Coop Pank AS

Hello everyone. Today is July 21, 2026. We are planning to talk about the results of the second quarter audit of Coop Bank. My name is Arko Kurtmann. I am the CEO of Coop Bank. Next to me is Paavo Truu, who is our financial manager. We are planning to talk about the results. If someone asks a question during the presentation, you will receive a QR code on the screen. You can scan it and ask us a question. We will go over the presentation points and answer the questions. But let's get to the second quarter and what happened to us and Coop Pank AS. The first thing I would like to say right away is that we came out with a completely new package, which means that it is more intended for a traveling person. Maybe in this package there is travel insurance, and if she is somewhere abroad and she has, for example, a need for solar money, then she has the opportunity to withdraw her solar money. and it is also available in our other shopping malls as well. Today we have three packages, the simple, useful and circular package. So, what did we miss in general? We felt that there was a stabilization of the interest rate in the second quarter. If you remember, in the first quarter, due to the military conflict in Hormuzi-Väina, the interest rate changed dramatically and therefore different interest rates in both Europe and the rest of the world, in the second quarter we saw a stabilisation of interest rates and they have been between 2.5% and 2.7%. What can be said further? It is very difficult to say, but we ourselves do not see much growth. Coming to us, we have to admit that it was a good and strong quarter. It was a strong quarter in the sense that both the demand for our clients and our customers grew. Our portfolio has grown by a total of 82 million euros, which is a very strong growth. And it is good for us to note that the quality of our portfolio is still very good. Our second quarter's growth is no longer the same as the first quarter, but if we compare it to the previous year's period, our growth is 24%. This is definitely a number that feels good, a very strong growth. For the next two points, I will give the word to Paavo, because it is more on his side.

Yes, Coop Panka has been trading for several years in the rating agency Muudis. In the last quarter, Muudis has made two important decisions in our part. Both are positive. In May, Muudis changed our long-term and long-term rating to BAA1. earlier it was PA2, one notch higher. The previous rate was actually a very good investment rate, but now it is one notch higher. And the second news came after that, that our band records, which are with our own rating, have also now reached a year-round higher rating, and here you state three A's on the scale. Three A's is the highest rating at all that can be achieved. The interesting fact is that the rating of Estonian countries is a bit lower. Our bank accounts have been recognized as more solid. The next issue is the issue of counterfeiting. If investors remember, in December, we wrote to the European Investment Bank Group about counterfeiting. and it was seen that we need to carry out certain actions to make it happen. On June 30th, 2026, this event took place and in the aftermath of this event, our risk positions decreased and our capitalization rate improved, so it is a good fundament to continue to grow here without having any problems with capital.

If I'm correct, we can give 250 million euros without capital? Yes, that's right. The risk is a bit lower, but the ratio is a bit different. Two more events we wanted to bring to light from the second quarter.

It was good to know that we were recognized in the second year in a row.

as one of the top 10 in the world. We are pleased to announce that we have received an award from the employers. Another very important topic is the protection of the country. We were recognised with the support gold medal. This is also very important. If I had to sum up the second quarter, I'd say it's a quarter where we can feel the joy. The results are positive, and Paavo will talk about them in more detail. Let's take a closer look at the numbers. There are four of our most important figures on the screen, which describe our economic dynamics.

Both of them show that in the second quarter of the fiscal year as well as the last 12 months we have had quite decent growth and maybe even in addition to the fact that there is decent growth, there is also good, stable growth. We have improved the indicators every quarter and in a quarter there have not been any setbacks. In total, the annual growth rate has fallen by 15%, so it's not bad at all. in the same number of customers. The growth percentage is a bit smaller, but the trend is exactly the same, only in the direction of growth and in the right direction for us, so it plays well together. And in the lower right corner, as Arko said, the growth numbers compared to the year-on-year are plus 24%, and it is important to note that In the past year, we had an interest group that worked against us. This resistance has disappeared and even established itself as a support trend. Let's take a closer look at this picture. If we consider that the annual portfolio has grown by 82 million, then the annual portfolio has also grown in the previous quarters in the past few years. But then the interest rate was the one that zeroed out our growth and counteracted it. In the current quarter, interest rate growth has come from excessive growth, but the growth of interest has also been helped, not counteracted. So the consequence is that our interest rates have increased by 6% compared to the quarter and therefore it is very important to note that our activity costs are practically the same as in the first quarter. and it is very rewarding, because it is our job. The interest rate is not ours to manage, but the costs are ours to manage. And I think we have done quite well this time. And the downside is that we have a growth of 8.2 million in the second quarter, which is more or less the same as in the first quarter, but compared to the year-on-year, as Arku said, 24% growth. So it is a really decent quarter. In comparison to the second quarter of last year, the dynamics are a little different. Here we have growth in interest rates of 15%, but we also see that our capital could have given us even higher growth, but here the effect of interest rates has been negative in our direction, so there has been a passive effect on the interest rate. The growth rate of Pank AS is so strong that without looking at it, we have a 24% growth rate in pure use. And with that, we are even completely different from the current situation in the country of Estonia. That's exactly right. And the growth rate of Pank AS was already mentioned that in terms of the year, it was in the 50% range and in the 21% range. So, of course, we like these numbers. Lainu Portfell is our biggest asset, but there are not many surprises here. The word has grown continuously. It has grown in all important investments and investments. The biggest growth in this quarter is home investment as well, quite stable. The need to finance auto leasing, which has been a little bit in the more retroactive rhythm in different countries in the last few years, has actually grown and there is a good feeling about it. Euribor really rose in the first quarter after the Iranian war, but in the first quarter our financial indicators did not show that the Euribor effect will come in during the month. And now it has been in its healthy quarter, the higher Euribor, it is already there. But in fact, not all of the Euribor effect has come in yet, because in most cases it is the six-month Euribor, which means that it will be built six months later. and that's where everything is right now. The quality of the loan portfolio is actually much better in all Estonian banks in terms of interest rates. But we answer and take care of our own banks the most. We are happy that we also have good quality. In conclusion, it can be seen that in the short term the interest rate has increased a lot, but the pink one, which shows an interest rate of 90 plus, is very stable and in comparison to some previous quarters, it has decreased. So in conclusion, we don't see any problems and the quality is still good. If we look at the same thing in terms of sales lines, then the sales line is something that is a crown jewel for us in the sense that here we are clearly with better quality than in Turku and we get below 1% sales from the first day. This is definitely a very good indicator, which can also be said that all kinds of external prices, including these five rating vouchers, are surprised to see how we can do so well. On the domestic line, we can see that the short-term line, i.e. the blue part, has grown and is maybe even higher than the middle of the line, but the pink part, which shows the 9-plus line, i.e. the ones with real problems, is still invisible in our bank and above the line, so there is no problem with the quality of the line on this line.

