By the end of the Q3 2024, Coop Pank had 202,000 customers, increased by 6,000 customers in the quarter (+3%) and by 27,000 in the year (+15%). The bank had 90,100 active customers, increased by 600 (+1%) in the quarter and by 12,700 (+16%) in the year.
In Q3 2024, volume of deposits in Coop Pank increased by 99 million euros (+6%), reaching total of 1.84 billion euros. Deposits from private clients increased by 9 million euros: demand deposits increased by 3 million euros and term deposits increased by 6 million euros. Deposits from domestic business customers increased by 11 million euros: demand deposits increased by 17 million euros and term deposits decreased by 6 million euros. Deposits from the international deposit platform Raisin and other financing increased by 79 million euros. Compared to Q3 2023, volume of Coop Pank's deposits has increased by 132 million euros (+8%). In an annual comparison, share of demand deposits of total deposits has increased from 31% to 32%. In Q3 2024, the bank's financing cost was 3.3%, at the same time last year the financing cost was 2.9%.
In Q3 2024, net loan portfolio of Coop Pank increased by 40 million euros (+2%), reaching 1.66 billion euros. The volumes of home loan portfolio increased by 31 million euros (+5%), the volumes of business loan portfolio increased by 4 million euros (+1%), the leasing portfolio increased by 3 million euros (+2%) and consumer finance portfolio increased by 1 million euros (+1%). Compared to Q3 2023, total loan portfolio of Coop Pank has increased by 167 million euros (+11%).
In Q3 2024, overdue loan portfolio of Coop Pank increased from the level of 2.2% to the level of 2.4%. A year ago, overdue loan portfolio was at the level of 2.1%.
Impairment costs of financial assets in Q3 2024 were 1.0 million euros, which is 0.2 million euros (-17%) less than in the previous quarter and 0,3 million euros (-21%) less than in Q3 2023.
Net income of Coop Pank in Q3 2024 was 21.2 million euros, increasing by 4% in a quarterly comparison and decreasing by 7% in an annual comparison. Operating expenses reached 10.3 million euros in Q3, operating expenses increased by 2% in the quarterly comparison and 14% in the annual comparison.
In Q3 2024, net profit of Coop Pank was 8.6 million euros, which is 8% more than in the previous quarter and 22% less than a year ago. In Q3 2024, cost to income ratio of the bank was 48% and return on equity was 17.3%.
As of 30 September 2024, Coop Pank has 36,400 shareholders.
Margus Rink, Chairman of the Management Board of Coop Pank, comments the results:
"At the beginning of September, the 200,000th customer joined Coop Pank. We continue to rapidly grow our customer base: an average, the number of our customers increases by nearly 2,000 and the number of customers actively using our services by nearly 1,000 every month.
In the third quarter, the growth of Coop Pank's loan portfolio was driven by private customer home loans. The growth of the business customers loan portfolio was modest. Over the year, the loan portfolio of private and business customers of Estonian banks has grown by nearly 6% (€1.6 billion), while the loan portfolio of Coop Pank has grown by nearly 11% (€167 million). Thus, Coop Pank's loan volumes grow twice as fast as the market.
The quality of the loan portfolio continues to be very good, and the long stagnation in the economy has not affected the payment behaviour of customers.
The interest rate environment is in a downward trend. Since the fall of last year, the 6-month Euribor has fallen by almost 1 percentage point (from 4.1% to 3.1%). Interest on deposits has also responded: the interest paid on annual deposits has decreased by 1 percentage point (from 4.3% to 3.3%). As a result of the mentioned trends, our net interest margin fell from 4.4% to 3.9% during the year. In a falling interest rate environment, the bank's revenues can only grow at the expense of the growth of business volumes, and that is how it has been at Coop Pank.
In summary, with the bank's performance indicators, after the extraordinary year of 2023 with high interest levels, we are back in reality, i.e. at the level of 2022. According to Coop Pank's long-term goals, our cost-income ratio is below 50% and our return on equity is above 15%."
| Income statement, in th. of euros | Q3 2024 | Q2 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
| Net interest income | 20 021 | 19 319 | 21 257 | 58 420 | 60 672 |
| Net fee and commission income | 1 040 | 1 000 | 1 147 | 3 054 | 3 359 |
| Net other income | 167 | 146 | 334 | 438 | 758 |
| Total net income | 21 228 | 20 464 | 22 738 | 61 912 | 64 789 |
| Payroll expenses | -6 138 | -5 858 | -5 297 | -17 405 | -14 739 |
| Marketing expenses | -593 | -775 | -630 | -1 902 | -1 676 |
| Rental and office expenses, depr. of tangible assets | -729 | -775 | -673 | -2 299 | -2 098 |
| IT expenses and depr. of intangible assets | -1 579 | -1 474 | -1 203 | -4 457 | -3 440 |
| Other operating expenses | -1 221 | -1 208 | -1 218 | -3 716 | -3 230 |
| Total operating expenses | -10 261 | -10 091 | -9 022 | -29 777 | -25 182 |
| Net profit before impairment losses | 10 967 | 10 374 | 13 716 | 32 135 | 39 607 |
| Impairment costs on financial assets | -1 022 | -1 224 | -1 296 | -2 822 | -5 155 |
| Net profit before income tax | 9 945 | 9 150 | 12 420 | 29 313 | 34 452 |
| Income tax expenses | -1 296 | -1 152 | -1 344 | -3 528 | -3 634 |
| Net profit for the period | 8 649 | 7 998 | 11 076 | 25 785 | 30 818 |
| Earnings per share, eur | 0,08 | 0,08 | 0,11 | 0,25 | 0,30 |
| Diluted earnings per share, eur | 0,08 | 0,08 | 0,11 | 0,25 | 0,30 |
| Statement of financial position, in th. of euros | 30.09.2024 | 30.06.2024 | 31.12.2023 | 30.09.2023 |
| Cash and cash equivalents | 404 472 | 335 710 | 428 354 | 404 911 |
| Debt securities | 37 445 | 36 980 | 36 421 | 31 765 |
| Loans to customers | 1 661 152 | 1 621 000 | 1 490 873 | 1 493 985 |
| Other assets | 31 956 | 32 608 | 30 564 | 30 527 |
| Total assets | 2 135 025 | 2 026 298 | 1 986 212 | 1 961 188 |
| Customer deposits and loans received | 1 838 626 | 1 739 709 | 1 721 765 | 1 707 214 |
| Other liabilities | 28 026 | 28 121 | 28 435 | 27 451 |
| Subordinated debt | 63 410 | 63 148 | 50 187 | 50 148 |
| Total liabilities | 1 930 062 | 1 830 978 | 1 800 387 | 1 784 813 |
| Equity | 204 963 | 195 320 | 185 825 | 176 375 |
| Total liabilities and equity | 2 135 025 | 2 026 298 | 1 986 212 | 1 961 188 |
The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting
Coop Pank will organise a webinar on 18 October 2024 at 9:00 AM, to present the financial results of Q3 2024. For participation, please register in advance at: https://bit.ly/18102024-registreerumine-veebiseminarile
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 202,000 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
