Coop Pank AS: A Beacon of Stability and Growth in Estonia's Financial Landscape

As we approach the end of 2024, Coop Pank AS, one of Estonia's leading universal banks, is set to hold an investor webinar to introduce its results for the fourth quarter and the entire year. This webinar, scheduled for February 6, 2025, will provide a comprehensive overview of the bank's performance and its strategic vision for the future.

Coop Pank AS, founded on Estonian capital, has been a driving force in the country's financial sector, consistently increasing its market share in loans issued to Estonian households and businesses, as well as in deposits raised from them. This growth can be attributed to the bank's commitment to boosting Estonian companies and helping people make their dreams come true in every corner of Estonia – in the countryside as well as in the cities.



One of the key factors contributing to Coop Pank's success is its designation as a systemically important credit institution by Eesti Pank. This designation obligates Coop Pank to maintain an additional systemic importance buffer of 0.5 percent, further strengthening its capitalization and enhancing its resilience in potential crises. This additional capital buffer, combined with Coop Pank's consistent market share growth, has contributed to the bank's solid financial performance and net profit of 2.0 million euros in November 2024.



Coop Pank's customer base has grown by 14% over the past year, with the number of clients reaching 206,000 and the number of active clients reaching 98,400 by the end of November 2024. This growth can be attributed to several factors, including the increasing number of local individuals and businesses actively using Coop Pank's services, the bank's consistent market share growth, its designation as a systemically important credit institution, and its expansion of services and offerings.

The bank's loan portfolio has also grown significantly, particularly in home loans, business loans, and leasing portfolios. This growth can be attributed to the relatively rapid decline in interest rates in the market, which has led to a decrease in deposit interest rates but also reduces clients' loan payments and encourages borrowing. Additionally, Coop Pank's designation as a systemically important credit institution has further strengthened its capitalization and enhanced its ability to withstand and recover from potential crises.



In conclusion, Coop Pank AS's designation as a systemically important credit institution has not only strengthened its capitalization and enhanced its resilience in potential crises but has also contributed to its solid financial performance and net profit in November 2024. The bank's commitment to boosting Estonian companies and helping people make their dreams come true, combined with its consistent market share growth and expansion of services, has driven the growth in its customer base and loan portfolio. As Coop Pank AS prepares to introduce its results for the fourth quarter and the entire year, investors can expect a positive outlook and a continued focus on stability and growth in Estonia's financial landscape.