Coop Pank Profits Rise as It Charts a New Digital-First Strategy

TALLINN, ESTONIA – February 13, 2026 – Coop Pank AS has kicked off 2026 with a robust financial performance, reporting a net profit of 2.8 million euros for January, a 4% increase compared to the same period last year. The results signal a positive start to the year for the Estonian-capital bank, which continues to outpace the market in key growth areas while laying the groundwork for a significant strategic evolution focused on digital services and enhanced profitability.

This performance comes as the broader Estonian economy shows signs of a gradual recovery, with GDP growth projected to accelerate in 2026. Coop Pank's ability to grow its loan portfolio and deposit base in this environment highlights its strengthening position in a competitive banking sector.

In a statement, Arko Kurtmann, Chairman of the Management Board, commented on the results, noting the solid profit indicates that the bank’s “profitability has turned upward.” He added, “In January, the bank’s loan portfolio continued to grow moderately, primarily supported by new business loans and home loans. The loan portfolio remains of good quality.”

A Story of Impressive Growth

Coop Pank’s January report paints a picture of aggressive expansion. The bank's loan portfolio swelled by an impressive 19% year-over-year, reaching 2.13 billion euros. This growth was driven primarily by a 10 million euro increase in corporate loans and a 4 million euro rise in home loans. This rate of expansion is particularly noteworthy, positioning the bank favorably against its peers; for instance, its 19% growth closely matches the 20% reported by LHV Group for 2025 and significantly outpaces the corporate loan growth of other major institutions.

Customer deposits also saw healthy growth, increasing by 8% over the year to 2.08 billion euros. January alone saw a 28 million euro jump in deposits, fueled largely by a 21 million euro increase from international platforms, demonstrating the bank’s expanding reach.

The overall client base grew by 9% year-over-year, reaching 228,400 customers by the end of January. However, the report also contained a nuanced detail: the number of active clients saw a slight decrease of 500 during the month. While overall client acquisition remains strong, this dip in engagement, potentially due to seasonal post-holiday behavior or the natural lag between a new customer joining and becoming fully active, is a metric the bank will be closely monitoring as it seeks to deepen customer relationships.

Charting a Course for the Next Five Years

Beyond the monthly figures, the most significant development is the approval of Coop Pank’s new five-year strategic objectives. The plan signals a clear ambition to not only maintain its rapid growth but also to evolve its business model for the future. Key pillars of the new strategy include increasing profitability, deepening the strategic cooperation with its retail partner Coop Eesti, and, most notably, launching investment services.

This move into the investment space would diversify the bank’s revenue streams beyond traditional lending and deposits. It is a timely initiative, aiming to capture a growing interest in personal investing among Estonians. The successful execution of this service will be a critical test of the bank’s ability to innovate and compete in new product categories.

Underscoring this digital-first ambition is a strategic change to the bank's leadership structure. As of February 1, 2026, the Management Board was expanded to include Alvar Pihlapuu, the bank’s Head of IT. Elevating the chief technologist to the highest level of executive decision-making is a powerful statement. It reflects a modern banking philosophy where technology is not just a support function but a core driver of business strategy, customer experience, and competitive advantage. This move ensures that the bank's digital transformation, crucial for launching new platforms like investment services, is embedded in its core leadership.

The Pursuit of Profitability and Efficiency

Coop Pank's financial health remains strong, with a return on equity (ROE) of 14.2% in January. This figure is highly competitive within the Estonian market, holding its own against the group-level ROE reported by major regional players like Swedbank (15.2% for 2025) and SEB (13.6% for Q4 2025). This demonstrates the bank is delivering strong value to its shareholders and is nearing its own long-term target of at least 15% ROE.

However, the bank’s cost-to-income ratio, a key measure of operational efficiency, stood at 50% for the month. While an improvement over previous periods for the growing bank, it remains above its long-term target of under 45% and higher than the more established efficiency levels of competitors like Swedbank Group, which reported a ratio of 36% for 2025. Chairman Arko Kurtmann acknowledged that both ROE and the cost-to-income ratio were “close to the bank’s long-term targets,” indicating that improving efficiency will be a key focus area as the bank continues to scale its operations.

As one of five universal banks in Estonia, and the only one intrinsically linked to a major domestic retail chain, Coop Pank continues to leverage its unique market position. The synergy with Coop Eesti’s 320 stores provides a distinct advantage, bringing everyday banking services closer to communities across the country. This strategy appears to be paying off, contributing to the trend of smaller, domestic banks capturing market share in a sector long dominated by larger Nordic institutions. The bank's strong start to 2026, coupled with a clear and ambitious new strategy, positions it as a significant and dynamic player in the future of Estonian finance.