Coop Bank increased its business by 40 percent, an increase for the third year in a row, with a profit of €5.5 million the company's preliminary financial results for 2019 show.
Coop Bank's loan portfolio grew to €460 million in 2019, an increase of €131 million or 40 percent over the year. Car leasing and business loans showed the largest growth, increasing the portfolio volume by 60 percent and 50 percent, respectively. The home loan portfolio grew by 29 percent and the consumer finance portfolio by 25 percent over the year. The market share of the Bank's loans was 2.3 percent at the end of 2019, up 0.6 percentage points over the year.
The quality of the loan portfolio remained high. Provisions for future loan losses were made in 2019 in sync with the growth of the loan portfolio, or 39 percent more than in 2018.
At the end of 2019, Coop Bank's deposits totaled €507 million, an increase of €122 million or 32 per cent. The bank's financing costs increased from 0.8 percent to 1 percent. The market share of the Bank's deposits increased from 2.2 percent to 2.6 percent.
Coop Bank's profit for 2019 was €5.5 million, up 16 percent on the previous year. The bank's revenue grew 20 percent year-on-year. The biggest contributor to revenue growth was net interest income, which increased by 23 percent.
The bank's operating expenses increased by 20 percent which mainly came from IT and personnel costs.
The bank's return on equity was at 10 percent and the cost-to-income ratio remained at 69 percent.
By the end of the year, the number of Coop Bank customers had grown to 63,800.
Chairman Margus Rink said: "2019 was a successful year for Coop Bank, we met all our targets. We were able to increase our business volumes by 40 percent for the third year in a row, and at the same time to grow our profits."
Editor: Helen Wright