Coop Pank — Earnings Release 2023

Oct 20, 2023

Company Coop Pank AS

Type

Company Release

Category Other corporate action

Disclosure time 20 Oct 2023 08:00:00 +0300

Attachments:

• Coop Pank 2023 Q3 tulemused_EN.pdf (http://oam.fi.ee/en/download?id=7727)
• Coop Pank 2023-09_EN.pdf (http://oam.fi.ee/en/download?id=7728)
• Interim report_9m 2023_EN.pdf (http://oam.fi.ee/en/download?id=7729)
• Coop Pank 2023 Q3 tulemused_ET.pdf (http://oam.fi.ee/en/download?id=7730)
• Coop Pank 2023-09_ET.pdf (http://oam.fi.ee/en/download?id=7731)
• Vahearuanne_9k 2023_ET.pdf (http://oam.fi.ee/en/download?id=7732)

Currency

Title

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 euros					Q3 2023 Q2 2023 Q3 2022 9M 2023 9M 2022
------------------------------------------------------------------------------- Net interest income			21 257	21 044	12 721	60 672	34 945

Net fee and commission income	1 147	1 183	978	3 359	2 677
Net other income	334	163	148	758	475
------------------------------------------------------------------------------- Total net income	22 738	22 390	13 847	64 789	38 097
------------------------------------------------------------------------------- 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 losses	13 716	13 825	6 918	39 607	18 359
Impairment costs on financial assets	-1 296	-2 232	-672	-5 155	-3 347
Net profit before income tax	12 420	11 593	6 246	34 452	15 012
Income tax expenses	-1 344	-1 227	-499	-3 634	-1 176
------------------------------------------------------------------------------- Net profit for the period	11 076	10 366	5 747	30 818	13 836
------------------------------------------------------------------------------- Statement of financial position,

in th. of euros -------------------------------------------------------------------------------		30.09.2023 30.06.2023 31.12.2022 30.09.2022
Cash and cash equivalents	404 911	459 631	364 878	287 158
Debt securities	31 765	27 877	18 747	14 540
Loans to customers	1 493 985	1 458 201	1 300 775	1 208 457
Other assets	30 527	32 500	29 776	29 879
------------------------------------------------------------------------------- Total assets	1 961 188	1 978 209	1 714 176	1 540 035
------------------------------------------------------------------------------- Customer deposits and loans received	1 707 214	1 754 746	1 508 126	1 354 345
Other liabilities	27 451	19 967	18 795	19 659

Subordinated debt -------------------------------------------------------------------------------		50 148		38 139		38 139	43 211
Total liabilities -------------------------------------------------------------------------------	1 784 813		1 812 852		1 565 060		1 417 215
Equity -------------------------------------------------------------------------------		176 375		165 357		149 116	122 820
Total liabilities and equity	1 961 188		1 978 209		1 714 176		1 540 035
-------------------------------------------------------------------------------

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 (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 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 CFO Phone: +372 516 0231 E-mail: paavo.truu@cooppank.ee (mailto:paavo.truu@cooppank.ee)