Coop Pank is the latest bank in Estonia to report record first-half of 2023 profits, in fact close to those of the entire figure in 2022. Whereas the bank made a net profit of €20.4 million last year, it has reported a profit of €19.7 million for January to June this year alone, ERR.ee, the website of Estonian national broadcaster ERR, reported on July 20.

Coop Pank board chair Margus Rink said via a press release that the bank's business volumes grew at a record pace in the second quarter of this year, i.e. April-June inclusive.

Rink said: "The growth of the loan portfolio affected all our business lines: business loans, home loans, car leasing and consumer financing. This demonstrates that despite the fragile macroeconomic environment and increased interest rates, there is still a high demand for loans remaining in the market."

Rink added that firms and households are coping well with increasing loan payments that have resulted from the recent rises in the Euribor rate.

Rink said that challenges include attracting depositors to the bank. "Within the market as a whole, deposits have not risen since the start of the year - private deposits have increased by €0.5 billion, but corporate deposits have decreased by the same value. This has increased the competition between banks for any available resources here."

Q2 2023 ended with Coop Pank's best ever quarterly profits, of €10.4 million, its lowest cost-to-income ratio ever, at 38%, and a record return on equity of 25.6%. 

Coop Bank reported 37,000 shareholders as of June 30. 500 more shareholders were added during the quarter.

Coop Pank, based on Estonian capital, is one of five consumer banks operating in Estonia.