Yahoo Finance 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 |
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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 Truu
CFO
Phone: +372 516 0231
E-mail: paavo.truu@cooppank.ee
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