Coop Pank — Earnings Release 2022

Apr 20, 2022

Company Coop Pank AS

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 20 Apr 2022 08:00:00 +0300

Attachments:

• Coop Pank 2022 Q1 results_EN.pdf (http://oam.fi.ee/en/download?id=6356)
• Coop Pank 2022_03_EN.pdf (http://oam.fi.ee/en/download?id=6357)
• Coop Pank interim report_3m 2022_EN.pdf (http://oam.fi.ee/en/download?id=6358)
• Coop Pank 2022 Q1 tulemused_ET.pdf (http://oam.fi.ee/en/download?id=6359)
• Coop Pank 2022_03_ET.pdf (http://oam.fi.ee/en/download?id=6360)
• Coop Pank vahearuanne_3k 2022_ET.pdf (http://oam.fi.ee/en/download?id=6361)

Currency

Title

Coop Pank unaudited financial results for Q1 2022

By the end of the Q1 2022, Coop Pank had 122,400 customers, during the quarter the number of customers increased by 7,800 (+7%). The bank had 54,200 active customers, during the quarter the number of active customers increased by 3,200 (+6%).

In Q1 2022, volume of deposits in Coop Pank increased by 50 million euros (+5%), reaching total of 1.15 billion euros. Deposits from domestic companies showed the fastest growth, increasing by 78 million euros, of which 42 million were demand deposits and 36 million were term deposits. Deposits from private clients increased by 11 million euros, demand deposits increased by 15 million euros and time deposits decreased by 4 million euros. Deposits from international deposit platform Raisin and other financing decreased by 39 million euros. Compared to Q1 2021, volume of Coop Pank's deposits has increased by 300 million euros (+35%). In an annual comparison, share of demand deposits to total deposits has increased from 39% to 50%. In Q1 2022, the bank's financing cost was 0.5%, at the same time last year the financing cost was 0.8%.

In Q1 2022, net loan portfolio of Coop Pank increased by 87 million euros (+9%), reaching 1.04 billion euros. Business loans portfolio showed the fastest growth, increasing the volume by 45 million euros (+10%). Home loans portfolio increased by 32 million euros (+9%), leasing portfolio increased by 7 million euros (+8%) and consumer finance portfolio increased by 3 million euros (+4%). Compared to Q1 2021, total loan portfolio of Coop Pank has grown by 344 million euros (+50%).

In Q1 2022, overdue loan portfolio of Coop Pank remained for the third

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 Q1 2022 were 1.5 million euros, which is 0.7 million euros (+94%) more than in Q1 2021.

Net income of Coop Pank in Q1 2022 was 11.5 million euros, having grown 8% over the quarter and 29% over the year. Operating expenses reached 6.2 million euros in Q1 - operating expenses did not increase in the quarterly comparison, operating expenses increased by 21% in the annual comparison.

In Q1 2022, net profit of Coop Pank was 3.5 million euros, which is 6% more than in the previous quarter and 23% more than a year ago. In Q1 2022, cost to income ratio of the bank was 54% and return on equity was 12.3%.

As of 31 March 2022, Coop Pank has 29,862 shareholders, 2 063 (+7%) shareholders have been added over the quarter.

Margus Rink, Chairman of the Management Board of Coop Pank, comments the results:

"In the first quarter of this year, Coop Pank's loan portfolio exceeded one billion euros. This was one of the five goals we set ourselves during the IPO in 2019 and promised to meet at the latest by the end of 2022.

We have seen strong demand for private financing throughout the quarter, and the war in Ukraine that began at the end of February has so far had no effect on private loan demand.

In terms of corporate financing, we made one of the strongest quarters ever. At the same time, we can see that the ongoing war has had an impact on business confidence. Uncertainty about the future, deteriorating access to raw materials, rising energy prices, continuing supply chain failures are all forcing companies to re-evaluate and adjust their investment plans.

Based on the above, our quarterly results also include an extraordinary provision in the amount of 0.7 million euros to cover possible loan losses due to the impact of the war.

In addition to the growth of loan portfolio, also the volume of bank deposits continued to grow. The increase in the share of demand deposits to 50% is gratifying. This will reduce our costs of financing and allow us to compete even better on the credit market.

The growth of the loan portfolio led to a significant increase in income. At the same time, the bank's expenses remained at the same level as in the previous quarter. As a result of these trends, the bank's cost / income ratio fell to 54% and the return on equity rose to 12.3%."

Income statement, in thousands of euros -----------------------------------------------------------------------------		Q1 2022 Q4 2021 Q1 2021
Net interest income	10 595	9 824	8 043
Net fee and commission income	796	902	648
Net other income -----------------------------------------------------------------------------	101	-50	202
Total net income -----------------------------------------------------------------------------	11 492	10 676	8 893
Payroll expenses	-3 449	-3 182	-2 879
Marketing expenses	-391	-332	-306
Rental and office expenses, depr. of tangible assets	-688	-980	-579
IT expenses and depr. of intangible assets	-973	-1 013	-740
Other operating expenses -----------------------------------------------------------------------------	-698	-698	-619
Total operating expenses -----------------------------------------------------------------------------	-6 199	-6 205	-5 123
Net profit before impairment losses	5 293	4 471	3 770
Impairment costs on financial assets	-1 494	-963	-771
Net profit before income tax	3 799	3 508	2 999
Income tax expenses	-299	-213	-164
----------------------------------------------------------------------------- Net profit for the period -----------------------------------------------------------------------------	3 500	3 295	2 835

Statement of financial position, in thousands of euros		31.03.2022 31.12.2021 31.03.2021
------------------------------------------------------------------------------- Cash and cash equivalents	230 938	252 799	249 416
Debt securities	4 964	5 932	3 074
Loans to customers	1 040 209	953 396	695 721
Other assets	29 572	29 849	26 700
------------------------------------------------------------------------------- Total assets	1 305 683	1 241 976	974 911
------------------------------------------------------------------------------- Customer deposits and loans received	1 148 536	1 098 746	848 755

Other liabilities		14 775		14 423		8 626
Subordinated debt -------------------------------------------------------------------------------		27 111		17 064		17 111
Total liabilities	1 190 422		1 130 233		874 492
------------------------------------------------------------------------------- Equity		115 261		111 743	100 419
------------------------------------------------------------------------------- Total liabilities and equity -------------------------------------------------------------------------------	1 305 683		1 241 976		974 911

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

Coop Pank will organise a webinar on 20 April 2022 at 10:00 AM, to present the financial results of Q1 2022. For participation, please register in advance at: https://us06web.zoom.us/webinar/register/WN_HhEbAs6aQwuf6EUkkRmKaQ

The webinar will be recorded and published on the company's website www.cooppank.ee (http://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 122,400 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 (mailto:paavo.truu@cooppank.ee)