Coop Pank unaudited financial results for Q1 2023
By the end of the Q1 2023, Coop Pank had 155,000 customers, during the quarter the number of customers increased by 8,200 (+6%). The bank had 70,100 active customers, during the quarter the number of active customers increased by 3,300 (+5%).
In Q1 2023, volume of deposits in Coop Pank increased by 5 million euros (+0.3%), reaching total of 1.51 billion euros. Deposits from private clients showed the fastest growth, increasing by 27 million euros: demand deposits decreased by 7 million euros and term deposits increased by 34 million euros. Deposits from domestic companies decreased by 23 million euros: demand deposits decreased by 94 million euros and term deposits increased by 71 million euros. Deposits from international deposit platform Raisin and other financing increased by 1 million euro. Compared to Q1 2022, volume of Coop Pank's deposits has increased by 364 million euros (+32%). In an annual comparison, share of term deposits of total deposits has increased from 50% to 59%. In Q1 2023, the bank’s financing cost was 1.4%, at the same time last year the financing cost was 0.5%.
In Q1 2023, net loan portfolio of Coop Pank increased by 46 million euros (+4%), reaching 1.35 billion euros. Home loans portfolio showed the fastest growth, increasing the volume by 25 million euros (+5%). Business loans portfolio increased by 11 million euros (+2%), leasing portfolio increased by 6 million euros (+5%) and consumer finance portfolio increased by 4 million euros (+4%). Compared to Q1 2022, total loan portfolio of Coop Pank has grown by 307 million euros (+29%).
In Q1 2023, overdue loan portfolio of Coop Pank increased from the level of 1.5% to the level of 1.8%. In an annual comparison, overdue loan portfolio decreased from the level of 1,9% to 1,8%.
Impairment costs of financial assets in Q1 2023 were 1.6 million euros, which is 0.1 million euros (+9%) more than in Q1 2022.
Net income of Coop Pank in Q1 2023 was 19.7 million euros, having grown 19% over the quarter and 71% over the year. Operating expenses reached 7.6 million euros in Q1 – operating expenses increased 2% in the quarterly comparison and 23% in the annual comparison.
In Q1 2023, net profit of Coop Pank was 9.4 million euros, which is 44% more than in the previous quarter and 168% more than a year ago. In Q1 2023, cost to income ratio of the bank was 39% and return on equity was 24.4%.
As of 31 March 2023, Coop Pank has 36,500 shareholders, 500 (+1.3%) shareholders have been added over the quarter.
Margus Rink, Chairman of the Management Board of Coop Pank, comments the results:
“Coop Pank's good results in the first quarter of 2023 are mainly due to the increase in business volumes. However, the increase in interest levels in the market also had a positive effect.
We see that in the economic environment cooled by the central banks, the loan portfolios of Estonian banks are in a market-wide downward trend. On the other hand, Coop Pank's loan portfolio increased by 46 million euros in the quarter, almost half of it came from home loans. In seven years, we have reached a position where today every tenth home loan issued in Estonia comes from us. Coop Pank has the same market share in the car leasing. In the first quarter, business loans portfolio showed somewhat more modest growth. We see that business customers are currently in a wait-and-see position – loan offers are asked, but contracts are approached with delay.
We also see that our loan portfolio remains high-quality: there have been no major changes in the payment behaviour of customers, in the number of debtors, nor in loan discounts. Although we have prepared for the possible occurrence of loan losses, it is not certain whether and to what extent we will actually see them in the Estonian market. Rather, the last quarters confirm that loan customers can cope with the changed circumstances.
The increased interest rates have activated customers to place their free money in term deposits. As a result, the share of term deposits has increased, both in Coop Pank and across the market. At Coop Pank, we pay almost half of the revenues generated by Euribor back to depositors through higher interest rates.
Coop Pank operates with increasing efficiency. The bank's business volumes and revenues are growing faster than our operating costs. All this resulted in a record quarterly profit of 9.4 million euros and the best cost-to-income ratio (39%) and return on equity (24.4%) in Coop Pank's history.”
| Income statement, in thousands of euros | Q1 2023 | Q4 2022 | Q1 2022 |
| Net interest income | 18 372 | 15 765 | 10 595 |
| Net fee and commission income | 1 028 | 1 107 | 796 |
| Net other income | 261 | -338 | 101 |
| Total net income | 19 661 | 16 534 | 11 492 |
| Payroll expenses | -4 542 | -4 216 | -3 449 |
| Marketing expenses | -412 | -526 | -391 |
| Rental and office expenses, depr. of tangible assets | -699 | -680 | -688 |
| IT expenses and depr. of intangible assets | -1 155 | -1 203 | -973 |
| Other operating expenses | -788 | -814 | -698 |
| Total operating expenses | -7 596 | -7 439 | -6 199 |
| Net profit before impairment losses | 12 065 | 9 095 | 5 293 |
| Impairment costs on financial assets | -1 627 | -1 898 | -1 494 |
| Net profit before income tax | 10 438 | 7 197 | 3 799 |
| Income tax expenses | -1 063 | -682 | -299 |
| Net profit for the period | 9 375 | 6 515 | 3 500 |
| Statement of financial position, in thousands of euros | 31.03.2023 | 31.12.2022 | 31.03.2022 |
| Cash and cash equivalents | 334 074 | 364 878 | 230 938 |
| Debt securities | 18 932 | 18 747 | 4 964 |
| Loans to customers | 1 346 822 | 1 300 775 | 1 040 209 |
| Other assets | 30 048 | 29 776 | 29 572 |
| Total assets | 1 729 876 | 1 714 176 | 1 305 683 |
| Customer deposits and loans received | 1 512 627 | 1 508 126 | 1 148 536 |
| Other liabilities | 20 599 | 18 795 | 14 775 |
| Subordinated debt | 38 101 | 38 139 | 27 111 |
| Total liabilities | 1 571 327 | 1 565 060 | 1 190 422 |
| Equity | 158 549 | 149 116 | 115 261 |
| Total liabilities and equity | 1 729 876 | 1 714 176 | 1 305 683 |
The reports of Coop Pank are available at:
Coop Pank will organise a webinar on 20 April 2023 at 9:00 AM, to present the financial results of Q1 2023. For participation, please register in advance at:
The webinar will be recorded and published on the company's website and on the YouTube channel.
Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The bank has 155,000 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:
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