This July, the publicly traded, Estonian capital-based Coop Pank posted a net profit of €3.4 million; over the first seven months of 2023, its net profit went up 131 percent on year to total €23 million, the bank announced Friday.
Compared with the first seven months of 2022, the bank's net income has increased by 73 percent, while expenses have grown by 26 percent on year, the bank said in a market announcement.
Last month, the bank's number of clients increased by 2,600 and number of active clients by 1,200. By the end of July, the Coop Pank had a total of 169,900 clients, including 77,400 active clients, indicating a growth in the customer base of 28 percent on year.
While the volume of deposits attracted from international platforms decreased by €18 million, the volume of the bank's customer deposits increased by €22 million, reaching €1.78 billion by the end of the month, including corporate customer deposits going up by €39 million and private customer deposits by €1 million. Over the year, the volume of bank deposits has gone up 37 percent.
Coop Pank's loan portfolio, meanwhile, increased by €25 million over the month, reaching €1.48 billion by the end of July. Compared with the previous month, business loans increased by €15 million, home loans by €9 million and leasing by €1 million, while the consumer financing loan portfolio remained steady. Over the year, the bank's loan portfolio has grown by 27 percent.
Last month, Coop Pank's loan impairment cost was €800,000. Its return on equity stood at 23.5 percent, while the cost-income ratio stood at 39 percent.
Commenting on July's results, Coop Pank CFO Paavo Truu noted that Estonia saw a general slowdown in inflation as well as in the growth of food and durable goods prices.
"Although the Euribor remains high, households that have kept their jobs are doing well in managing their income and expenses," Truu said. ""This is also reflected in our home loan and leasing portfolio, which showed solid growth in July. The business loans portfolio also saw strong growth in July."
In addition to consumption and investments, both households and companies in Estonia continue to have resources for deposits as well, he continued.
"The current good interest environment motivates [one] to find the best return on [their] money, and that is why a part of demand deposits is moving to term deposits — which also gives banks better opportunities for capital management in the long term," the CFO added.
Based on Estonian capital, Coop Pank is one of five universal banks operating in Estonia. The strategic shareholder of the bank is domestic retail chain Coop Eesti, which comprises 320 stores.
Editor: Aili Vahtla