Coop Pank unaudited financial results for Q3 2021
Coop Pank has 108,000 clients by the end of Q3 2021, the number of clients has increased by 7,300 over the quarter (+7%). Number of private clients with current account in the bank increased by 6,700 and number of business clients by 600 over the quarter. Over the year, client base of Coop Pank increased 35%, i.e. by 28,000 clients.
In Q3 2021, volume of deposits in Coop Pank increased by 95 million euros (+11%), reaching total of 987 million euros. Deposits from domestic companies showed the fastest growth, increasing by 77 million euros, of which 42 million were demand deposits and 35 million were term deposits. Deposits from private clients grew by 25 million euros, of which 22 million were demand deposits and 3 million were term deposits. Deposits from international deposit platform Raisin and other financing decreased by 7 million euros. Compared to Q3 2020, volume of Coop Pank's deposits has increased by 299 million euros (+43%). In an annual comparison, share of demand deposits to total deposits has increased from 34% to 44%. In Q3 2021, the bank’s financing cost was 0.7%, at the same time last year the financing cost was 0.9%.
In Q3 2021, net loan portfolio of Coop Pank grew by 82 million euros (+11%), reaching 854 million euros. Business loans portfolio showed the fastest growth, increasing the volume by 57 million euros (+19%). Home loans portfolio increased by 28 million euros (+9%), leasing portfolio by 2 million euros (+3%) and consumer finance portfolio decreased by 5 million euros (-7%). Compared to Q3 2020, total loan portfolio of Coop Pank has grown by 255 million euros, i.e. 43%.
In Q3 2021, overdue loan portfolio of Coop Pank was at the level of 2%. In an annual comparison, overdue loan portfolio decreased from the level of 5% to 2%, which is the lowest level in last four years.
Impairment costs of financial assets in Q3 2021 were 0.01 million euros.
Net income of Coop Pank in Q3 2021 was 10.3 million euros, having grown 11% over the quarter and 29% over the year. Operating expenses reached 5.8 million euros in Q3, having increased by 8% over the quarter and 22% over the year.
In Q3 2021, net profit of Coop Pank was 4.3 million euros, which is 42% more than in Q2 2021 and 114% more than a year ago. In Q3 2021, cost to income ratio of the bank was 56% and return on equity was 16.2%.
As of 30 September 2021, Coop Pank has 24,575 shareholders, 6 113 shareholders have been added over the quarter.
Margus Rink, Chairman of the Management Board of Coop Pank, comments the results:
“When the market dropped in the first quarter of this year, our loan portfolio showed modest growth, it was followed by good growth in the second quarter and even stronger growth now, in the third quarter.
Similar dynamics have taken place in the growth of new customers and in the transactions made by them. The growing customer base, in turn, has led to an increase in domestic deposits and made it possible to reduce the share of more expensive foreign financing.
The growing loan portfolio, the number of customers and the volume of transactions made by them, the cheaper price of resources and the high quality of the loan portfolio resulted in Coop Pank's best quarterly profit (4.3 million euros) and performance indicators (ROE 16.2%; CIR 56%).”
| Income statement, in thousands of euros | Q3 2021 | Q2 2021 | Q3 2020 | 9M 2021 | 9M 2020 |
| Net interest income | 9 345 | 8 325 | 7 353 | 25 714 | 20 563 |
| Net fee and commission income | 752 | 783 | 558 | 2 183 | 1 557 |
| Net other income | 230 | 233 | 77 | 665 | 450 |
| Total net income | 10 327 | 9 341 | 7 988 | 28 562 | 22 570 |
| Payroll expenses | -3 364 | -3 065 | -2 844 | -9 308 | -8 109 |
| Marketing expenses | -296 | -313 | -168 | -915 | -595 |
| Rental and office expenses, depreciation of tangible assets | -667 | -576 | -557 | -1 822 | -1 672 |
| IT expenses and depreciation of intangible assets | -893 | -809 | -632 | -2 442 | -1 687 |
| Other operating expenses | -568 | -573 | -525 | -1 761 | -1 461 |
| Total operating expenses | -5 788 | -5 336 | -4 726 | -16 248 | -13 524 |
| Net profit before impairment losses | 4 539 | 4 005 | 3 262 | 12 314 | 9 046 |
| Impairment costs on financial assets | -10 | -753 | -1 139 | -1 534 | -4 074 |
| Net profit before income tax | 4 529 | 3 252 | 2 123 | 10 780 | 4 972 |
| Income tax expenses | -227 | -220 | -111 | -612 | -137 |
| Net profit for the financial year | 4 302 | 3 032 | 2 012 | 10 168 | 4 835 |
| Basic earnings per share (in euros) | 0,05 | 0,03 | 0,02 | 0,11 | 0,05 |
| Diluted earnings per share (in euros) | 0,05 | 0,03 | 0,02 | 0,11 | 0,05 |
| Statement of financial position, in thousands of euros | 30.09.2021 | 30.06.2021 | 31.12.2020 | 30.09.2020 | |
| Cash and cash equivalents | 239 735 | 221 666 | 170 750 | 168 984 | |
| Debt securities | 3 573 | 3 678 | 3 011 | 3 084 | |
| Loans to customers | 854 234 | 772 516 | 670 593 | 599 213 | |
| Other assets | 32 965 | 26 513 | 25 555 | 26 179 | |
| Total assets | 1 130 507 | 1 024 373 | 869 909 | 797 460 | |
| Customer deposits and loans received | 986 777 | 891 397 | 757 835 | 688 116 | |
| Other liabilities | 18 233 | 11 982 | 7 443 | 7 978 | |
| Subordinated debt | 17 111 | 17 064 | 7 064 | 7 111 | |
| Total liabilities | 1 022 121 | 920 443 | 772 342 | 703 205 | |
| Equity | 108 386 | 103 930 | 97 567 | 94 255 | |
| Total liabilities and equity | 1 130 507 | 1 024 373 | 869 909 | 797 460 |
The reports of Coop Pank are available at:
Coop Pank will organise a webinar on 20 October 2021 at 09:00 AM, to present the financial results of Q3 2021. For participation, please register in advance at:
The webinar will be recorded and published on the company's website as well as on the Nasdaq Baltic youtube.com channel.
Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The bank has 108,000 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:
Kerli Lõhmus
CFO
Phone:
E-mail:
Attachments
