Coop Pank As · OMXTSE:CPA1T
Coop Pank As — Q4 2024 Earnings Presentation
26 slides from Coop Pank As's earnings presentation, Feb 13, 2025
Slide 1: Coop Pank Group 2024 Q4 and yearly unaudited results
Coop Pank Group 2024 Q4 and yearly unaudited results 13.02.2025
Slide 2: Key notes from year 2024
Key notes from year 2024 • Economic environment shows positive signs • Falling interest rates. The decline in interest income exceeds the decline in interest expenses • Business volumes grow 2.5 times faster than the market as a whole: number of clients, loan portfolio • Quality of loan portfolio re
Slide 3: Business volumes in quarterly comparison
Business volumes in quarterly comparison Loans Deposits m€ +283 +19% m€ +164 +10% +113 +6,8% +47 +2,6% 1 839 1 886 1 774 1 722 1 693 1 740 1 621 1 661 1 491 1 531 Q4 2023 Q1 Q2 Q3 Q4 2024 Q4 2023 Q1 Q2 Q3 Q4 2024 Active customers Net profit '000 +17 +21% m€ -2,0 -23,8% +3,8 +4,0% -2,3 -26% 8,4 9,1 8
Slide 4: Interest income and financing cost
Interest income and financing cost Interest margins Interest income, expenses and net interest income % m€ 7,1% 7,0% 7,0% 6,8% 6,9% 35,0 34,5 34,7 35,3 34,1 6,4% 6,4% 33,3 5,6% 28,5 4,8% 23,9 4,6% 4,1% 4,1% 4,2% 4,1% 4,0% 3,9% 3,9% 19,3 3,6% 3,6% 3,6% 3,3% 21,0 21,3 20,6 15,0 20,0 19,1 18,4 19,1 19,
Slide 5: Results of Q4 2024 – compared to Q3 2024
Results of Q4 2024 – compared to Q3 2024 Key indicators in quarterly comparison • Record growth in business volumes: loan portfolio +113 m€ (+7%) • Interest income decreased due to the decrease in Euribor and Quarterly Q4 2024 Q3 2024 change margins. The increase in the loan portfolio did not compen
Slide 6: Business volumes in yearly comparison
Business volumes in yearly comparison Loans Deposits m€ CAGR: +28% m€ CAGR: +26% +283 +19% +164 +10% 1 774 1 722 1 886 1 491 1 508 1 301 1 099 953 758 671 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Active customers Net profit '000 CAGR: +27% 'm€ CAGR: +45% +17,4 +21% -7,0 -18% 182 208 39,2 11
Slide 7: Results of 2024 – compared to 2023
Results of 2024 – compared to 2023 Key indicators in year on year comparison • Net income -3.3 m€ (-4%) 2024 2023 Year on Year • Interest income +18.0 m€ incl. business volume growth change Net operating income ('000 €) 81 883 85 205 -3 322 -4% impact +14 m€; interest rate impact +2.4 m€; other Inte
Slide 8: Loan portfolio continues to grow
Loan portfolio continues to grow Net loan portfolio • Annual growth of loan portfolio +283 m€ (+19%) m€, % 7,5% 7,5% • Business loans +129 m€ (+20%) 6,0% • Private mortgage loans +121 m€ (+20%) 5,2% 5,1% • Leasing +24 m€ (+16%) Gross interest of portfolio • Consumer loans +9 m€ (+9%) CAGR: +28% +283
Slide 9: Loan portfolio interest by business lines
Loan portfolio interest by business lines Business loans Private mortgage loans m€, % m€, % 7,5% 7,8% 5,5% 6,0% 6,3% 5,0% 5,0% 3,6% 3,4% 3,4% 650 780 719 587 508 598 430 366 262 264 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Gross loan portfolio Gross interest % Gross loan portfolio Gross int
Slide 10: Quality of loan portfolio
Quality of loan portfolio Loans past due and loss allowances in balance sheet • Past due portfolio remains at a low 2.1% m€, % • Credit risk cost ratio 0.3% in 2024 3,3% 2,2% 1,5% 2,0% 2,1% 37,6 30,6 6,3 4,1 22,4 21,1 20,4 7,5 2,1 2,3 31,2 26,5 19,0 18,1 Credit risk cost ratio 14,9 % - 8,7 - 8,8 - 1
Slide 11: Loan portfolio quality by business lines
Loan portfolio quality by business lines Business loans Private mortgage loans m€, % m€, % 1,7% 1,0% 2,0% 2,2% 1,7% 1,7% 0,7% 0,4% 0,8% 1,1% 15,9 7,4 8,2 11,8 4,6 5,3 0,1 2,6 4,0 4,0 5,5 4,6 5,0 14,4 2,1 2,6 11,1 - 3,2 - 4,6 - 7,4 - 10,0 - 11,2 4,0 4,7 - 0,2 2,3 - 1,1 - 1,5 2020 2021 2022 2023 2024
Slide 12: Interest costs of deposits increased
Interest costs of deposits increased Deposits • Deposits grew by 164 m€ (+10%) m€ Total cost of financing 3,3% • +44 m€ from private clients (+46 m€ demand deposits, -2 m€ term deposits) 2,4% • +9 m€ from business clients (+29 m€ demand deposits, -20 m€ term deposits) • +111 m€ from Raisin platform
