LHV and Coop Pank boost third-quarter profits

Estonian financial group LHV Group and lender Coop Pank both increased their net profits in the third quarter, ERR reported. LHV earned €37.5 million, up 43% from a year earlier and 52% from the previous quarter. Coop Pank made €9.1 million, an annual increase of 30% and a quarterly rise of 10%.

LHV’s result was driven by higher net interest and fee income, as well as the release of more loan-loss provisions. Chief Executive Mihkel Torim told Äripäev radio that LHV Bank resolved a troubled loan more effectively than initially expected. The provisions related to a loan associated with E-Piim. Torim said the matter was essentially closed, although some technical procedures could remain.

Coop Pank reported its highest quarterly profit so far this year. It earned €25.6 million in the first nine months, 19% more than in the same period last year. Its return on equity in the third quarter was 14.6%.

Chief Executive Arko Kurtmann said larger loan volumes and the quality of the loan portfolio helped increase profit, while higher Euribor rates also supported results. He said the bank aims to earn more than €60 million in annual profit by 2030.

Coop Pank’s deposits grew by €131 million, or 6%, during the quarter to €2.32 billion. Retail customers added €20 million, business customers €51 million and deposits raised through platforms €60 million. Deposits were up €408 million, or 21%, over the year.

The bank had 240,600 customers at the end of the quarter, an increase of 5,000 in three months and 19,000, or 9%, over the year. It had 113,900 active account customers, 8% more than a year earlier, and 31,500 shareholders as of September 30.