Finance
AI
Coop Pank's Growth Story Hit by Profit Slump, Regulatory Scrutiny
Estonia's Coop Pank saw its loan portfolio surge 19% to surpass €2 billion in 2025, but this rapid expansion was undercut by an 11% drop in net profit and the launch of a financial supervision investigation into its relationship with a former corporate client.
- —Coop Pank experienced significant growth in its loan portfolio, which increased by 19% to exceed 2 billion euros for the first time in 2025.
- —The bank's customer base expanded by 9%, reaching 227,000 clients by the end of 2025, with a notable influx of both private and corporate clients.
- —Despite strong growth in lending and customer numbers, Coop Pank's net profit for 2025 decreased by 11% compared to the previous year, attributed to falling interest rates.
- —The bank's management anticipates a return to profit growth throughout the current year, with a focus on increasing the number of primary banking clients.
- —Financial supervision has initiated an investigation into Coop Pank's relationship with its former client, the auto company JMV.
Recap
Coop Pank's 2025 results reveal a classic growth-versus-profitability dilemma, exacerbated by macroeconomic pressures on interest margins. The bank successfully captured market share, but the new regulatory investigation into a past client relationship is a critical wild card. This probe shifts the focus from financial performance to potential governance and risk management vulnerabilities, creating uncertainty that could complicate its future strategy.