In Q2 2020, the net loan portfolio of Coop Pank grew by EUR 55 million (+11%), reaching EUR 559 million. The business loans portfolio showed the fastest growth by increasing the volume by EUR 28 million (+16%), home loans portfolio increased by EUR 20 million (+10%), leasing portfolio EUR 5 million (+7%) and the consumer finance portfolio EUR 2 million (+3%). Compared to Q2 2019, the total loan portfolio of Coop Pank has grown by EUR 179 million, i.e. 47%.

In Q2 2020, the volume of deposits in Coop Pank increased by EUR 68 million (+12%), reaching the total of EUR 615 million. The volume of bank’s demand deposits grew by EUR 33 million (+20%), of which EUR 23 million came from bank’s business clients and EUR 10 million from private individuals. Term deposits grew by EUR 35 million, major part of it – EUR 31 million – came via the international deposit-taking platform Raisin. In Q2, the volume of term deposits from domestic companies was EUR 3 million and EUR 1 million was taken from private clients. Coop Pank deposit portfolio has increased by EUR 206 million or 50% YoY. By the end of Q2, the share of client demand deposits has increased from 26% to 32% YoY. Bank’s financing cost did not change significantly over the quarter and remained at the level on 1%.

In Q2, the overdue loan portfolio of Coop Pank remained at the level of 7%. Resulting from the impact of restrictions imposed due to the spread of coronavirus on the economic environment, additional impairment of EUR 0.7 million was made to the loan portfolio. The loan impairment losses in Q2 2020 totalled EUR 1.7 million.

The number of clients reached 74,500 by the end of Q2 2020, having increased by 5,100, i.e. 7% over the quarter. The number of private clients with current account in the bank increased by 4,600 and the number of business clients by 500 over the quarter. The client base of Coop Pank increased 44%, i.e. by 22,700 clients, year-on-year.

Coop Pank’s net income for Q2 2020 was EUR 7.5 million, having grown 33% YoY and 5% QoQ. Operating expense reached EUR 4.4 million in Q2, having increased by 11% YoY and decreased by 2% QoQ. Bank’s net income in Q2 was EUR 3.1 million, having grown 83% YoY and 16% QoQ. In Q2 2020, the bank earned a net profit of EUR 1.4 million, showing the annual growth of 9% and a 7% decrease QoQ.

The bank’s cost / income ratio decreased from the 62% in Q1 2020 to 58% in the second quarter of this year. Coop Pank’s ROE in Q2 2020 was 6%.

As of 30 June, 2020, Coop Pank has 12,401 shareholders, 443 shareholders having joined over the quarter.

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

„This year’s results have certainly been affected by the spread of the coronavirus and the restrictions imposed in the economic environment to prevent it. Despite of the difficult environment, we managed to make decent growth in business volumes. Over the first 6 months of 2020, the loan portfolio grew by almost EUR 100 million, which is about twice as much as in the same period a year ago.

Business volumes, growing at an increasing rate, have boosted the bank’s net interest income, the growth rate of which clearly exceeds the growth rate of expenses in the last two quarters. The decision taken at the end of Q1 to cut the bank’s operating expenses and implement additional austerity measures ensured a 2% decrease in expenses in Q2 compared to Q1. The fast-pace revenue growth and lower expenses ensured a 78% increase in the bank’s 6 M operating profit YoY.

Undoubtedly, the impact of the change in the economic environment is not yet fully reflected in the bank’s current results. At the end of Q1 and the beginning of Q2, we saw an increase in the number of customers’ requests for payment leave and a slight decrease in the interest of private customers in financial products. From the second half of April, however, business volumes recovered. Although the quality of the loan portfolio has remained stable, we have formed additional provisions over the first 6 months of the year in the amount of EUR 1.1 million for balancing the negative impact of the economic environment. We have maintained a conservative approach in making impairments for the loan portfolio and will continue to do so.

The addition of new private and corporate customers has led to a rapid growth in demand deposits. We can see that becoming a customer is followed by transferring one’s income and receipts to a new bank account, and therefore the share of customers’ demand deposits reached one third of the bank’s total deposits by the end of the second quarter, which helps reduce financing costs in the long run.

