Targets and strategy

The Bank has set the following financial targets through 2030:

• Loan portfolio market share of 10%. Coop Pank aims to increase its loan portfolio market share to 10% by end of 2030. The Bank plans to grow at a rate 2–3 times faster than the overall market. Growth in lending volumes will be driven primarily by corporate and home loans, supported by growth in leasing and consumer finance.
• Doubling net profit to at least EUR 60 Million. The Bank’s objective is to double its profit over the next five years and reach a net profit of at least EUR 60 million by 2030. This target supports the Bank’s ability to provide shareholders with stable and attractive returns.
• Return on equity of at least 15%. Coop Pank aims to maintain a long-term average return on equity (ROE) of at least 15%, ensuring efficient use of capital and attractive returns for shareholders.
• Cost-income ratio below 45%. The Bank targets a cost-to-income ratio (CIR) below 45%, which represents a strong result in the Baltic banking sector and supports cost-efficient and sustainable growth.
• Dividend policy. Coop Pank will continue its existing dividend policy, under which 25% of pre-tax profit is distributed to shareholders, providing a stable cash flow to investors.

The Bank's way of operating for achieving its strategic objectives is as follows:

• Estonian bank. Coop Pank is predominantly owned by domestic investors. The bank's customers are all residents of Estonia. All our decisions are made in Estonia. Our employees, the Management Board and the Supervisory Board sit at one table, every week if they must. We feel there is public support for domestic capital-based banks. Through its activities, the bank wishes to contribute to the development of Estonian people and companies and thereby support the development of the Estonian economy. In fulfilling this mission, we cooperate proactively with Estonian entrepreneurs who need financial support to implement their business plans in both rural and urban areas. By supporting the development of companies outside the big cities, we contribute to the regional development of Estonia and create opportunities for people to live where they want to in Estonia.
• Everyday banking, financing services and saving products. Coop Pank sees its strengths and the resulting growth opportunities primarily in the provision of everyday banking (account, payments, bank card, cash, deposits), financing services (mortgage loan, consumer loan, credit card, business loan, lease financing) and saving products (short term saving, medium term saving into deposits, long term saving into pension funds). In addition, we intermediate the most common property insurance products (motor third party liability insurance, comprehensive insurance, home insurance, travel insurance, purchase insurance) through our insurance broker.
• We're fast. Our way of operating is fast always and everywhere - customer can open an account through electronic channels in about 3 minutes, instant payments are made in seconds, we make a decision on a private customer's small loan or credit card in about 5 minutes and we make a mortgage loan decision or car lease financing decision within one working day.
• Banking with a human face. At a time when the prevailing trend is digitalisation and service on electronic channels, Coop Pank is following the same path, but also differs by offering customers human contact – we have financial service staff working in bank branches (15 bank branches) and salespeople working in Coop stores (320 stores).
• A bank that suits your life / business. Not the other way around. Coop Pank has an ambition to grow and therefore we strive on behalf of every customer. Our risk appetite is significantly higher. Having a growth strategy and we see as our strength the will and ability to delve into the wishes of our customers, to approach them personally and to find a solution that suits the customer's wishes. We price everyday banking services on a package basis, allowing for the use of all banking services the customer needs on a daily basis for a fixed monthly fee. We pay interest rates as on customer demand deposits as on term deposits.
• Integration of banking and retail. Thanks to the strategic partnership with Coop Eesti Keskühistu and its 18 member cooperatives, in addition to the usual sales and service channels (offices, internet banking, mobile banking), we can also offer financial services in 320 stores of Coop Eesti Keskühistu member associations all over Estonia. This is expressed through the Coop Sula service, i.e. the possibility to make a cash withdrawal from a bank account or a deposit to a bank account at cash registers of Coop stores. The customer also receives the cheapest prices in Coop Estonia stores when paying for purchases with a Coop Pank card.