By the end of the Q2 2023, Coop Pank had 167,000 customers, during the quarter the number of customers increased by 12,000 (+8%). The bank had 76,100 active customers, during the quarter the number of active customers increased by 6,000 (+9%).
In Q2 2023, volume of deposits in Coop Pank increased by 242 million euros (+16%), reaching total of 1.76 billion euros. Deposits from private clients showed the fastest growth, increasing by 127 million euros: demand deposits decreased by 30 million euros and term deposits increased by 155 million euros. Deposits from domestic business customers increased by 107 million euros: demand deposits decreased by 1 million euro and term deposits increased by 108 million euros. Deposits from international deposit platform Raisin and other financing increased by 10 million euros. Compared to Q2 2022, volume of Coop Pank's deposits has increased by 506 million euros (+41%). In an annual comparison, share of term deposits of total deposits has increased from 51% to 67%. In Q2 2023, the bank’s financing cost was 1.8%, at the same time last year the financing cost was 0.5%.
In Q2 2023, net loan portfolio of Coop Pank increased by 111 million euros (+8%), reaching 1.46 billion euros. Business loans portfolio showed the fastest growth, increasing the volume by 53 million euros (+9%). Home loans portfolio increased by 34 million euros (+6%), leasing portfolio increased by 17 million euros (+12%) and consumer finance portfolio increased by 8 million euros (+9%). Compared to Q2 2022, total loan portfolio of Coop Pank has grown by 327 million euros (+29%).
In Q2 2023, overdue loan portfolio of Coop Pank increased from the level of 1.8% to the level of 2.0%. A year ago, overdue loan portfolio was at the level of 1.7%.
Impairment costs of financial assets in Q2 2023 were 2.2 million euros, which is 1.1 million euros (+89%) more than in Q2 2022.
Net income of Coop Pank in Q2 2023 was 22.4 million euros, having grown 14% over the quarter and 76% over the year. Operating expenses reached 8.6 million euros in Q2 – operating expenses increased 13% in the quarterly comparison and 30% in the annual comparison.
In Q2 2023, net profit of Coop Pank was 10.4 million euros, which is 11% more than in the previous quarter and 126% more than a year ago. In Q2 2023, cost to income ratio of the bank was 38% and return on equity was 25.6%.
As of 30 June 2023, Coop Pank has 37,000 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 increased its business volume at a record pace in the second quarter. All business lines were behind the growth of the loan portfolio: business loan, home loan, car leasing and consumer financing. This shows that despite the fragile macroeconomic environment and increased interest rates, the demand for loans in the market is still high.
We see that companies and households are coping well with the rising loan payments due to the rapid rise in Euribor. The good management of loan payments is due to the fact, that unemployment continues to be low, people's incomes are growing, inflation is receding and lending has taken place responsibly. However, we do see some growth in short-term debts, but we must consider that the level of debtors was just at an all-time low level. Short-term debts are generally paid before the next loan payment, and in consequence the quality of the loan portfolio remains good.
Attracting deposits has become a serious challenge. In the market, deposits have not increased since the beginning of the year – deposits of private individuals have increased by 0.5 billion euros, and deposits of corporate clients have decreased by the same amount. This has increased the competition of banks for the available resource. As money has come to have a price, a large amount of demand deposits is converting to term deposits with a higher interest rate. The bank's shareholders may not be happy about it, but customers and depositors are clearly the winners of that.
Coop Pank's second quarter income growth is due to the record growth of business volumes as well as additional interest income resulting from the rise in Euribor. In expenses, we see increasing interest expenses. We have also increased future-oriented loan provisions due to the weak macro-economic environment.
The second quarter ended with Coop Pank's best quarterly net profit (10.4 million euros), the lowest cost-to-income ratio (38%) and a record return on equity (25.6%).”
| Income statement, in th. of euros | Q2 2023 | Q1 2023 | Q2 2022 | 6M 2023 | 6M 2022 |
| Net interest income | 21 044 | 18 372 | 11 629 | 39 416 | 22 224 |
| Net fee and commission income | 1 183 | 1 028 | 904 | 2 211 | 1 699 |
| Net other income | 163 | 261 | 224 | 424 | 327 |
| Total net income | 22 390 | 19 661 | 12 757 | 42 051 | 24 250 |
| Payroll expenses | -4 900 | -4 542 | -3 780 | -9 445 | -7 229 |
| Marketing expenses | -633 | -412 | -399 | -1 045 | -790 |
| Rental and office expenses, depr. of tangible assets | -726 | -700 | -669 | -1 425 | -1 357 |
| IT expenses and depr. of intangible assets | -1 082 | -1 155 | -1 115 | -2 236 | -2 089 |
| Other operating expenses | -1 224 | -788 | -647 | -2 012 | -1 344 |
| Total operating expenses | -8 565 | -7 595 | -6 610 | -16 160 | -12 809 |
| Net profit before impairment losses | 13 825 | 12 066 | 6 147 | 25 891 | 11 441 |
| Impairment costs on financial assets | -2 232 | -1 627 | -1 181 | -3 859 | -2 675 |
| Net profit before income tax | 11 593 | 10 439 | 4 966 | 22 032 | 8 766 |
| Income tax expenses | -1 227 | -1 063 | -378 | -2 291 | -677 |
| Net profit for the period | 10 366 | 9 375 | 4 588 | 19 741 | 8 089 |
| Statement of financial position, in th. of euros | 30.06.2023 | 31.03.2023 | 31.12.2022 | 30.06.2022 |
| Cash and cash equivalents | 459 631 | 334 074 | 364 878 | 261 821 |
| Debt securities | 27 877 | 18 931 | 18 747 | 4 968 |
| Loans to customers | 1 458 201 | 1 346 822 | 1 300 775 | 1 131 367 |
| Other assets | 32 500 | 30 048 | 29 776 | 30 711 |
| Total assets | 1 978 209 | 1 729 876 | 1 714 176 | 1 428 868 |
| Customer deposits and loans received | 1 754 746 | 1 512 627 | 1 508 126 | 1 248 711 |
| Other liabilities | 19 967 | 20 599 | 18 795 | 19 707 |
| Subordinated debt | 38 139 | 38 101 | 38 139 | 43 164 |
| Total liabilities | 1 812 852 | 1 571 327 | 1 565 061 | 1 311 582 |
| Equity | 165 357 | 158 550 | 149 116 | 117 287 |
| Total liabilities and equity | 1 978 209 | 1 729 876 | 1 714 176 | 1 428 868 |
The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting
Coop Pank will organise a webinar on 20 July 2023 at 9:00 AM, to present the financial results of Q2 2023. For participation, please register in advance at: https://bit.ly/CP-20-07-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 167,000 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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