In the spring of this year, for the 11th time Kantar Emor conducted the survey of Estonian residents’ favourite brands, according to which the bank’s umbrella brand Coop reached number 3 in the standings, being one of the fastest top ten ascenders compared to the previous year. According to the survey company, the increase in the attractiveness of the Coop brand has been ensured by the clear image of the keeper and promoter of rural life. According to a survey, conducted by the agency Initiative in May this year, the spontaneous awareness of Coop Pank has also increased, reaching 62%. The increase of the bank’s brand awareness and attractiveness creates rich ground for continuous rapid growth, it also confirms that the clients value the strength of Coop’s strategy based on the synergy of retail and banking.

One of the most important events of Coop Pank in Q2 2020 is the launch of a new service at the end of April, developed for the bank’s private customers: the bank’s mobile app allows to make and receive proxy payments, i.e. one can make a bank transfer by knowing only the phone number and name of another person. In May, Coop Pank started offering factoring services to companies, and at the beginning of June, Coop Leasing launched a car e-shop, aiming to make buying a car more convenient. Online car shop offers its customers a “one-stop shop” solution, allowing to select a car and the most appropriate financing and insurance solution at a single place. At the annual general meeting of shareholders held on 28 May, the shareholders of Coop Pank elected a new six-member supervisory board: Alo Ivask, chairman of the management board of Coop Eesti Keskühistu, was elected the chairman, Ardo Hansson, the former president of the Bank of Estonia, the vice chairman at the first supervisory board meeting held on 17 June, Jaan Marjundi, Raul Parusk, Roman Provotorov and Silver Kuus are members of the supervisory board. In June, Coop Pank started offering the possibility to use the data of the Estonian Tax and Customs Board for the transmission of job and income data when submitting loan applications, which makes applying for a loan more convenient and the client receives a response faster.

Coop Pank can be characterised by the courage to lead banking in an innovative way, creating banking services that fit into the daily activities of our clients at the point where they need them. As a local bank, we make quick decisions and are flexible, thus contributing to the improvement of life in Estonia. We continue to implement our distinctive strategy, based on the integration between banking and retailing.”

Income statement, EUR thousand Q2 2020 Q1 2020 6M 2020 Q2 2019 6M 2019
Net interest income 6 852 6 358 13 210 4 939 9 439
Net fee and commission income 477 521 998 606 1 157
Other net income 135 238 373 77 238
Total net income 7 464 7 117 14 581 5 622 10 834
Payroll expense -2 603 -2 662 -5 265 -2 355 -4 603
Marketing expense -201 -226 -427 -277  
Rental and office expense, depreciation of tangible assets -552 -563 -1 115 -460  
IT expenses and depreciation of intangible assets -565 -490 -1 055 -384  
Other operating expense -434 -501 -935 -445  
Total operating expense -4 355 -4 442 -8 797 -3 921  
Net profit before impairment losses on loans and advances 3 109 2 675 5 784 1 701 10 834
Impairment losses on loans and advances -1 721 -1 214 -2 935 -448  
Profit/loss before income tax 1 388 1 461 2 849 1 253 10 834
Income tax -26 0 -26 -2  
Net profit for the financial year 1 362 1 461 2 823 1 251 10 834
Basic and diluted earnings per share (euros) 0.01 0.02 0.03 0.02 0.04
Balance sheet, EUR thousand 30.06.2020 31.03.2020 31.12.2019 30.06.2019  
Cash and cash equivalents 133 905 119 480 122 295 72 709  
Debt securities 3 682 3 737 4 061 5 647  
Loans to customers 559 295 504 119 460 460 380 642  
Other assets 24 948 25 341 24 486 22 538  
Total assets 721 830 652 677 611 302 481 536  
Customer deposits and loans received 615 153 547 398 506 531 409 036  
Other liabilities 7 381 7 696 8 356 7 064  
Subordinated debt 7 064 7 111 7 064 9 629  
Total liabilities 629 598 562 205 521 951 425 729  
Shareholder’s equity 92 232 90 472 89 351 55 807  
Total liabilities and equity 721 830 652 677 611 302 481 536  

The reports of Coop Pank are available at:

Coop Pank will organise a webinar on 21 July, 2020 at 09:00 AM, to present the financial results of Q2 2020. For participation, please register in advance at:

The webinar will be recorded and published on the company’s website as well as on the Nasdaq Baltic channel.

Coop Pank, based on Estonian capital, is one of the five universal banks operating in Estonia. The bank has 74,500 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
Phone: +372 669 0902

  • Interim report_6m 2020_EN
  • Coop Pank 2020 Q2 results_EN

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