Coop Pank unaudited financial results for Q2 2025

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By the end of the Q2 2025, Coop Pank had 218,000 customers, increased by 5,000 customers in the quarter (+2%) and by 22,000 in the year (+11%). The bank had 103,600 active customers, increased by 1,800 (+2%) in the quarter and by 8,300 (+9%) in the year.

In Q2 2025, volume of deposits in Coop Pank decreased by 98 million euros (-5%), reaching total of 1.81 billion euros. The deliberate reduction of deposits is a result of the successful covered bond issuance carried out in the first quarter. Deposits from private clients increasing by 0.4 million euros: demand deposits decreased by 0.4 million euros and term deposits increased by 0.8 million euros. Deposits from domestic business customers decreased by 78 million euros: demand deposits decreased by 10 million euro and term deposits decreased by 68 million euros. Deposits from international deposit platform Raisin and other financing decreased by 21 million euros. Compared to Q2 2024, volume of Coop Pank's deposits has increased by 77 million euros (+4%). In an annual comparison, share of demand deposits of total deposits has increased from 32% to 33%. In Q2 2025, the bank’s financing cost was 2.5%, at the same time last year the financing cost was 3.4%.

In Q2 2025, net loan portfolio of Coop Pank increased by 125 million euros (+7%), reaching 1.94 billion euros. Over the quarter, the strongest growth was shown in the business loans portfolio, which increased by 82 million euros (+10%). Home loans increased by 37 million euros (+5%). The volumes of leasing portfolio increased by 3 million euros (+2%) and consumer finance portfolio increased by 2 million euros (+2%). Compared to Q2 2024, total loan portfolio of Coop Pank has grown by 322 million euros (+20%).

In Q2 2025, overdue loan portfolio of Coop Pank was at the level 2.8%. A year ago, overdue loan portfolio was at the level of 2.2%.

Impairment costs of financial assets in Q2 2025 were 1.4 million euros, which is 1.1 million euros more than in previous quarter and 0.1 million euros more than in Q2 2024.

Net income of Coop Pank in Q2 2025 was 19.5 million euros, increasing by 1% in a quarterly comparison and decreasing by 5% in an annual comparison. Operating expenses reached 10.1 million euros in Q2 - operating expenses increased by 6% in the quarterly comparison and remained unchanged in the annual comparison.

In Q2 2025, net profit of Coop Pank was 6.6 million euros, which is 16% less than in the previous quarter and 17% less than a year ago. In Q2 2025, cost to income ratio of the bank was 52% and return on equity was 12.1%.

As of 30 June 2025, Coop Pank has 34,700 shareholders.

Heikko Mäe, Interim Chairman of the Management Board of Coop Pank, comments the results:

"The Estonian economy as a whole has not yet picked up new growth momentum this year. However, interest rates are stabilizing, there are signs that economic headwinds are easing, and Coop Pank’s results show that the rapid growth of a domestic bank is continuing.

On one hand, 5% inflation has reduced consumer confidence and directly affects the purchasing power of households. The rising unemployment rate, approaching 9%, is also a negative signal. On the other hand, there are positive signs in the industrial sector, where capacity utilization is increasing thanks to the recovery of export markets and lower interest costs.

In this economic environment, Coop Pank achieved strong results in the second quarter: the bank grew its loan portfolio by a record 125 million euros and is growing nearly twice as fast as the market. The strongest growth came from business loans and home loans. We see that both the manufacturing and real estate sectors are actively investing. Among home loan applicants, there is particularly strong demand for construction loans, and many large-scale repair and renovation works are in progress across homes in Estonia, financed through home loans. While business volumes are growing quickly, the bank’s operating costs have remained the same as a year ago, and credit losses are still minimal. This demonstrates that Coop Pank is operating efficiently and responsibly.

Since June, the bank has taken its cooperation with Coop retail to a new level by offering a new cashback solution to shared private customers. This is an important addition to the value proposition for joint customers and is part of the bank’s recently introduced account package upgrade.

Our results confirm that a strong local bank can grow successfully with its customers even in a challenging economic environment. We continue to provide banking services and financing solutions across all of Estonia - for households seeking stability and for businesses looking for investment opportunities.

Growth in business volumes, the high quality of the loan portfolio, cost control, and the decline in financing costs due to the interest rate environment and scale effects resulted in a strong net profit of 6.6 million euros for Coop Pank in the second quarter. The bank’s cost-to-income ratio was 52%, and return on equity was 12.1%."

Income statement, in th. of euros Q2 2025 Q1 2025 Q2 2024 6M 2025 6M 2024 Net interest income 18 003 17 930 19 319 35 933 38 400 Net fee and commission income 1 166 1 155 1 000 2 321 2 015 Net other income 375 225 146 600 271 Total net income 19 544 19 310 20 464 38 854 40 686 Payroll expenses -5 917 -5 578 -5 858 -11 496 -11 267 Marketing expenses -453 -358 -775 -811 -1 308 Rental and office expenses, depr. of tangible assets -777 -807 -775 -1 584 -1 570 IT expenses and depr. of intangible assets -1 724 -1 613 -1 474 -3 337 -2 879 Other operating expenses -1 220 -1 162 -1 208 -2 382 -2 494 Total operating expenses -10 091 -9 519 -10 091 -19 610 -19 518 Net profit before impairment losses 9 453 9 791 10 374 19 244 21 168 Impairment costs on financial assets -1 367 -226 -1 224 -1 594 -1 800 Net profit before income tax 8 086 9 565 9 150 17 650 19 368 Income tax expenses -1 437 -1 652 -1 152 -3 088 -2 232 Net profit for the period 6 649 7 913 7 998 14 562 17 136             Earnings per share, eur 0,06 0,08 0,08 0,14 0,17 Diluted earnings per share, eur 0,06 0,08 0,08 0,14 0,16

Statement of financial position, in th. of euros 30.06.2025 31.03.2025 31.12.2024 30.06.2024 Cash and cash equivalents 356 473 564 441 343 678 335 710 Debt securities 47 832 49 536 37 751 36 980 Loans to customers 1 943 420 1 818 109 1 774 118 1 621 000 Other assets 36 090 34 711 33 066 32 608 Total assets 2 383 816 2 466 796 2 188 614 2 026 298 Customer deposits and loans received 1 816 313 1 914 526 1 886 145 1 739 709 Debt securities issued 253 537 250 250 0 0 Other liabilities 30 645 19 096 27 683 28 121 Subordinated debt 63 148 63 363 63 148 63 148 Total liabilities 2 163 642 2 247 235 1 976 977 1 830 978 Equity 220 174 219 561 211 637 195 320 Total liabilities and equity 2 383 816 2 466 796 2 188 614 2 026 298 The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting

Coop Pank will organise a webinar on 18 July 2025 at 9:00 AM, to present the financial results of Q1 2025. For participation, please register in advance at: https://bit.ly/CP-veebiseminar-registreeru-18072025

The webinar will be recorded and published on the company's website www.cooppank.ee and on the YouTube channel.

Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The bank has 218,000 daily banking clients. Coop Pank aims to put the synergy generated by the interaction of retail business and banking to good use and to bring everyday banking services closer to people’s homes. The strategic shareholder of the bank is the domestic retail chain Coop Eesti, comprising of 320 stores.

Additional information:

Paavo Truu

CFO

Phone: +372 516 0231

E-mail: [email protected]

Attachments

Coop Pank 2025 Q2 results_EN

Coop Pank 2025-06_EN

Interim report_6m_2025_EN