Coop Pank, an Estonian bank, reported a profit of €28.7 million for the past year, an 11% decrease compared to the previous year, the bank announced.
The bank’s loan portfolio grew by 19% to over €2.1 billion, even as its customer base increased by 9%.
Total income for the year decreased by 3% to €79.4 million. Interest income accounted for €73.3 million of that total, a 6% decrease year-over-year. Operating expenses rose by 2% to €41.5 million, and the bank’s return on equity decreased from 16.2% to 12.9%.
Coop Pank’s loan portfolio increased by €340 million to €2.11 billion during the year, surpassing the €2 billion mark for the first time. This growth was driven by a 27% increase, or €207 million, in business loans and a 17% increase, or €125 million, in mortgage loans. The bank’s market share of loans increased from 6.5% to 7.1% over the year.
Deposits at the bank increased by 9% to €2.05 billion. The bank gained 19,000 customers during the year, bringing the total to 227,000 at year-end. The number of active customers reached 108,000, a 9% increase. As of December, Coop Pank had 32,800 shareholders.
According to Coop Pank’s Chairman of the Board, Arko Kurtman, the decline in profit was primarily due to the economic environment and falling interest rates, which could not be offset by increased transaction volumes. “Although we anticipated a decrease in profit in 2024 and 2025, our goal is to return to profit growth in 2026,” Kurtman stated.
The bank’s strategic goal is to increase its loan market share in Estonia to 10% by the end of 2030, double its profit in the next five years, and reach a profit of at least €60 million by 2030.
Coop Pank shares are listed on the official list of the Nasdaq Tallinn Stock Exchange. You can find more information about the bank’s financial results and annual reports on their investor relations page.
