Both Estonian banks listed on the Nasdaq Baltic exchange reported improved financial results in the third quarter.

LHV Group reported a net profit of €37.5M in Q3, up 43% YoY. However, earnings benefited significantly from an €8.9M release of previously established loan loss provisions, meaning profit before impairment losses grew by a more modest 8%. On the other hand, results were negatively affected by an unusually large loss of approximately €5.8M on financial assets, mainly driven by the revaluation of the liquidity bond portfolio.

LHV Group net profit

Coop Pank also reported higher net profit in Q3, reaching €9M, an increase of €2M (+30%) compared to the same period last year.

Coop Pank net profit

Both banks recorded 24% YoY growth in net interest income in Q3, driven by higher interest income and improved interest margin. Net interest income also increased compared to Q2 2026, rising by 9% at Coop Pank and 10% at LHV Group. Both banks expanded their loan portfolios by 3% during the quarter.

LHV Group net interest income

Coop Pank net interest income

Operating expenses also increased, growing faster at Coop Pank – 19% YoY, compared to 12% YoY at LHV Group. Nevertheless, strong net interest income growth helped offset the impact of rising operating costs.

In terms of P/E and P/BV multiples, Coop Pank continues to trade at lower valuations than LHV Group, as has historically been the case – at 7.5x and 0.98x, respectively, compared to LHV Group’s 9.5x and 1.35x. While LHV Group’s higher ROE partly justifies this valuation premium, the ROE gap between the two banks remains relatively modest, with Coop Pank at approximately 13% and LHV Group at 15%.

Relative valuations

Currently, Artea Bank trades at a higher P/E multiple than both Estonian banks. However, Artea has yet to release its Q3 results, which are expected next week.