Maybe it's good to say that we show these numbers from the beginning of the first day of the calendar. If we look from the 4th to 5th day, then the light blue clouds immediately become smaller. Yes, light blue is really from the first day to the 90th day and in that sense it is very volatile.

It depends on the weekdays, calendar days, national holidays, January days. The blue part goes up and down, but the pinks are more stable. There is no long-term change. We have been working for years to improve the quality of the product. The quality of the line-up has come down. Now we see that it has stabilized a bit below 7%. Maybe the improvement of the quality has already taken place. But the main thing is that the quality is good. The quality is good above average and the pink part does not bother us. and the same article in the magazine, in the same way, in a stable manner, and the only short story I can tell you. in terms of financing costs, that is, how much we pay for the resources we take in. And I'll put it this way, the highest line, 2.1%, shows us the total average financing cost. It includes not only interest, but also all interest-based investments, including bonds and bonds. And it can be seen that in the last three quarters it is a stable 2.1%, which indicates that the cycle of interest rates has really entered into our financing price. But we have to keep in mind that just as we are encouraging on the market that the interest rate will continue to support us with its small rise, then from now on we do not see a decrease in the financial cost from the stock market. We see that the higher interest rate opens the way for the financial sector with the instruments and producers we know, so that the value of the money can go a little higher in the nearest quarters. But overall, the picture is good and stable. The support comes from both local clients and other instruments, and from both private and private clients. In terms of customer value, the trend is suitable for us. We grow according to expectations, both in terms of customer meetings and in terms of active customers. Our customer activity remains at the same level as it has been before. In this sense, almost half of our customers are those whom we consider to be active customers. It's been a big revolution for Kahjuks, but we have to keep in mind that it's good to be active with new clients and it supports our business growth. In terms of capital, I will point out two numbers. On the left side of the board, you can see in millions of euros our capital components. The main assets are the dark blue, the additional tier 1, or AT1, is the pink, and on the light blue is the second level of the stock market. As you can see, in the first quarter, there was a growth of plus 5 million, 35 million, 40 million. and in the second quarter 40 million plus 45 million. These are the consequences of these actions. At the end of the first quarter, we introduced a new emission of the original budget, and at the beginning of the second quarter, the final assessment took place, so that these numbers are reflected in the numbers of the second quarter. At the same time, we called back the old numbers of the second quarter which has reached the target of the Võlagrija mission. But the net profit of our capital has improved by 2.5 million euros in the second quarter. This has been the result of capital numbers. On the better side of the graph, you can see that all the relative value lines have made a strong jump in the second quarter. And this is due to the fact that we are now living from the fact-finding process. that we gave some of the risk to the European Investment Bank Group and thus our risk position decreased, because capital itself did not decrease at the same time, so the ratio of capital and risk position went significantly higher. It can be seen that our capital buffers are now much stronger than they were, and that means that we actually do not want to keep such large buffers stable. It is actually ready to grow. Now we have room to grow with our risks. There is not much to comment on liquidation indicators. They are bad. Liquidation is on the same level as all the other indicators. The liquidation costs in the millions and some of the other costs are quite stable, around 20%, a little bit lower. Regulatory rates of LCR and NSF-R are also high. There is actually very little news about it. and income indicators. Income indicators are one of the most useful in millions of euros. We have already talked about it. We have been talking about it. It is on the right track. But the ratio of consumption to revenue has been a long-term goal for us is below 45%. We haven't reached it yet, but we have clearly moved in the right direction in each quarter. In the second quarter, we have reached the level of 50%. It doesn't reassure us yet, but we are clearly moving in the right direction. And in a sense, like Sarno's comment to Oma Kapitaidootlus, Roe, Oma Kapitaidootlus, our long-term goal is to get 15% in the future. We are moving in this direction. We haven't reached it yet, but we are moving. and one alternative example is our activity-consumption portfolio. The trend is not too fast, but it is clear that our efficiency has improved in terms of revenue efficiency. We certainly hope to see improvement in the future. In terms of shareholders, there has been little movement in terms of the value of the shares, which we still like a lot. We are very proud of them, but there is no movement for them. The better side of the picture is that the large shareholder structure is exactly the same as it has been for many years. What can be said behind the scenes is that in Hallis block, where there are a lot of good investors, about 31,000 as you can see from the left side, there has been a strong financial investment. Not a good investor with 1-100 shares, but real investors with real positions, such as local funds, investors or investors. We have examples of shareholders who have 100 000 shares or more. is growing in the structure of our shareholders from week to week. Today, we have reached about 67%. In fact, more than 10% of the market share is in the hands of local financial investors, in addition to the names we show on the screen.

