Coop Pank unaudited financial results for Q3 2023
By the end of the Q3 2023, Coop Pank had 175,000 customers, during the quarter the number of customers increased by 7,900 (+5%). The bank had 77,400 active customers, during the quarter the number of active customers increased by 1,200 (+2%).
In Q3 2023, volume of deposits in Coop Pank decreased by 48 million euros (-3%), reaching total of 1.71 billion euros. Deposits from private clients increasing by 10 million euros: demand deposits decreased by 3 million euros and term deposits increased by 13 million euros. Deposits from domestic business customers decreased by 35 million euros: demand deposits decreased by 51 million euro and term deposits increased by 16 million euros. Deposits from international deposit platform Raisin and other financing decreased by 22 million euros. Compared to Q3 2022, volume of Coop Pank's deposits has increased by 353 million euros (+26%). In an annual comparison, share of term deposits of total deposits has increased from 50% to 69%. In Q3 2023, the bank’s financing cost was 2.7%, at the same time last year the financing cost was 0.7%.
In Q3 2023, net loan portfolio of Coop Pank increased by 36 million euros (+2%), reaching 1.49 billion euros. Business loans portfolio and home loans portfolio showed the fastest growth. The volumes of business loan portfolio and home loan portfolio both increased by 20 million euros (+3%). Consumer finance portfolio decreased by 1 million euros (-1%) and leasing portfolio decreased by 3 million euros (-2%). Compared to Q3 2022, total loan portfolio of Coop Pank has grown by 286 million euros (+24%).
In Q3 2023, overdue loan portfolio of Coop Pank increased from the level of 2% to the level of 2.1%. A year ago, overdue loan portfolio was at the level of 1.4%.
Impairment costs of financial assets in Q3 2023 were 1.3 million euros, which is 0.6 million euros (+93%) more than in Q3 2022.
Net income of Coop Pank in Q3 2023 was 22.7 million euros, having grown 2% over the quarter and 64% over the year. Operating expenses reached 9 million euros in Q3 – operating expenses increased 5% in the quarterly comparison and 30% in the annual comparison.
In Q3 2023, net profit of Coop Pank was 11.1 million euros, which is 7% more than in the previous quarter and 93% more than a year ago. In Q3 2023, cost to income ratio of the bank was 40% and return on equity was 25.9%.
As of 30 September 2023, Coop Pank has 37,200 shareholders, 200 (+0.5%) shareholders have been added over the quarter.
Paavo Truu, Member of the Management Board and Chief Financial Officer of Coop Pank, comments the results:
“Taking into account the general economic environment, the loan portfolio of Coop Pank decreased at a good pace in the third quarter, and the past due loan portfolio continued to remain at the lowest level in the past years.
In the market, competition for customer deposits continued in the third quarter. We saw that more and more of the funds of Coop Pank's customers moved from demand deposits to term deposits. This does not affect the bank's strong liquidity position. While in the first half of the year, all the banks mainly competed for term deposits, in the third quarter the competition for demand deposits also increased, which will probably intensify even more in the coming months. Coop Pank has always paid considerable interest on demand deposits of both private and business customers and will continue to pay it in the future.
Attractive deposit offers have brought a lot of new customers to the Coop Pank, some of whom have come to make only term deposits and not settlement transactions, therefore we saw only the average growth of the number of active customers in the third quarter. We are working to ensure that fixed-term depositors also start using Coop Pank's everyday banking services.
Due to the growth of business volumes and keeping costs under control, Coop Pank's performance indicators have improved from quarter to quarter. In the third quarter, it resulted with a record quarterly profit of 11.1 million euros and a cost-income ratio of 40% and a return on equity of 25.9%.”
| Income statement, in th. of euros | Q3 2023 | Q2 2023 | Q3 2022 | 9M 2023 | 9M 2022 |
| Net interest income | 21 257 | 21 044 | 12 721 | 60 672 | 34 945 |
| Net fee and commission income | 1 147 | 1 183 | 978 | 3 359 | 2 677 |
| Net other income | 334 | 163 | 148 | 758 | 475 |
| Total net income | 22 738 | 22 390 | 13 847 | 64 789 | 38 097 |
| Payroll expenses | -5 297 | -4 900 | -4 057 | -14 739 | -11 286 |
| Marketing expenses | -630 | -633 | -442 | -1 676 | -1 232 |
| Rental and office expenses, depr. of tangible assets | -673 | -726 | -684 | -2 098 | -2 041 |
| IT expenses and depr. of intangible assets | -1 204 | -1 082 | -1 086 | -3 439 | -3 176 |
| Other operating expenses | -1 218 | -1 224 | -660 | -3 230 | -2 003 |
| Total operating expenses | -9 022 | -8 565 | -6 929 | -25 182 | -19 738 |
| Net profit before impairment losses | 13 716 | 13 825 | 6 918 | 39 607 | 18 359 |
| Impairment costs on financial assets | -1 296 | -2 232 | -672 | -5 155 | -3 347 |
| Net profit before income tax | 12 420 | 11 593 | 6 246 | 34 452 | 15 012 |
| Income tax expenses | -1 344 | -1 227 | -499 | -3 634 | -1 176 |
| Net profit for the period | 11 076 | 10 366 | 5 747 | 30 818 | 13 836 |
| Statement of financial position, in th. of euros | 30.09.2023 | 30.06.2023 | 31.12.2022 | 30.09.2022 |
| Cash and cash equivalents | 404 911 | 459 631 | 364 878 | 287 158 |
| Debt securities | 31 765 | 27 877 | 18 747 | 14 540 |
| Loans to customers | 1 493 985 | 1 458 201 | 1 300 775 | 1 208 457 |
| Other assets | 30 527 | 32 500 | 29 776 | 29 879 |
| Total assets | 1 961 188 | 1 978 209 | 1 714 176 | 1 540 035 |
| Customer deposits and loans received | 1 707 214 | 1 754 746 | 1 508 126 | 1 354 345 |
| Other liabilities | 27 451 | 19 967 | 18 795 | 19 659 |
| Subordinated debt | 50 148 | 38 139 | 38 139 | 43 211 |
| Total liabilities | 1 784 813 | 1 812 852 | 1 565 060 | 1 417 215 |
| Equity | 176 375 | 165 357 | 149 116 | 122 820 |
| Total liabilities and equity | 1 961 188 | 1 978 209 | 1 714 176 | 1 540 035 |
The reports of Coop Pank are available at:
Coop Pank will organise a webinar on 20 October 2023 at 9:00 AM, to present the financial results of Q3 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 175,000 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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