Finance
AI
Coop Pank Unveils Strategy to Double Profit and Seize 10% Market Share
Estonian lender Coop Pank has launched an aggressive new strategy through 2030, targeting a net profit of at least €60 million by expanding into investment services this year and growing its loan portfolio at two to three times the market rate.
- —Coop Pank announced a new strategy through 2030, aiming to double its profit to at least 60 million euros and increase its loan portfolio market share to 10%.
- —The strategy involves growing the loan portfolio at 2-3 times the market rate annually, with a focus on corporate and home loans, supported by leasing and consumer financing.
- —Coop Pank plans to enter the investment services market within the current year to complement its existing service offerings.
- —Alvar Pihlapuu, previously the bank's IT manager, has been appointed as a new member of the management board, effective February.
- —The bank aims to maintain a return on equity (ROE) of at least 15% and reduce its cost-to-income ratio (CIR) to below 45%.
Recap
Coop Pank's 2030 strategy is a calculated bid to disrupt Estonia's established banking hierarchy. The plan hinges on aggressive loan growth fueled by a favorable economic outlook and a strategic diversification into investment services to broaden revenue streams. Appointing an IT leader to the management board signals that technology is not just a tool but a central pillar of this expansion, though the ambitious financial targets carry significant execution risk in a competitive market.