Coop Punk AS
By the end of Q3 2024, Coop Pank had 202,000 customers, an increase of 6,000 (+3%) in the quarter and 27,000 (+15%) over the year. The bank had 90,100 active customers, an increase of 600 (+1%) in the quarter and 12,700 (+16%) for the year.
In the third quarter of 2024, Coop Pank’s deposit volume increased by EUR 99 million (+6%), reaching a total of EUR 1.84 billion. Deposits from private customers increased by 9 million euros, with demand deposits increasing by 3 million euros and term deposits increasing by 6 million euros. Deposits from domestic corporate customers increased by 11 million euros, demand deposits increased by 17 million euros and term deposits decreased by 6 million euros. Deposits and other loans from the international deposit platform Raisin increased by €79 million. Compared to Q3 2023, Coop Pank’s deposit volume increased by €132 million (+8%). In the annual comparison, demand deposits as a percentage of total deposits increased from 31% to 32%. The bank’s cost of funding in the third quarter of 2024 was 3.3%, compared to 2.9% in the same period last year.
In the third quarter of 2024, Coop Punk’s net loan portfolio increased by EUR 40 million (+2%) to EUR 1.66 billion. The volume of the mortgage portfolio increased by EUR 31 million (+5%), the volume of the business loan portfolio increased by EUR 4 million (+1%), the volume of the lease portfolio increased by EUR 3 million (+2%) and the consumer Finance increased by €3 million (+2%). The portfolio increased by €1 million (+1%). Compared to Q3 2023, Coop Pank’s total loan portfolio increased by €167 million (+11%).
In the third quarter of 2024, Coop Punk’s delinquent loan portfolio increased from a level of 2.2% to a level of 2.4%. A year ago, the delinquent loan portfolio was at a level of 2.1%.
Impairment charges for financial assets amounted to EUR 1 million in the third quarter of 2024, a decrease of EUR 200,000 (-17%) compared to the previous quarter and EUR 300,000 (-21%) compared to the third quarter 2023.
Coop Punk’s net income for the third quarter of 2024 was EUR 21.2 million, an increase of 4% on a quarterly basis and a decrease of 7% on an annual basis. Operating expenses amounted to €10.3 million in the third quarter, with operating expenses increasing by 2% on a quarterly basis and 14% on a yearly basis.
Coop Punk’s net profit for the third quarter of 2024 was €8.6 million, 8% higher than the previous quarter and 22% lower than a year ago. In the third quarter of 2024, the bank’s cost-to-income ratio was 48% and its return on equity was 17.3%.
As of September 30, 2024, Coop Pank has 36,400 shareholders.
Commenting on the results, Margus Link, Chairman of Cooppunk’s Management Board, said:
“In early September, our 200,000th customer joined Coop Punk. We continue to rapidly expand our customer base, averaging nearly 2,000 additional customers each month and are actively promoting our services. The number of customers using the service has increased by nearly 1,000.
Co-op Punk’s loan portfolio growth in the third quarter was driven by residential customer mortgages. Growth in the corporate loan portfolio was moderate. During the year, the Estonian bank’s loan portfolio for personal and corporate customers increased by nearly 6% (€1.6 billion), and Coop Punk’s loan portfolio grew by nearly 11% (€167 million). Therefore, Coop Pank’s loan volumes are growing twice as fast as the market.
The quality of the loan portfolio remains very good and the prolonged economic downturn has not affected customer payment behavior.
The interest rate environment is on a downward trend. Since last fall, six-month Euribor has fallen by almost 1 percentage point (4.1% to 3.1%). Deposit interest reacted similarly, with interest paid on annual deposits decreasing by 1 percentage point (from 4.3% to 3.3%). As a result of the trends described above, our net interest margin for the year decreased from 4.4% to 3.9%. In an environment of falling interest rates, banks’ profits can only increase at the expense of increased trading volumes, which is a co-op punk situation.
In summary, according to the Bank’s performance indicators, after the unusual year of 2023 with high interest rate levels, we have returned to reality, i.e. to 2022 levels. According to Cooppunk’s long-term goals, our cost-income ratio is below 50. %, and our return on equity is over 15%. ”
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The income statement is as follows. euro’s
Q3 2024
Q2 2024
Q3 2023
September 2024
September 2023
net interest income
20 021
19 319
21 257
58 420
60 672
Net fees and commission income
1 040
1,000
1 147
3 054
3 359
Other net income
167
146
334
438
758
Total net profit
21 228
20 464
22 738
61 912
64 789
Salary expenses
-6 138
-5 858
-5 297
-17 405
-14 739
marketing costs
-593
-775
-630
-1 902
-1 676
Rent and office expenses, reduced tangible assets
-729
-775
-673
-2 299
-2 098
IT expenses and depreciation 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 income before impairment
10 967
10 374
13 716
32 135
39 607
Impairment charges for financial assets
-1 022
-1 224
-1 296
-2 822
-5 155
Net profit before tax
9 945
9 150
12 420
29 313
34 452
income tax expense
-1 296
-1 152
-1 344
-3 528
-3 634
net income
8 649
7 998
11 076
25 785
30 818
Earnings per share, euro
0,08
0,08
0,11
0,25
0,30
Diluted earnings per share, euro
0,08
0,08
0,11
0,25
0,30
Statement of Financial Position, Chapter 1. euro’s
September 30, 2024
June 30, 2024
2023.12.31
2023.09.30
cash and cash equivalents
404 472
335 710
428 354
404 911
debt securities
37 445
36 980
36 421
31 765
financing 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
Amounts of customer deposits and loans received
1 838 626
1 739 709
1 721 765
1 707 214
Other debts
28 026
28 121
28 435
27 451
subordinated debt
63 410
63 148
50 187
50 148
Total debt
1 930 062
1 830 978
1 800 387
1 784 813
capital
204 963
195 320
185 825
176 375
Total debt and equity
2 135 025
2 026 298
1 986 212
1 961 188
Coop Pank’s reporting is available at https://www.cooppank.ee/en/reporting.
Coop Pank will host a webinar on October 18, 2024 at 9:00 a.m. to announce its third quarter 2024 financial results. To participate, pre-register at https://bit.ly/18102024-registrerumine-veebiseminarile.
The webinar will be recorded and made available on the company’s website www.cooppank.ee and YouTube channel.
Estonian-based Cooppunk is one of the five universal banks operating in Estonia. The bank has 202,000 banking customers every day. Cooppunk aims to leverage the synergies created by the interaction of retail and banking to bring everyday banking services closer to people’s homes. The bank’s strategic shareholder is Coop Eesti, a national retail chain consisting of 320 stores.
Additional Information:
paavo trou
CFO
Phone: +372 516 0231
Email: paavo.truu@cooppank.ee
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