Coop Pank unaudited financial results for Q1 2024 - Seite 2

As of 31 March 2024, Coop Pank has 37,100 shareholders.

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

“We are currently operating in an environment where two years of recession have been replaced by stagnation, and hopefully, in the annual perspective, we will see the first signs of the economy returning to the growth phase. In this context, the quarterly growth of Coop Pank's loan portfolio by 40 million euros must be considered a decent result. We are also pleased with the continued growth in the number of customers.

At the end of last year, the expectation of a gradual decrease in interest rates from this year prevailed in the markets, now the starting point of the interest rate decrease has shifted to the summer months and this year markets are predicting a somewhat smaller decline. Banks' interest income has reached its peak in such an environment, with a downward trend looking forward. Interest costs have also reached their peak and the interest rates offered for deposits are much lower today than a few months ago. From here on, banks' net interest income can grow only at the expense of increasing business volumes.

The quality of the loan portfolio has well withstood the few years recession. In the last quarter, our cost of credit was very low, as problems with a couple of business customers were resolved and we released the discounts of these loans. At the same time, the number of short-term debtors in the home loan portfolio has somewhat increased, but most of the time they find a solution before the next loan payment is due.

In summary, the growth of business volumes, the persistence of high interest rates and low credit costs ensured us a very decent profit and performance indicators in the first quarter of this year. We are strongly capitalized and have enough deposits to finance the loan requests by companies and individuals, which would turn Estonia's economy to growth track. Economic growth would directly cover the deficit in the state purse and reduce the pressure on tax increases and spending cuts.”

Income statement, in th. of euros	Q1 2024	Q4 2023	Q1 2023
Net interest income	19 082	20 594	18 372
Net fee and commission income	1 014	1 489	1 028
Net other income	125	-1 666	261
Total net income	20 221	20 417	19 661
Payroll expenses	-5 409	-5 495	-4 542
Marketing expenses	-533	-912	-412
Rental and office expenses, depr. of tangible assets	-795	-678	-700
IT expenses and depr. of intangible assets	-1 405	-1 363	-1 155
Other operating expenses	-1 286	-1 498	-788
Total operating expenses	-9 427	-9 948	-7 596
Net profit before impairment losses	10 794	10 469	12 065
Impairment costs on financial assets	-576	-1 148	-1 627
Net profit before income tax	10 218	9 322	10 438
Income tax expenses	-1 080	-935	-1 063
Net profit for the period	9 138	8 386	9 375
Earnings per share, eur	0,09	0,08	0,09
Diluted earnings per share, eur	0,09	0,08	0,09