Coop Pank unaudited financial results for Q3 2022
By the end of the Q3 2022, Coop Pank had 139,000 customers, during the quarter the number of customers increased by 8,200 (+6%). The bank had 62,400 active customers, during the quarter the number of active customers increased by 3,700 (+6%).
In Q3 2022, volume of deposits in Coop Pank increased by 106 million euros (+8%), reaching total of 1.35 billion euros. Deposits from domestic companies showed the fastest growth, increasing by 44 million euros: demand deposits increased by 50 million euros and term deposits decreased by 6 million euros. Deposits from private clients increased by 4 million euros: demand deposits increased by 5 million euros and term deposits decreased by 1 million euros. Deposits from international deposit platform Raisin and other financing increased by 58 million euros. Compared to Q3 2021, volume of Coop Pank’s deposits has increased by 368 million euros (+37%). In an annual comparison, share of demand deposits to total deposits has increased from 46% to 50%. In Q3 2022, the bank’s financing cost was 0.7%, which has increased compared to the previous quarters.
In Q3 2022, net loan portfolio of Coop Pank increased by 77 million euros (+7%), reaching 1.21 billion euros. Home mortgage loan portfolio showed the fastest growth, increasing the volume by 36 million euros (+8%). Business loans portfolio increased by 29 million euros (+6%), leasing portfolio increased by 8 million euros (+7%) and consumer finance portfolio increased by 4 million euros (+7%). Compared to Q3 2021, total loan portfolio of Coop Pank has grown by 354 million euros (+41%).
In Q3 2022, overdue loan portfolio of Coop Pank decreased from the level of 1.7% to 1.4%. A year ago, it was 2,0%.
Impairment costs of financial assets in Q3 2022 were 0.7 million euros, which is usual level. In Q3 2021 no impairment costs were made, in connection with the release of provisions in the consumer financing portfolio as a result of the pension reform.
Net income of Coop Pank in Q3 2022 was 13.9 million euros, having grown 9% over the quarter and 34% over the year. Operating expenses reached 7 million euros in Q3, having increased 5% in quarterly comparison and 20% in annual comparison.
In Q3 2022, net profit of Coop Pank was 5.7 million euros, which is 25% more than in the previous quarter and 34% more than a year ago. In Q3 2022, cost to income ratio of the bank was 50% and return on equity was 19.1%.
As of 30 September 2022, Coop Pank has ca 30 200 shareholders, during the quarter the number of shareholders increased by 200.
Margus Rink, Chairman of the Management Board of Coop Pank, comments the results:
“The keywords of the third quarter were: continued growth of the loan portfolio, low level of debt, slow down of the growth of the deposit portfolio, rise of the Euribor, record quarterly profit and the best performance indicators of all time.
Since the beginning of the year, we see that the volume of deposits in the market is not growing anymore, and the economy is consuming the deposits collected in previous periods. Due to that, it has become more difficult and expensive to attract new deposits. If in recent years we have included funds from European deposit platforms in a decreasing amount, then in the last quarter we have included these deposits again.
Coop Pank’s loan portfolio grew in all business lines. However, we are seeing the first signs of a decrease in loan demand, especially in corporate loans and home loans. The volume of non-performing loans continues to be low and, accordingly, the level of discounts. The increasing Euribor has a positive effect on interest income and a negative effect on interest expenses. However, the positive effect is twice as large as the negative effect.
All these factors together resulted in a record quarterly profit and the best performance indicators of all time.
We want to be ready for the opportunities that arise as economic growth slows down and have a strong capital base for when the economy returns to growth. Based on this, we have convened a general meeting of shareholders for November 1, where it is planned to decide on additional capital raising to finance the bank’s growth strategy.”
| Income statement, in th. euros | Q3 2022 | Q2 2022 | Q3 2021 | 9M 2022 | 9M 2021 |
| Net interest income | 12 721 | 11 629 | 9 345 | 34 945 | 25 714 |
| Net fee and commission income | 978 | 904 | 752 | 2 677 | 2 183 |
| Net other income | 148 | 224 | 230 | 476 | 665 |
| Total net income | 13 847 | 12 757 | 10 327 | 38 097 | 28 562 |
| Payroll expenses | -4 057 | -3 780 | -3 364 | -11 286 | -9 308 |
| Marketing expenses | -442 | -399 | -296 | -1 232 | -915 |
| Rental and office expenses, depr. of tangible assets | -684 | -669 | -667 | -2 041 | -1 822 |
| IT expenses and depr. of intangible assets | -1 087 | -1 116 | -893 | -3 177 | -2 442 |
| Other operating expenses | -659 | -646 | -568 | -2 003 | -1 761 |
| Total operating expenses | -6 929 | -6 610 | -5 788 | -19 739 | -16 248 |
| Net profit before impairment losses | 6 918 | 6 147 | 4 539 | 18 359 | 12 314 |
| Impairment costs on financial assets | -672 | -1 181 | -10 | -3 347 | -1 534 |
| Net profit before income tax | 6 246 | 4 966 | 4 529 | 15 012 | 10 780 |
| Income tax expenses | -499 | -378 | -228 | -1 177 | -612 |
| Net profit for the period | 5 747 | 4 588 | 4 302 | 13 835 | 10 168 |
| Statement of financial position, in thousands of euros | 30.06.2022 | 31.03.2022 | 31.12.2021 | 30.06.2021 |
| Cash and cash equivalents | 287 158 | 261 821 | 252 799 | 239 735 |
| Debt securities | 14 540 | 4 969 | 5 932 | 3 573 |
| Loans to customers | 1 208 457 | 1 131 367 | 953 396 | 854 234 |
| Other assets | 29 879 | 30 711 | 29 849 | 32 965 |
| Total assets | 1 540 035 | 1 428 868 | 1 241 976 | 1 130 507 |
| Customer deposits and loans received | 1 354 345 | 1 248 711 | 1 098 746 | 986 777 |
| Other liabilities | 19 659 | 19 706 | 14 423 | 18 233 |
| Subordinated debt | 43 211 | 43 164 | 17 064 | 17 111 |
| Total liabilities | 1 417 215 | 1 311 581 | 1 130 233 | 1 022 121 |
| Equity | 122 820 | 117 287 | 111 743 | 108 386 |
| Total liabilities and equity | 1 540 035 | 1 428 868 | 1 241 976 | 1 130 507 |
The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting
Coop Pank will organise a webinar on 19 October 2022 at 9:00 AM, to present the financial results of Q2 2022. For participation, please register in advance at: https://bit.ly/CP-19-10-veebiseminar-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 139,000 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 330 stores.
Additional information:
Paavo Truu
CFO
Phone: +372 516 0231
E-mail: paavo.truu@cooppank.ee
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