Coop Pank unaudited financial results for Q1 2024
April 18 2024 - 1:00AM
Coop Pank unaudited financial results for Q1 2024
By the end of the Q1 2024, Coop Pank had 189,000
customers, increased by 7,000 customers in the quarter (+4%) and by
34,000 in the year (+22%). The bank had 84,400 active customers,
increased by 2,400 (+3%) in the quarter and by 14,300 (+20%) in the
year.
In Q1 2024, volume of deposits in Coop Pank
decreased by 29 million euros (-2%), reaching total of 1.69 billion
euros. Deposits from private clients increasing by 11 million
euros: demand deposits increased by 8 million euros and term
deposits increased by 3 million euros. Deposits from domestic
business customers decreased by 15 million euros: demand deposits
increased by 6 million euro and term deposits decreased by 21
million euros. Deposits from international deposit platform Raisin
and other financing decreased by 24 million euros. Compared to Q1
2023, volume of Coop Pank's deposits has increased by 181 million
euros (+12%). In an annual comparison, share of term deposits of
total deposits has increased from 59% to 70%. In Q1 2024, the
bank’s financing cost was 3.5%, at the same time last year the
financing cost was 1.5%.
In Q1 2024, net loan portfolio of Coop Pank
increased by 40 million euros (+3%), reaching 1.53 billion euros.
Business loans and home loans portfolio and leasing showed the
biggest growth. The volumes of home loan portfolio increased by 20
million euros (+3%), the volumes of business loan portfolio
increased by 11 million euros (+2%) and leasing portfolio increased
by 10 million euros (+7%). Consumer finance portfolio decreased by
1 million euros (-1%). Compared to Q1 2023, total loan portfolio of
Coop Pank has grown by 184 million euros (+14%).
In Q1 2024, overdue loan portfolio of Coop Pank increased from
the level of 2% to the level of 2.4%. A year ago, overdue loan
portfolio was at the level of 1.8%.
Impairment costs of financial assets in Q1 2024
were 0.6 million euros, which is 0.6 million euros (-50%) less than
in previous quarter and 1,1 million euros (-65%) less than in Q1
2023.
Net income of Coop Pank in Q1 2024 was 20.2
million euros, decreasing by 1% in a quarterly comparison and
increasing by 3% in an annual comparison. Operating expenses
reached 9 million euros in Q1 – operating expenses decreased by 5%
in the quarterly comparison and increased 24% in the annual
comparison.
In Q1 2024, net profit of Coop Pank was 9.1
million euros, which is 9% more than in the previous quarter and 3%
less than a year ago. In Q1 2024, cost to income ratio of the bank
was 47% and return on equity was 19.2%.
As of 31 March 2024, Coop Pank has 37,100
shareholders.
Margus Rink, Chairman of the Management
Board of Coop Pank, comments the results:
“We are currently operating in an environment where two years of
recession have been replaced by stagnation, and hopefully, in the
annual perspective, we will see the first signs of the economy
returning to the growth phase. In this context, the quarterly
growth of Coop Pank's loan portfolio by 40 million euros must be
considered a decent result. We are also pleased with the continued
growth in the number of customers.
At the end of last year, the expectation of a gradual decrease
in interest rates from this year prevailed in the markets, now the
starting point of the interest rate decrease has shifted to the
summer months and this year markets are predicting a somewhat
smaller decline. Banks' interest income has reached its peak in
such an environment, with a downward trend looking forward.
Interest costs have also reached their peak and the interest rates
offered for deposits are much lower today than a few months ago.
From here on, banks' net interest income can grow only at the
expense of increasing business volumes.
The quality of the loan portfolio has well
withstood the few years recession. In the last quarter, our cost of
credit was very low, as problems with a couple of business
customers were resolved and we released the discounts of these
loans. At the same time, the number of short-term debtors in the
home loan portfolio has somewhat increased, but most of the time
they find a solution before the next loan payment is due.
In summary, the growth of business volumes, the
persistence of high interest rates and low credit costs ensured us
a very decent profit and performance indicators in the first
quarter of this year. We are strongly capitalized and have enough
deposits to finance the loan requests by companies and individuals,
which would turn Estonia's economy to growth track. Economic growth
would directly cover the deficit in the state purse and reduce the
pressure on tax increases and spending cuts.”
Income statement, in th. of euros |
Q1 2024 |
Q4 2023 |
Q1 2023 |
Net interest income |
19
082 |
20
594 |
18
372 |
Net fee and commission income |
1
014 |
1
489 |
1
028 |
Net other income |
125 |
-1 666 |
261 |
Total net income |
20 221 |
20 417 |
19 661 |
Payroll expenses |
-5
409 |
-5
495 |
-4
542 |
Marketing expenses |
-533 |
-912 |
-412 |
Rental and office expenses, depr. of tangible assets |
-795 |
-678 |
-700 |
IT expenses and depr. of intangible assets |
-1
405 |
-1
363 |
-1
155 |
Other operating expenses |
-1 286 |
-1 498 |
-788 |
Total operating expenses |
-9 427 |
-9 948 |
-7 596 |
Net profit before impairment
losses |
10 794 |
10 469 |
12 065 |
Impairment costs on financial assets |
-576 |
-1
148 |
-1
627 |
Net profit before income
tax |
10 218 |
9 322 |
10 438 |
Income tax expenses |
-1 080 |
-935 |
-1 063 |
Net profit for the period |
9 138 |
8 386 |
9 375 |
|
|
|
|
Earnings per share, eur |
0,09 |
0,08 |
0,09 |
Diluted
earnings per share, eur |
0,09 |
0,08 |
0,09 |
Statement of financial position, in th. of
euros |
31.03.2024 |
31.12.2023 |
31.03.2023 |
Cash and cash equivalents |
380
644 |
428
354 |
334
074 |
Debt securities |
36
460 |
36
421 |
18
932 |
Loans to customers |
1 531
038 |
1 490
873 |
1 346
822 |
Other assets |
31 320 |
30 564 |
30 048 |
Total assets |
1 979 461 |
1 986 212 |
1 729 876 |
Customer deposits and loans received |
1 693
254 |
1 721
765 |
1 512
627 |
Other liabilities |
27
698 |
28
436 |
20
599 |
Subordinated debt |
63 239 |
50 187 |
38 101 |
Total liabilities |
1 784 191 |
1 800 387 |
1 571 327 |
Equity |
195 270 |
185 825 |
158 549 |
Total liabilities and equity |
1 979 461 |
1 986 212 |
1 729 876 |
The reports of Coop Pank are available at:
https://www.cooppank.ee/en/reporting
Coop Pank will organise a webinar on 18 April 2024 at 9:00 AM,
to present the financial results of Q1 2024. For participation,
please register in advance at:
https://bit.ly/CP-180424-registreerimine
The webinar will be recorded and published on the company's
website www.cooppank.ee and on the YouTube channel.
Coop Pank, based on Estonian capital, is one of the five
universal banks operating in Estonia. The bank has 189,000 daily
banking clients. Coop Pank aims to put the synergy generated by the
interaction of retail business and banking to good use and to bring
everyday banking services closer to people’s homes. The strategic
shareholder of the bank is the domestic retail chain Coop Eesti,
comprising of 320 stores.
Additional information:Paavo TruuCFOPhone:
+372 516 0231E-mail: paavo.truu@cooppank.ee
- Coop Pank 2024 Q1 results_EN
- Coop Pank 2024-03_EN
- Interim report_3m 2024_EN