By the end of Q1 2024, Coop Pank had 189,000 customers, an increase of 7,000 (+4%) in the quarter and 34,000 (+22%) over the year. The bank had 84,400 active customers, an increase of 2,400 (+3%) in the quarter and 14,300 (+20%) for the year.
In the first quarter of 2024, Coop Punk's deposit volume decreased by EUR 29 million (-2%) to a total of EUR 1.69 billion. Deposits from retail customers increased by 11 million euros, demand deposits by 8 million euros and term deposits by 3 million euros. Deposits from domestic corporate customers decreased by EUR 15 million, demand deposits increased by EUR 6 million and term deposits decreased by EUR 21 million. Deposits and other loans from the international deposit platform Raisin decreased by EUR 24 million. Compared to Q1 2023, Coop Pank's deposit volume increased by €181 million (+12%). In the annual comparison, the share of fixed deposits in total deposits increased from 59% to 70%. The bank's funding cost in the first quarter of 2024 was 3.5%, compared to 1.5% in the same period last year.
In the first quarter of 2024, Coop Punk's net loan portfolio increased by EUR 40 million (+3%) to EUR 1.53 billion. Business and mortgage portfolios and leases showed the greatest growth. The volume of the mortgage portfolio increased by €20 million (+3%), the volume of the business loan portfolio by €11 million (+2%) and the lease portfolio by €10 million (+7%). The consumer finance portfolio decreased by €1 million (-1%). Compared to Q1 2023, Coop Pank's total loan portfolio increased by €184 million (+14%).
In the first quarter of 2024, Coop Punk's delinquent loan portfolio increased from the 2% level to the 2.4% level. A year ago, the delinquent loan portfolio was at a level of 1.8%.
Impairment charges for financial assets in the first quarter of 2024 amounted to €0.6 million, a decrease of €0.6 million (-50%) compared to the previous quarter and a decrease of €1.1 million (-65%) compared to the first quarter of 2023.
Coop Punk's net income for the first quarter of 2024 was EUR 20.2 million, a decrease of 1% on a quarterly basis and an increase of 3% on an annual basis. Operating expenses amounted to 9 million euros in the first quarter. Operating expenses decreased 5% on a quarterly basis and increased 24% on an annual basis.
Coop Punk's net income for the first quarter of 2024 was €9.1 million, 9% higher than the previous quarter and 3% lower than a year ago. In the first quarter of 2024, the bank's cost-to-income ratio was 47% and its return on equity was 19.2%.
As of March 31, 2024, Coop Punk has 37,100 shareholders.
Commenting on the results, Margus Link, Chairman of Cooppunk's Management Board, said:
“We are currently operating in an environment where two years of recession have turned into stagnation, and we hope that in the coming year we will see the first signs of the economy returning to a growth phase. In this context, The quarterly increase in Cooppunk's loan portfolio by 40 million euros must be considered a decent result. We are also pleased with the steady growth in the number of customers.
At the end of last year, the market expected a gradual decline in interest rates starting this year, but now the starting point for the decline in interest rates has shifted to the summer, and the market expects this year's decline in interest rates to slow down somewhat. In this environment, banks' interest income has peaked and is likely to decline going forward. Interest costs have also peaked, and deposit rates are much lower today than they were a few months ago. Going forward, banks' net interest income is likely to increase only at the expense of increased business volumes.
The quality of our loan portfolio has withstood the recession well over several years. Last quarter, we resolved issues with several corporate customers and removed discounts on these loans, resulting in very low credit costs. At the same time, the number of short-term debtors in the mortgage portfolio has increased slightly, but in most cases they find a solution before the next loan comes due.
In summary, increased trading volumes, sustained high interest rates and low credit costs ensured very reasonable profits and performance indicators in the first quarter of this year. We have strong capital strength and enough deposits to fund loan requests from businesses and individuals, which will put the Estonian economy on a growth trajectory. Economic growth would directly cover national budget deficits, relieving pressure to raise taxes and cut spending. ”
|
The income statement is as follows.euro's |
Q1 2024 |
Q4 2023 |
Q1 2023 |
|
net interest income |
19 082 |
20 594 |
18 372 |
|
Net fees and commission income |
1 014 |
1 489 |
1 028 |
|
Other net income |
125 |
-1 666 |
261 |
|
Total net profit |
20 221 |
20 417 |
19 661 |
|
Salary expenses |
-5 409 |
-5 495 |
-4 542 |
|
marketing costs |
-533 |
-912 |
-412 |
|
Rent and office expenses, reduced tangible assets |
-795 |
-678 |
-700 |
|
IT expenses and depreciation of intangible assets |
-1 405 |
-1 363 |
-1 155 |
|
Other operating expenses |
-1 286 |
-1 498 |
-788 |
|
total operating expenses |
-9 427 |
-9 948 |
-7 596 |
|
Net income before impairment |
10 794 |
10 469 |
12 065 |
|
Impairment charges for financial assets |
-576 |
-1 148 |
-1 627 |
|
Net profit before tax |
10 218 |
9 322 |
10 438 |
|
income tax expense |
-1,080 |
-935 |
-1 063 |
|
net income |
9 138 |
8 386 |
9 375 |
|
|
|
|
|
|
Earnings per share, euro |
0,09 |
0,08 |
0,09 |
|
Diluted earnings per share, euro |
0,09 |
0,08 |
0,09 |
|
Statement of Financial Position, Chapter 1.euro's |
March 31, 2024 |
2023.12.31 |
2023.03.31 |
|
cash and cash equivalents |
380 644 |
428 354 |
334 074 |
|
debt securities |
36 460 |
36 421 |
18 932 |
|
financing to customers |
1 531 038 |
1 490 873 |
1 346 822 |
|
Other assets |
31 320 |
30 564 |
30 048 |
|
Total assets |
1 979 461 |
1 986 212 |
1 729 876 |
|
Receipt of customer deposits and loans |
1 693 254 |
1 721 765 |
1 512 627 |
|
Other debts |
27 698 |
28 436 |
20 599 |
|
subordinated debt |
63 239 |
50 187 |
38 101 |
|
Total debt |
1 784 191 |
1 800 387 |
1 571 327 |
|
capital |
195 270 |
185 825 |
158 549 |
|
Total debt and equity |
1 979 461 |
1 986 212 |
1 729 876 |
The Coop Pank report is available at: https://www.cooppank.ee/en/reporting
Coop Pank will host a webinar on April 18, 2024 at 9:00 a.m. to announce first quarter 2024 financial results. To participate, please pre-register at: https://bit.ly/CP-180424-registreerimine
The webinar will be recorded and published on the company website www.cooppank.ee and on top YouTube channel.
Estonian-based Cooppunk is one of the five universal banks operating in Estonia. The bank has 189,000 banking customers every day. Cooppunk aims to leverage the synergies created by the interaction of retail and banking to bring everyday banking services closer to people's homes. The bank's strategic shareholder is Coop Eesti, a domestic retail chain consisting of 320 stores.
Additional Information:
Paavo True
CFO
Phone: +372 516 0231
Email: paavo.truu@cooppank.ee
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