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Published: 2023-10-20 07:00:00 CEST
Coop Pank
Quarterly report

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 eurosQ3 2023Q2 2023Q3 20229M 20239M 2022
Net interest income21 25721 04412 72160 67234 945
Net fee and commission income1 1471 1839783 3592 677
Net other income334163148758475
Total net income22 73822 39013 84764 78938 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 losses13 71613 8256 91839 60718 359
Impairment costs on financial assets-1 296-2 232-672-5 155-3 347
Net profit before income tax12 42011 5936 24634 45215 012
Income tax expenses-1 344-1 227-499-3 634-1 176
Net profit for the period11 07610 3665 74730 81813 836

Statement of financial position, in th. of euros30.09.202330.06.202331.12.202230.09.2022
Cash and cash equivalents404 911459 631364 878287 158
Debt securities31 76527 87718 74714 540
Loans to customers1 493 9851 458 2011 300 7751 208 457
Other assets30 52732 50029 77629 879
Total assets1 961 1881 978 2091 714 1761 540 035
Customer deposits and loans received1 707 2141 754 7461 508 1261 354 345
Other liabilities27 45119 96718 79519 659
Subordinated debt50 14838 13938 13943 211
Total liabilities1 784 8131 812 8521 565 0601 417 215
Equity176 375165 357149 116122 820
Total liabilities and equity1 961 1881 978 2091 714 1761 540 035

The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting

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: https://bit.ly/CP-20-10-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 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
Phone: +372 516 0231
E-mail: paavo.truu@cooppank.ee


Coop Pank 2023-09_EN.pdf
Coop Pank 2023 Q3 tulemused_EN.pdf
Interim report_9m 2023_EN.pdf