Treasury, subsidiaries CP Varad, Prana Property, Coop Kindlustusmaakler.

Segment profits, 3M 2021, EUR thousand	Corporate banking	Retail banking	Consumer financing	Leasing	Other*	Elimi nation	Total
Interest income	3 901	2 452	3 085	906	418	-986	9 776
Incl. external income	3 451	2 312	3 085	906	22	0	9 766
Incl. internal income	449	140	0	0	396	-986	0
Interest expense	-903	-914	-236	-285	-381	986	-1 733
Net interest income	2 998	1 538	2 849	621	37	0	8 043
Commission income	268	394	362	33	38	0	1 095
Commission expense	-97	-285	-62	-3	0	0	-447
Net commission income	171	109	300	30	38	0	648
Other net income	49	51	93	28	-19	0	202
Net income	3 218	1 698	3 242	679	56	0	8 893
Total operating expense	-1 260	-1 951	-1 117	-568	-227	0	-5 123
Profit before credit losses and income tax	1 958	-253	2 125	111	-171	0	3 770
Impairment losses	-397	-17	-428	71	0	0	-771
Income tax expense	-164	0	0	0	0	0	-164
Net profit	1 397	-270	1 697	182	-171	0	2 835

Assets and liabilities as at 31.03.2021, EUR million	Corporate banking	Retail banking	Consumer financing	Leasing	Other*	Elimi nation	Total
Loan portfolio	294	278	66	85	219	-246	696
Other assets	96	104	36	32	11	0	279
Total assets	390	382	102	117	230	-246	975
Total liabilities	352	343	92	104	229	-246	874

CP Varad (prev. Martinoza), Prana Property, Coop Kindlustusmaakler.

Note 3 Net interest income

Interest income	Q1 2022	3M 2022	Q1 2021	3M 2021
Interest income calculated using the effective interest method:
Loans to legal entities	5 124	5 124	3 085	3 085
Consumer loans and hire-purchase loans	3 067	3 067	3 420	3 420
Loans to private individuals	2 992	2 992	2 312	2 312
Bonds	59	59	22	22
Interest income on liabilities	0	0	1	1
	11 242	11 242	8 840	8 840
Other similar interest income:
Leasing	1 163	1 163	936	936
Total interest revenues	12 405	12 405	9 776	9 776
Customer deposits and loans received	-1 295	-1 295	-1 442	-1 442
Subordinated debt	-287	-287	-122	-122
Interest expense on assets	-208	-208	-166	-166
Lease liabilities	-20	-20	-3	-3
Total interest expenses	-1 810	-1 810	-1 733	-1 733
Net interest income	10 595	10 595	8 043	8 043

Note 4 Net fee and commission income

Fee and commission income	Q1 2022	3M 2022	Q1 2021	3M 2021
Fees from consumer loans	380	380	362	362
Monthly account fees and transaction fees	323	323	276	276
Fees from cards	274	274	186	186
Insurance brokerage commission	77	77	0	0
Foreign exchange transactions	15	15	8	8
Other fee and commission income	267	267	263	263
Total fee and commission income	1 336	1 336	1 095	1 095
Expenses related to cards	-396	-396	-319	-319
Transaction costs	-53	-53	-46	-46
Other fee and commission expense	-91	-91	-82	-82
Total fee and commission expense	-540	-540	-447	-447
Net fee and commission income	796	796	648	648

In Q1 2022, the Group earned 86% of fee and commission income from Estonian residents and 14% from residents of other countries (mostly EU countries). In Q1 2021, 88% of fee and commission income was earned from Estonian residents and 12% from residents of other countries. All fee and commission income are recognized point in time.

Note 5 Cash and cash equivalents

	31.03.2022	31.12.2021
Cash	28 987	27 192
Mandatory reserve at the central bank *	10 696	9 512
Demand deposits at central bank	177 132	200 670
Demand deposits at credit institutions and other financial institutions	14 123	13 424
Term deposits at credit institutions *	0	2 001
Total	230 938	252 799

* Not included in cash and cash equivalents in the consolidated statement of cash flows.