And maybe one more thing, our stock has been a very active trading object. You can see from the years that we had a lot of good deals. Yes, in the last year, the activity of stock trading has really increased.

In the last year, we traded 11 million pieces. In the first half of that year, it was only 6.5 million. If the trend continues, then our trading activity has actually increased. and it also opens up a little bit, it goes hand in hand with the fact that when the new, bigger financial investors come, they have to buy from somewhere and that also helps in this process.

It is clear that the Baltic Stock Exchange is not a liquidity, but I would say that if we could talk about it, then we could actually get rid of quite a large amount and we could actually buy quite a large amount if such a wish is possible.

Talking about the price of the share, the price has gone up a little at the end of the year. At times it was even higher, but now it has remained around 20-30%. If we look at the results, it has improved, so our ratio is still quite low and gives room for optimism here as well. The growth of the economy is so fast. And if we put it all together, then the area of the quarter is, let's say, the growth of the annual portfolio. This is where we start to see a rise in revenue and income. In fact, it starts from the value of the client, as it is quite common, the value of the client is growing, the annual portfolio is growing. The growth is now really stable in the quarter-to-quarter ratio, but in the long-term trend, we are in the growth course. The supply chain and supply chain are moving in the right direction, not yet where we would like to be, but we believe that we will be soon.

Yes, if I were to sum it up, we had a strong first quarter last year, the second quarter was strong, and maybe this is also the point where all 450 co-op workers would come today. Strong growth, even stronger results, and maybe it's not important that we can't talk about these positive numbers with Paavo today. So, let's get to the point. Since we don't have time for the presentation, let's take a look at the questions. Today's question is, what are the good results that you predict in terms of share price over the year?

We do not make a share price forecast. Even if we are a real investor, we have investors with us. We have our own plans for ourselves, but we do not have as well as give some recommendations and prices, so that we can maintain it.

Well, my logic is very simple, that if we can improve the fundamentals of financial indicators in time and increase the uses in time, then it is a very clear and strong advantage for the value of the asset to grow, and it also lives in the stock market.

And so much we can say, that with our behavior we show that we believe in this stock. Whether we bought in cash or through option programs, we have become shareholders and kept the position. I can say that I haven't sold in the last year. Yes, me too. I haven't sold in the last five years.

I have bought every year and I haven't sold even once. I clearly believe in the potential of this stock. Next question. Can the growth of the euro-currency start to disrupt the new and advanced projects and make the Estonian economy collapse again? Do you want to talk about it, Makro?

Yes, I might. It's going out of the microphone, isn't it? Whether the activity of the participants is affected by it. Today, at least, we see that there has been no change in the base interests of non-participants and participants in this regard. The demand for all other movements in the background is mostly good and perhaps has grown over the years. A few years ago the interest rate was even lower, but a few years ago the interest rate was also stronger. And the second thing, if I can explain why it is so, that interest rates are growing, but the interest rate doesn't go up, is that the change has been relatively small. If we had 2.1% or 6-6% in the base, today it is 2.6-2.7%. This change is important in numbers, it is a known investment, where capital spending is the most important. we take into account energy and infrastructure, but in many cases capital costs are not very high. The change in labor costs is significantly higher. This is probably the reason why this much smaller, 50-60% increase has not yet opened the way.

Well, I myself have thought that the more fragile the macro-centre outside of Estonia, the more stable our centre should be within the country. So I would call on our politicians to keep a stable line and don't come up with some new innovative solutions. And if we manage to balance this situation with our local stability, then I think that in the second half of the year is very good for us as well as for our clients. If we look at the last five years, then we really have the economy growing around zero, a little on the plus side and a little on the minus side. Now we have to try to enter a period where our economy can grow for several years in a row. This would give us a lot of positive results. But we look at the other side of this year positively. And the current situation in 2027 as well. There is no one to look at it further. We never know what will surprise us. You would become a bigger philosopher from the question of the euro.

Well, I was thinking about how this life could turn out in the future.

See you on the 20th of October.