The third quarter profits Estonian capital-based Coop Pank increased by 31 percent on year, reaching €1.52 million.
Coop Bank earned a profit of €1.52 million within the third quarter of 2019, which is 31 percent more than during the same period last year. In the third quarter, the bank significantly increased the amount of loans issued and deposits made, as well as acquired a record number of clients, according to a bank press release.
The number of clients increased by 4,600 during the third quarter, and as of the end of September, Coop Pank had 56,300 clients in total, indicating a growth of 33 percent on year.
The bank's loan portfolio, meanwhile, grew by €39 million. All of its financing-related lines of business contributed to this growth, including mortgages, consumer loans, business loans and leasing. By the end of the third quarter, the bank's loan portfolio reached €418 million, up 37 percent on year.
The amount of deposits grew by €69 million during the same period, reaching a total of €478 million by the end of the third quarter, indicating growth of 30 percent on year.
In the third quarter of 2019, Coop Pank earned a profit of €1.52 million. The bank's nine-month profit was €3.9 million, up 27 percent on year. The greatest contributor to profit growth was greater interest income resulting from the growth of its loan portfolio.
Coop Pank board chairman Margus Rink said that the bank is steadily displaying rapid growth for the third year in a row.
"Coop Pank continues to strengthen its position on the Estonian Banking market," Rink said. "The factors behind our growth are the bank's ever-increasing brand recognition as well as the general trend of preferring domestic banks, which is becoming increasingly popular with clients. We can also see companies are increasingly more interested because, as a local bank, ours can process their expansion plans and make financing decisions faster. What also draws business clients' attention to us is the interest paid on clients' temporarily available funds."
Bank hopes to list before year end
At the end of May, the supervisory bank of Coop Pank commissioned the bank's management board to begin preparations for the public listing of the bank's shares.
"Preparations for the public listing of our shares are underway according to schedule, and we are currently working on bringing Coop Pank's shares to the Tallinn Stock Exchange (TSE) before the end of the year," the board chairman said. "Nonetheless, the specific issue date may be affected by the global economic situation and how stock markets respond to it."
Based on Estonian capital, Coop Pank is one of five universal banks operating in Estonia. It has 15 branch offices and 28 banking points throughout the country. As of the end of September, 56,300 clients were using the bank for their daily banking. The primary shareholder of the bank is domestic retail chain Coop Eesti, which comprises 330 stores.
Editor: Aili Vahtla