Note 6 Financial investments

	31.03.2022	31.12.2021
Government debt securities	0	1 277
Credit institutions	2 338	2 329
Debt securities of other non-financial companies	2 626	2 326
Total of debt securities	4 964	5 932
Shares of other non-financial companies	13	13
Total of equity instruments	13	13
Total of financial investments	4 977	5 945

All debt securities and equity instruments in amount of 13 thousand euros are recognized at fair value through changes in other comprehensive income.

Note 7 Loans and advances to customers

	31.03.2022	31.12.2021
Total receivables from private individuals	522 607	485 882
incl. consumers loans	72 691	70 380
incl. lease financing	53 483	50 903
incl. mortgage loans and other loans	396 433	364 599
Total receivables from legal entities	526 807	476 341
incl. lease financing	63 797	57 844
incl. other loans to legal entities	463 010	418 497
Total receivables	1 049 414	962 223
Loss allowances of loans and advances	-9 205	-8 827
Total	1 040 209	953 396

Note 8 Loss allowances of loans and advances

	31.03.2022	31.12.2021
Balance at the beginning of the reporting period	-8 827	-8 743
Allowances during the reporting period	-1 507	-2 440
Derecognized during reporting period	1 129	2 356
Balance of allowance at the end of the reporting period	-9 205	-8 827

Note 9 Allocation of past due loans

	31.03.2022			31.12.2021
	Unsecured	Secured loans	Loans to	Unsecured	Secured loans	Loans to
	loans to private	to private	legal	loans to private	to private	legal
	individuals	individuals	entities	individuals	individuals	entities
1-30 days	3 473	5 258	7 520	3 519	3 690	9 511
31-60 days	821	677	731	772	598	451
61-90 days	419	188	184	440	132	8
over 90 days	1 250	91	118	1 919	283	122
Total	5 963	6 214	8 553	6 650	4 703	10 092

Note 10 Financial assets and liabilities by residual maturity

Undiscounted cash flows by residual maturity

31.03.2022	Up to 3 months	3-12 months	1-5 years	Over 5 years	Total
Assets
Cash and cash equivalents	230 938	0	0	0	230 938
Debt securities at fair value	0	813	1 813	2 338	4 964
Equity instruments	0	0	0	13	13
Loans and advances to customers	61 590	152 385	653 962	425 574	1 293 511
Other financial assets	583	0	21	0	604
Total financial assets	293 111	153 198	655 796	427 925	1 530 030
Liabilities
Customer deposits and loans received	683 123	370 519	89 166	7 779	1 150 587
Lease liabilities	219	632	2 881	3 077	6 809
Other financial liabilities	5 482	1 191	0	0	6 673
Subordinated debt	386	1 160	6 185	27 521	35 252
Total financial liabilities	689 210	373 502	98 232	38 377	1 199 321
Off-balance sheet liabilities
Undrawn lines of credit and overdraft facilities	123 162	0	0	0	123 162
Financial guarantees	16 991	0	0	0	16 991
Total on-balance / off-balance-sheet liabilities	829 363	373 502	98 232	38 377	1 339 474
Duration gap of financial assets and financial liabilities	-536 252	-220 304	557 564	389 548	190 556

31.12.2021	Up to 3 months	3-12 months	1-5 years	Over 5 years	Total
Assets
Cash and cash equivalents	252 799	0	0	0	252 799
Debt securities at fair value	1 277	202	2 124	2 329	5 932
Equity instruments	0	0	0	13	13
Loans and advances to customers	49 253	150 597	600 032	392 523	1 192 405
Other financial assets	976	0	21	314	1 311
Total financial assets	304 305	150 799	602 177	395 179	1 452 460
Liabilities
Customer deposits and loans received	648 424	342 412	102 092	8 395	1 101 323
Lease liabilities	226	647	2 911	3 251	7 035
Other financial liabilities	1 637	0	0	0	1 637
Subordinated debt	260	786	4 185	19 999	25 230
Total financial liabilities	650 547	343 845	109 188	31 645	1 135 225
Off-balance sheet liabilities
Undrawn lines of credit and overdraft facilities	124 838	0	0	0	124 838
Financial guarantees	16 553	0	0	0	16 553
Total on-balance / off-balance-sheet liabilities	791 938	343 845	109 188	31 645	1 276 616
Duration gap of financial assets and financial liabilities	-487 633	-193 046	492 989	363 534	175 844

