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%. ”
The income statement is as follows. Q3 2024 Q3 2024 20239 million 20249 million 2023 Net interest income 20 02119 31921 25758 42060 672 Net fee income 1 0401 0001 1473 0543 359 Net other income 167146334438 758 Total net income 2 1 22820 46422 73861 91264 789 people Expenses -6 138-5 858-5 297-17 405-14 739 Marketing expenses – 593-775-630-1 902-1 676 Rental and office expenses, breakdown of tangible assets excluding tax – 729-775-673-2 299-2 098IT Expenses and Depreciation Breakdown 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 impairment10 96710 37413 71632 13539 607 Impairment of financial assets -1 022-1 224-1 296-2 822-5 155 Net income before tax9 9459 15012 42029 31334 452 Income tax expense -2 96-1 152-1 344 -3 528-3 634 Net income8 6497 99811 07625 78530 818 Earnings per share, euro 0,080,080,110,250,30 Diluted earnings per share, euro 0,080,080,110,250,30 Euro equivalent 30.09.202430.06.202431.12.202330.09.2023 Cash and cash equivalents 404 472335 710428 354404 911 Debt securities 37 44536 98036 42131 765 Loans to customers1 661 1521 0001 490 8731 493 985Other assets31 95632 60830 56430 527 Total assets2 135 0252 026 2981 986 2121 961 188Customer deposits and loan receipts1 838 6261 739 7091 721 7651 707 214Other liabilities28 02628 12128 43527 451Subordinated debt63 41063 1 4850 18750 148Total Liabilities1 930 0621 830 9781 800 784 813 Equity204 963195 320185 825176 375 Total debt and equity2 135 0252 026 2981 986 2121 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
