In Q1 2021, net loan portfolio of Coop Pank grew by 25 million euros (+4%), reaching 696 million euros. Home loans portfolio showed the fastest growth, increasing the volume by 17 million euros (+6%). Business loans portfolio increased by 8 million euros (+3%), leasing portfolio by 1 million euros (+1%) and consumer finance portfolio decreased by 0.4 million euros (-1%). Compared to Q1 2020, total loan portfolio of Coop Pank has grown by 192 million euros, i.e. 38%.
In Q1 2021, volume of deposits in Coop Pank increased by 91 million euros (+12%), reaching total of 849 million euros. Volume of demand deposits grew by 31 million euros (+10%), of which 16 million euros came from private individuals and 15 million euros came from business clients. Term deposits grew by 60 million euros (+13%): 29 million euros came from domestic companies and 5 million euros came from private clients and 26 million euros came via the international deposit-taking platform Raisin. Compared to Q1 2020, volume of Coop Pank's deposits has increased by 301 million euros (+55%). In an annual comparison, share of demand deposits has increased from 30% to 39% and the bank’s financing cost decreased from 1% to 0.8%.
In Q1 2021, overdue loan portfolio of Coop Pank was at the level of 3%, which is at the same level as in Q4 2020. In an annual comparison, overdue loan portfolio decreased from the level of 7% to 3%, which is the lowest level in last four years. Impairment costs in Q1 2021 were 0.8 million euros, which is at comparable level as in Q4 2020, but 36% lower than a year ago.
Coop Pank has 93,200 clients by the end of Q1 2021, the number of clients has increased by 6,500 over the quarter (7%). Number of private clients with current account in the bank increased by 5,900 and number of business clients by 600 over the quarter. Over the year, client base of Coop Pank increased 34%, i.e. by 24,000 clients.
Net income of Coop Pank in Q1 2021 was EUR 8.9 million, having grown 4% QoQ and 25% YoY. Operating expenses reached 5.1 million euros in the first quarter, having decreased by 3% QoQ. In annual comparison, the bank's expenses have increased by 15%.
In Q1 2021, net profit of the bank was 2.8 million euros, which is 17% more than in Q4 2020 and 94% more than a year ago. In Q1 2021, cost / income ratio of the bank was 58% and return on equity was 11.5%.
As of 31 March 2021, Coop Pank has 15,875 shareholders, 3008 shareholders have been added over the quarter.
Margus Rink, Chairman of the Management Board of Coop Pank, comments the results:
“Of the first quarter results, the rapid growth of domestic deposits deserves the most attention. In the first quarter of the year, volume of Coop Pank's deposits increased by 91 million euros, of which domestic deposits accounted for more than two thirds, more precisely 65 million euros. Of this, 44 million came from business customers and 21 million from private customers. In addition, we took advantage of the favorable interest rate environment on the international deposit-raising platform Raisin and raised an additional EUR 25 million, reckon with that in the second quarter higher-term term deposits will end on the same platform and we are not planning to extend them.
Growth of the bank's business volumes is also accompanied by better performance indicators for investors. Coop Pank's net profit was almost twice as high as a year ago. Cost / income ratio decreased to 58%, cost of financing decreased to 0.8% and return on equity increased to 11.5%.
To support further growth strategy, the bank issued subordinated bonds in March. This was the first series in 20 million euros subordinated bonds programme of Coop Pank. Initial issue volume of 8 million euros was oversubscribed 6.2 times, which confirms investors' trust and confidence in the bank's growth plans. We decided to increase the volume to 10 million euros and to give preference to our customers and shareholders in the distribution of the bonds, to whom we distributed two thirds of the total volume of the bonds.”
| Income statement, in thousands of euros | Q1 2021 | Q4 2020 | Q1 2020 |
| Net interest income | 8 043 | 7 808 | 6 358 |
| Net fee and commission income | 648 | 540 | 521 |
| Net other income | 202 | 171 | 238 |
| Total net income | 8 893 | 8 519 | 7 117 |
| Payroll expenses | -2 879 | -2 976 | -2 662 |
| Marketing expenses | -306 | -350 | -226 |
| Rental and office expenses, depreciation of tangible assets | -579 | -539 | -563 |
| IT expenses and depreciation of intangible assets | -740 | -767 | -490 |
| Other operating expenses | -619 | -640 | -501 |
| Total operating expenses | -5 123 | -5 272 | -4 442 |
| Net profit before impairment losses | 3 770 | 3 247 | 2 675 |
| Impairment costs on financial assets | -771 | -715 | -1 214 |
| Net profit before income tax | 2 999 | 2 532 | 1 461 |
| Income tax expenses | -164 | -108 | 0 |
| Net profit for the financial year | 2 835 | 2 424 | 1 461 |
| Basic earnings per share (in euros) | 0.03 | 0.03 | 0.02 |
| Diluted earnings per share (in euros) | 0.03 | 0.03 | 0.02 |
| Statement of financial position, in thousands of euros | 31.03.2021 | 31.12.2020 | 31.03.2020 |
| Cash and cash equivalents | 249 416 | 170 750 | 119 480 |
| Debt securities | 3 074 | 3 011 | 3 737 |
| Loans to customers | 695 721 | 670 593 | 504 119 |
| Other assets | 26 700 | 25 555 | 25 341 |
| Total assets | 974 911 | 869 909 | 652 677 |
| Customer deposits and loans received | 848 755 | 757 835 | 547 398 |
| Other liabilities | 8 626 | 7 443 | 7 696 |
| Subordinated debt | 17 111 | 7 064 | 7 111 |
| Total liabilities | 874 492 | 772 342 | 562 205 |
| Equity | 100 419 | 97 567 | 90 472 |
| Total liabilities and equity | 974 911 | 869 909 | 652 677 |
The reports of Coop Pank are available at: https://www.cooppank.ee/en/reporting
Coop Pank will organise a webinar on 21 April 2021 at 09:00 AM, to present the financial results of Q1 2021. For participation, please register in advance at:
https://attendee.gotowebinar.com/register/8859051472217070093
The webinar will be recorded and published on the company's website www.cooppank.ee as well as on the Nasdaq Baltic youtube.com channel.
Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The bank has 93,200 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:
Kerli Lõhmus
CFO
Phone: +372 669 0902
E-mail: kerli.lohmus@cooppank.ee
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