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Coop Pank unaudited financial results for Q2 2022
By the end of the Q2 2022, Coop Pank had 130,700 customers, during the quarter the number of customers increased by 8,300 (+7%). The bank had 58,700 active customers, during the quarter the number of active customers increased by 4,500 (+8%).
In Q2 2022, volume of deposits in Coop Pank increased by 100 million euros (+9%), reaching total of 1.25 billion euros. Deposits from domestic companies showed the fastest growth, increasing by 87 million euros, of which 31 million were demand deposits and 57 million were term deposits. Deposits from private clients increased by 4 million euros, demand deposits increased by 11 million euros and term deposits decreased by 7 million euros. Deposits from international deposit platform Raisin and other financing increased by 9 million euros. Compared to Q2 2021, volume of Coop Pank's deposits has increased by 357 million euros (+40%). In an annual comparison, share of demand deposits to total deposits has increased from 44% to 49%. In Q2 2022, the bank’s financing cost was 0.5%, at the same time last year the financing cost was 0.8%.
In Q2 2022, net loan portfolio of Coop Pank increased by 91 million euros (+9%), reaching 1.13 billion euros. Home mortgage loan portfolio showed the fastest growth, increasing the volume by 40 million euros (+10%). Business loans portfolio increased by 36 million euros (+8%), leasing portfolio increased by 10 million euros (+9%) and consumer finance portfolio increased by 6 million euros (+9%). Compared to Q2 2021, total loan portfolio of Coop Pank has grown by 359 million euros (+46%).
In Q2 2022, overdue loan portfolio of Coop Pank remained for the fourth consecutive quarter at the level of 2%. In an annual comparison, overdue loan portfolio decreased from the level of 3% to 2%.
Impairment costs of financial assets in Q2 2022 were 1.2 million euros, which is 0.4 million euros (+57%) more than in Q2 2021.
Net income of Coop Pank in Q2 2022 was 12.8 million euros, having grown 11% over the quarter and 37% over the year. Operating expenses reached 6.6 million euros in Q2 – operating expenses increased in the quarterly comparison by 7% and by 24% in the annual comparison.
In Q2 2022, net profit of Coop Pank was 4.6 million euros, which is 31% more than in the previous quarter and 51% more than a year ago. In Q2 2022, cost to income ratio of the bank was 52% and return on equity was 15.8%.
As of 30 June 2022, Coop Pank has ca 30 thousand shareholders, number of shareholders has been stable during the quarter.
Margus Rink, Chairman of the Management Board of Coop Pank, comments the results:
“In the second quarter of the year Coop Pank showed again decent growth. We continue to meet all the goals promised to investors: the bank's business volumes have increased by 40% over the year, the quarterly cost-income ratio has fallen to 52% and the return on equity has risen to 15.8%. The market share of Coop Pank's loan portfolio increased to 5% and the market share of the deposit portfolio to 4.4%. All this shows that the bank is operating with increasingly better performance indicators and our impact in the Estonian economy is increasing.
To support the growth strategy, Coop Pank successfully raised additional capital in the second quarter and carried out a target issue of bonds to professional investors. Despite the turbulent times in the financial markets, the issue of bonds succeeded and the bank brought 16.1 million euros of capital for growth.
In April, the general meeting of Coop Pank decided to pay investors dividends for 2021 in the net amount of 3 euro cents per share. This was the first time that the bank has paid dividends to its investors. A total of 2.74 million euros was paid out to almost 30,000 shareholders, of which 98% was received in the bank accounts of Estonian residents. In accordance with the dividend policy approved by the shareholders, Coop Pank will henceforth pay out 25% of its annual net profit as dividends.”
Income statement, in th. euros | Q2 2022 | Q1 2022 | Q2 2021 | 6M 2022 | 6M 2021 |
Net interest income | 11 629 | 10 595 | 8 325 | 22 224 | 16 368 |
Net fee and commission income | 904 | 795 | 783 | 1 699 | 1 431 |
Net other income | 224 | 102 | 233 | 327 | 435 |
Total net income | 12 757 | 11 492 | 9 341 | 24 250 | 18 234 |
Payroll expenses | -3 780 | -3 449 | -3 065 | -7 229 | -5 944 |
Marketing expenses | -399 | -391 | -314 | -790 | -619 |
Rental and office expenses, depr. of tangible assets | -669 | -688 | -575 | -1 357 | -1 155 |
IT expenses and depr. of intangible assets | -1 116 | -973 | -809 | -2 089 | -1 549 |
Other operating expenses | -646 | -697 | -574 | -1 344 | -1 192 |
Total operating expenses | -6 610 | -6 198 | -5 336 | -12 809 | -10 459 |
Net profit before impairment losses | 6 147 | 5 293 | 4 005 | 11 441 | 7 775 |
Impairment costs on financial assets | -1 181 | -1 494 | -753 | -2 675 | -1 524 |
Net profit before income tax | 4 966 | 3 800 | 3 252 | 8 766 | 6 251 |
Income tax expenses | -378 | -299 | -220 | -677 | -384 |
Net profit for the period | 4 588 | 3 500 | 3 032 | 8 089 | 5 867 |
Statement of financial position, in thousands of euros | 30.06.2022 | 31.03.2022 | 31.12.2021 | 30.06.2021 |
Cash and cash equivalents | 261 821 | 230 938 | 252 799 | 221 666 |
Debt securities | 4 969 | 4 964 | 5 932 | 3 678 |
Loans to customers | 1 131 367 | 1 040 209 | 953 396 | 772 516 |
Other assets | 30 711 | 29 573 | 29 849 | 26 513 |
Total assets | 1 428 868 | 1 305 683 | 1 241 976 | 1 024 373 |
Customer deposits and loans received | 1 248 711 | 1 148 536 | 1 098 746 | 891 397 |
Other liabilities | 19 706 | 14 776 | 14 423 | 11 983 |
Subordinated debt | 43 164 | 27 111 | 17 064 | 17 064 |
Total liabilities | 1 311 581 | 1 190 422 | 1 130 233 | 920 443 |
Equity | 117 287 | 115 261 | 111 743 | 103 930 |
Total liabilities and equity | 1 428 868 | 1 305 683 | 1 241 976 | 1 024 373 |
The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting
Coop Pank will organise a webinar on 20 July 2022 at 10:00 AM, to present the financial results of Q2 2022. For participation, please register in advance at:
https://bit.ly/CP-veebiseminar-20-07-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 130,700 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 330 stores.
Additional information:
Paavo Truu
CFO
Phone: +372 516 0231
E-mail: paavo.truu@cooppank.ee
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