Note 11 Customer deposits and loans received

Due to customers	31.03.2022	31.12.2021
Private individuals	449 212	477 383
Legal entities	699 324	621 363
Total	1 148 536	1 098 746
Demand deposits	578 152	518 122
Term deposits	561 856	571 452
Special purpose loans	8 528	9 172
Total	1 148 536	1 098 746

Note 12 Contingent liabilities

	31.03.2022	31.12.2021
Financial guarantees	16 991	16 553
Credit lines and overdrafts	123 162	124 838
Total	140 153	141 391

Note 13 Related parties

Related parties are:

• a shareholder of significant influence and companies that are part of its group;
• management of the group: i.e. members of the Management Board and the Supervisory Board of parent company, head of internal audit and entities controlled by them;
• individuals, who have equal economic interest as management, and entities associated to them.

The terms of the loans issued to related parties do not differ from the loans issued to other customers regarding interest rates. Transactions with related parties are based on the price list and/or are carried out at market value. Maximum termination benefits payable to members of the management board on a contingent basis is 237 thousand euros (31.12.2021: 237).

Balances	31.03.2022	31.12.2021
Shareholders:
Loans	0	0
Deposits	10 228	8 972
Members of the Management Board and Supervisory Board, and persons and entities associated with them:
Loans	796	705
Deposits	600	1 308
Transactions	31.03.2022	31.12.2021
Shareholders:
Interest expense	1	16
Members of the Management Board and Supervisory Board, and persons and entities associated with them:
Interest income of the reporting period	7	51
Interest expense of the reporting period	1	12
Other goods and services sold	0	5
Compensation paid to members of the Management Board and Supervisory Board	258	636

Note 14 Basic earnings and diluted earnings per share

In order to calculate basic earnings per share, net profit attributable to owners of the parent has been divided by the weighted average number of shares issued. Diluted earnings per share comes from the share options granted to key employees.

	Q1 2022	3 M 2022	Q1 2021	3 M 2021
Profit attributable to the owners of the parent (in th. euros)	3 500	3 500	2 835	2 835
Weighted average number of shares (in th. of units)	91 254	91 254	90 624	90 624
Basic earnings per share (euros)	0,04	0,04	0,03	0,03
Adjustments for calculation of diluted earnings per share share options (in th. of units)	1 675	1 675	1 530	1 530
Weighted average number of shares used for calculating the diluted earnings per share (in th. of units)	92 929	92 929	92 154	92 154
Diluted earnings per share (euros)	0,04	0,04	0,03	0,03

Shareholders, Supervisory Board and Management Board of Coop Pank AS

As at 31.03.2022 shareholders with holding over 5% are:

Coop Investeeringud OÜ	24,81%
Andres Sonn	8,24%
CM Capital OÜ	5,19%

In addition, the member cooperatives of Coop Eesti Keskühistu hold the total of 17,93% of the total amount of shares, however, separately none of them holds over 5%.

Members of Supervisory Board hold 73 thousand shares of Coop Pank and Members of Management Board hold 635 thousand shares of Coop Pank, which in total accounts for 0,78% of the total amount of shares.

Members of the Supervisory board:

Alo Ivask (Chairman), Viljar Arakas, Jaan Marjundi, Roman Provotorov, Raul Parusk, Silver Kuus

Members of the Management board:

Margus Rink (Chairman), Heikko Mäe, Arko Kurtmann, Rasmus Heinla, Paavo Truu (mandate is valid since 16.02.2022)

Statement of the Management Board of Coop Pank AS

The Management Board of Coop Pank is of the opinion, that information in this interim report, consisting of the management report and financial reports, is in conformity with requirements to interim reports and gives a true and fair view of the financial condition and economic results of Coop Pank Group, the presented data and additional information is true and comprehensive. Current interim report is not audited.

20.03.2022

Margus Rink Chairman of the Management Board

Paavo Truu Heikko Mäe

Member of the Management Board Member of the Management Board

Arko Kurtmann Rasmus Heinla Member of the Management Board Member of the Management Board

Contacts 669 0966

klienditugi@cooppank.ee www.cooppank.ee

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