Coop Pank announces €20 million net profit for 2022

Coop Pank building in Central Tallinn.
Coop Pank building in Central Tallinn. Source: Siim Lõvi/ERR

Estonian bank Coop Pank has announced its financial results for 2022. For the sixth consecutive year, Coop Pank increased its business volumes by nearly 40 percent making a net profit of €20.4 million.

In 2022 the number of Coop Pank customers increased by 32,400 (+28 percent) to a total of 147,000 by the end of the year.

Of these, 66,800 were active users of the bank's services, a figure which rose by 15,800 (+31 percent) over the year. Of the bank's new customers, 29,400 were private customers and 3,000 business customers.

The number of new customers using the bank's services has increased in each of the previous six years. In 2017, the bank attracted 5,000 new customers, with a further 9,000 added in 2018. In 2019, Coop Bank served 19,000 new customers, with a further 23,000 and 27,900 added to that in 2020 and 2021 respectively.

At the end of 2022, customer deposits at Coop Pank amounted to €1.5 billion, an increase of €409 million (+37 percent) over the course of the year. Demand deposits increased by 39 percent over the year, and time, or term, deposits rose by 36 percent. The bank's refinancing costs remained at 0.7 percent, similar to the previous year. The bank's market share for deposits increased from 4 percent to 5.5 percent over the year.

 Coop Pank's loan portfolio amounted to €1.3 billion at the end of 2022, a €347 million (+36 percent) increase since the end of 2021. The bank's commercial loan portfolio grew by €154 million (+36 percent), while its domestic loan portfolio rose by €143 million (+39 percent). Coop Pank's leasing portfolio was also up by €32 million (+32 percent) on year, and its consumer finance portfolio increased by €19 million (+28 percent). Coop Pank therefore had a 5.5 percent market share when it comes to bank loans at the end of 2022, up from 4.5 percent a year earlier.

The bank's net revenue for 2022 reached €55 million, a €15.4 million increase (+39 percent) from twelve months earlier. The bank's operating expenses totalled €27 million, which was up €4.7 million (+21 percent) on year. The largest share of this went on personnel, IT and marketing costs.

Coop Pank's net profit increases by 51 percent on year to €0.4 million. The bank's cost income ratio (CIR) fell from 57 percent to 50 percent over the year, while its return on equity (ROE) rose from 12.9 percent to 16.8 percent.

According to Margus Rink, chair of the bank's management board, despite the challenging economic environment, Coop Pank managed to grow its business volumes by nearly 40 percent for the sixth consecutive year while also continuing to implement its growth strategy.

"Last year we met all the targets we set for ourselves as well as the promises we made to investors. Our strategic goal is to increase the bank's market share in Estonia to 10 percent by the beginning of 2027, to increase the loan portfolio to at least €2 billion, and to reach a position where one in every ten Estonians settles their accounts with Coop Pank - that means at least 150,000 active customers," said Rink.

Rink also pointed out demand for Coop Pank's financial services remained high throughout most of the year, despite the impact of Russia's war in Ukraine, supply chain difficulties and inflation, all of which increased uncertainty about the future for both private customers and companies. It was only in the fall, that the level of demand began to drop.


On December 31, 2022, Coop Pank had 36,045 shareholders, an increase of 8,200 on year.


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Editor: Michael Cole

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