Coop Pank — Investor Presentation 2021

Oct 20, 2021

Coop Pank Group 2021 Q3 unaudited results

Business volumes in quarterly comparison

Deposits

Results of Q3 2021 – compared to Q3 2020

• Key indicators in year on year comparison Revenues +2.3m€ (+29%)
• Net interest increased +2.0m€ as loan portfolio grew by 255m€
• Service fees +0.2m€ as no of clients and client activity increased
• Operating expenses +1.1m€ (+22%)
  • Payroll expenses
  • IT costs incl. amortization of non-tangible assets
• Impairment costs -99%
  • Q3 2021 impairments were low due to high quality of loan portfolio and faster repayments of consumer loans (pension reform)
• Net profit +114%

	Q3 2021Q3 2020		Year on Year change
Net operating income ('000 €)	10 327	7 988	+2 339	+29%
Interest	9 345	7 353	+1 992	+27%
Service fees and commissions	752	558	+194	+35%
Other	230	77	+153	+199%
Operating expenses	-5 788	-4 726	-1 062	+22%
Operating profit	4 539	3 262	+1 277	+39%
Impairment costs	-10	-1 139	+1 129	-99%
Profit before income tax	4 529	2 123	+2 406	+113%
Income tax	-227	-111	-116	+105%
Net profit	4 302	2 012	+2 290	+114%
Net loan portfolio (m€)	854	599	+255	+43%
Deposits and loans received	987	688	+299	+43%
Equity	108	94	+14	+15%
ROE	16.2%	8.6%	+7.6%
Net interest margin (NIM)	3.5%	4.0%	-0.4%
Cost of financing	0.7%	0.9%	-0.2%
Cost / income ratio (CIR)	56%	59%	-3.1%
Capital adequacy ratio	16.8%	18.9%	-2.1%

Results of Q3 2021 – compared to Q2 2021

• • Net interest +1.0m€ (+12%), loan portfolio +82m€
• Operating expenses +0.5m€ (+8%)
• Payroll expenses
• IT costs incl. amortization of non-tangible assets
• Impairment costs -99%
• Net profit +42%

Key indicators in quarterly comparison			•	Revenues +1.0m€ (+11%)
	Q3 2021Q2 2021		Quarterly change
Net operating income ('000 €) Interest Service fees and commissions Other Operating expenses Operating profit Impairment costs Profit before income tax Income tax Net profit	10 327 9 345 752 230 -5 788 4 539 -10 4 529 -227 4 302	9 341 8 325 783 233 -5 336 4 005 -753 3 252 -220 3 032	+986 +1 020 -31 -3 -452 +534 +743 +1 277 -7 +1 270	+11% +12% -4% -1% +8% +13% -99% +39% +3% +42%	• •	• Payroll expenses Impairment costs -99% Net profit +42%
Net loan portfolio (m€) Deposits and loans received Equity	854 987 108	773 891 104	+82 +95 +4	+11% +11% +4%
ROE Net interest margin (NIM) Cost of financing Cost / income ratio (CIR) Capital adequacy ratio	16.2% 3.5% 0.7% 56% 16.8%	11.9% 3.4% 0.8% 57% 18.9%	+4.3% +0.1% -0.1% -1.1% -2.1%

Loan portfolio growth driven by business loans

• Net loan portfolio Quarterly growth of loan portfolio +82m€ (11%)
• Business loans +57m€ (+19%)
• Private mortgage loans +28m€ (+9%)
• Leasing +2m€ (+3%)
• Consumer loans -5m€ (-7%)
• Gross interest of portfolio is decreasing
  • Increased competition
  • 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

• Past due portfolio only 2% in Q3 2021
• Amount of payment holidays remains at a low level (ca 4m€ Q3 2021: 0.4% of total portfolio)
• Credit risk cost ratio 0.3% in Q3 2021 (Q2 2021 0.4%; Q1 2021 0.5%)

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%	11%	10%	11%	9%
	7.7	8.0	6.9	7.7	5.7
	2.3 5.4	2.7 5.3	2.5 4.5	2.5 5.2	2.0 3.7
	- 4.6	- 4.7	- 4.5	- 4.8	- 4.0
	Q3 2020	Q4	Q1 2021	Q2	Q3

Amount of deposits increased, cost is decreasing

• Deposits Deposits grew by 95m€ (11%) compared to Q2 2021
• +77m€ from business clients (+42m€ demand deposits, +35m€ term deposits)
• +25m€ from private clients (+22m€ demand deposits, +3m€ term deposits)
• -7m€ impact from Raisin platform and other financial institutions
• Proportion of demand deposits in total deposits at 44% (44% in Q2 2021; 34% in Q3 2020)
• Total cost of financing (0.7%) decreased in Q3 due to increased amount of domestic deposits with lower interest rate

We are growing client base and market share

• Market share and number of bank clients 7 300 new clients with bank account in Q3 2021 (+7 000 in Q2 2021; +5 400 in Q3 2020)
• +6 700 private clients

• +600 business clients

• Bank's market share changed in Q3 2021*

• Market share in loan portfolio 3.8% => 4.1%
• Market share in deposits 3.6% => 3.5%

No of customers (thousand)

Capital base supports growth plans

Performance indicators

• • Revenues +1.0m€ (+11%)
• Costs +0.5m€ (+8%)
• Increased ROE
• Strong monthly net profits in Q3 2021
• Exceptionally low impairment cost in Q3 2021

Brand awareness and preference as a financial partner

Summary: Q3 2021 results

7 300 new clients 4.3m€ profit

• Loan portfolio grew by 82m€ in Q3 (+43% YoY)
• Deposits increased by 95m€ in Q3 (+43% YoY)
• 7 300 new customers (+35% YoY) The Bank now has a total of 108 000 clients with bank account
• Net profit 4.3m€ (+114% YoY)

Shareholders

No of Coop Pank shareholders TOP shareholders

No of shareholders

Shareholder distribution of Coop Pank as at 30.09.2021

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