Coop Pank planning launch of investment services

Coop Pank’s Supervisory Board has approved the bank’s strategic goals for the next five years, which include the continuation of its current rapid rate of growth rate and dividend policy, boosting its profitability and further strategic cooperation with Coop retail.

Chairman of the Management Board Arko Kurtmann says that with 32,000 shareholders, Coop Pank understands that it has a responsibility to grow its investors’ wealth. “That’s why we have to put our clients at the heart of everything we do, and why providing faster and more convenient services has to be our competitive edge,” he stated. “After all, we can only grow if we act more quickly and efficiently than our competitors.”

The most important strategic financial objective the bank has set itself is to grow 2-3 times more rapidly than the market average, increasing the market share of its loan portfolio to 10% by 2030. This will mainly come from growth in business and home loans, supported by leasing and consumer financing. The bank has also set itself the target of doubling its profits over the next five years, its aim being to achieve a net profit of at least 60 million euros by 2030.

Coop Pank hopes to maintain its return on equity (ROE) at a level of at least 15% as a long-term average, enabling capital to be efficiently converted into profit and ensuring an attractive return for shareholders. To guarantee cost-effective growth, an objective has also been set to bring the bank’s cost/income ratio (CIR) below 45%. The Supervisory Board also confirmed the continuation of the bank’s current dividend policy, in line with which 25% of pre-tax profits are paid out to shareholders.

“The Estonian economy is entering a new phase of growth, creating favourable conditions for growth in the banking sector as well,” Kurtmann added. “Coop Pank has almost tripled its number of clients, more than tripled its volume of loans and nearly quadrupled its profits over the last five years. Our lending exceeded 2 billion euros for the first time in 2025. We’ve proven we can grow faster than the market as a whole, and the strategy approved by our Supervisory Board charts a clear course for growth over the next five years as well. Our goal is to double our profits, reaching a net total of at least 60 million euros by 2030. That’s an ambitious but achievable goal, one which is based on the strength of our team, our efficient business model and our close cooperation with Coop retail.”

Kurtmann says that Coop Pank entering the investment market – the final missing piece in the bank’s service portfolio – is a key prerequisite to achieving the growth rate it has set as its target. Preparations to launch investment services will start this year. The aim is to offer clients, alongside existing services, an opportunity to grow their wealth through diversified investment opportunities during the new strategy period.

“At the heart of that strategy is our support for the activities of people and companies all over Estonia,” Kurtmann said. “We feel the strategy will create value for our clients, our shareholders and Estonian society alike.”