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Coop Pank welcomes its one hundred thousandth client

As Coop Pank entered the stock exchange in 2019, one of its goals was to increase its client base to 100,000. This goal was achieved a year and a half earlier than planned: the one hundred thousandth client, a company named Prelvex AS from Järva County, joined the bank’s clientele yesterday.

The chairman of the board at Coop Pank, Margus Rink, says this year 13,000 people have already chosen to become the bank’s new clients, and the client base has increased by more than a third over a year. “As we entered the stock exchange in 2019, we promised to have reached the threshold of 100,000 clients by the end of 2022, but we passed this milestone a year and a half early. Although competition on the banking market is fierce at the moment, and banks are making a great deal of effort to acquire new clients, we have been able to offer solutions that stand out, which allowed us to increase our market share. Coop Pank’s clients value the fact that it is domestically owned, provides affordable solutions and is quick to respond,” Rink noted.

The client to have become Coop Pank’s one hundred thousandth is Prelvex AS, a company which specialises in peat production in Järva County. “We produce about 380,000 cubic metres of peat per year, most of which is exported to EU states and Arab countries,” said Erik Ratnik, member of the company’s management board.

Prelvex opted for cooperation with Coop Pank because they prefer Estonian banking services and because Coop Pank does not charge any fees on the money deposited in its clients’ current accounts. “Peat production is a seasonal business: in spring, the company needs to have sufficient financial resources in order to produce peat in the summer. In its turn, the autumn is when the sales period starts, and we begin saving for the new season. It is especially important for a seasonal business that it does not have to pay a fee to the bank for storing its funds,” Ratnik explained.

Erik Ratnik believes that companies whose sale chains involve the movement of large cash amounts on a seasonal basis should consider cooperation with several banks to distribute risks.  “What I like about Coop Pank is no fee for banking operation as well as the fact that it is domestically owned and is always where its clients are. My business mainly operates in Järva County and Lääne-Virumaa, and I have seen banks close down their branch offices in smaller towns and move its clients to online banking, but you cannot solve all situations over the internet,” Ratnik elaborated.

In addition to expanding its client base, Coop Pank has seen extensive growth in all major economic indicators. Over a year, deposits have increased by 52 per cent, reaching 880 million euros by the end of May, while the loan portfolio displayed a 37 per cent growth and amounted to 736 million euros. Having entered the stock exchange in 2019, Coop Pank has 18,000 shareholders, which secures it the second position after Tallink among the companies listed on the Nasdaq Tallinn stock exchange as far as the number of shareholders is concerned. In March, the bank issued subordinated bonds for the first time in order to increase its capital base for pursuing its growth strategy. In May, the bank made a record net profit of 1 million euros.

A recent survey by Kantar Emor shows that Coop is the most valued domestic brand.  Margus Rink says Coop is known to be making significant contribution to local community life across the country, and Coop Pank has been playing an important role in the success of Coop Eesti group in recent years. “Although the open banking market allows services of several banks to be used simultaneously, more than a half of our clients call Coop Pank their ‘main bank’ for daily operations,” Margus Rink noted.