Slide 13: Client base and market share
Client base and market share Total no of clients with a bank account • Total no of clients increased by 26 000 (+14%) '000 CAGR: +24% (+35 000 in 2023) +26 +14% • 17 400 new active clients in 2024 (+21%) 208 (+15 200 in 2023) 182 147 115 87 • Bank’s market share changed in 2024* 2020 2021 2022 2023
Slide 14: Capital base supports growth plans
Capital base supports growth plans Quarterly capitalization Capital adequacy m€ % 19,6% 20,4% 19,4% 19,0% 19,4% +39 +19% 16,1% 16,3% 16,3% 16,3% 16,3% +20 +9,1% 239 Total (%) Regulatory minimum + P2G (%) 220 219 219 200 35 % 35 35 35 22 28 17,5% 17,2% 16,3% 16,6% 16,0% 28 28 28 28 13,5% 13,6% 13,6%
Slide 15: Liquidity
Liquidity Liquid assets Liquidity coverage ratio (LCR) m€; % % 23,4% 21,1% 20,7% 297% 293% 18,4% 17,4% 465 442 417 381 209% 205% 207% 373 134% 131% 127% 426 402 125% 125% 378 334 339 100% 100% 100% 100% 100% Q4 2023 Q1 Q2 Q3 Q4 2024 Total liquid assets Bonds Q4 2023 Q1 Q2 Q3 Q4 2024 Cash, balances w
Slide 16: Performance indicators
Performance indicators Cost / income ratio (CIR) and ROE • CIR 50% (long term goal <50%) Cost / Income ratio % • Net income 81.9 m€, -3.3 m€ (-4%) • Operating expenses 40.6 m€, +5.4 m€ (+16%) 60% 57% 50% 50% • ROE 16.2% (long term goal >15%) 41% • ROE is most affected by the interest rate environmen
Slide 17: Brand awareness and preference as a financial partner
Brand awareness and preference as a financial partner Brand awareness of Coop Pank Preference as a financial partner Swedbank 48% 46% 94% LHV 27% 30% 57% Swedbank 33% 20% 53% SEB 27% 61% 88% Coop Pank 11% 34% 45% LHV Pank 16% 66% 82% SEB 17% 23% 40% Coop Pank 4% 60% 64% Luminor 9% 11% Luminor 50% 52
Slide 18: Shareholders
Shareholders No of Coop Pank shareholders TOP shareholders '000 Shareholder distribution of Coop Pank as at 31.12.2024 CAGR: +29% Coop Investeeringud -1,2 -3% 22% 37,1 Others 36,0 35,9 43% 27,8 Cooperatives 19% 12,9 Tallinna linnakantselei 3% CM Capital Andres Sonn 2020 2021 2022 2023 2024 5% 8%
Slide 19: Share price
Share price Coop Pank share price and trading volume by dates P/B ratio Share price €, trading volume '000 shares P/B € 2,99 2,44 2,37 1,67 1,96 1,30 1,08 0,95 1,17 942 2,46 1,07 2020 2021 2022 2023 2024 12.19 06.20 12.20 06.21 12.21 06.22 12.22 06.23 12.23 06.24 12.24 Net income per share (EPS) P/E
Slide 20: Summary: 2024 results
Summary: 2024 results • Loan portfolio growth (+19% YoY) • Growth of active customers (+21% YoY) • Net profit 32.2 mln € (-18% YoY) • CIR 50% (2023: 41%) • ROE 16.2% (2023: 23.5%) Loan portfolio +19%
Slide 21: Results of 5 years
Results of 5 years Financial results and key indicators • Strong business volume growth 2020 2021 2022 2023 2024 • 2023 profitability was exceptional due to the interest rate cycle Net oper. income ('000 €) 31 089 39 238 54 631 85 205 81 883 Interest 28 371 35 538 50 709 81 265 77 570 • In long term
Slide 22: Target: increasing number of active clients
Target: increasing number of active clients No of active clients of Coop Pank and target No of active customers of Coop Pank, thousand >150 23% growth Number of active (on average p.a) clients >150 000 99 82 67 51 38 2020 2021 2022 2023 2024 ... 2026
Slide 23: Target: growth of loan portfolio
Target: growth of loan portfolio Coop Pank loan portfolio and target Net loan portfolio of Coop Pank, m€ 6% growth (on average p.a) Loan portfolio >2 000 >2 bn € 1 774 1 491 1 301 953 671 2020 2021 2022 2023 2024 ... 2026
Slide 24: Target: decreasing cost / income ratio
Target: decreasing cost / income ratio Cost / income ratio Cost / income ratio (CIR) 60% Cost / income ratio 57% <50% 50% 50% <50% 41% 2020 2021 2022 2023 2024 ... 2026
Slide 25: Target: increasing return on equity
Target: increasing return on equity Return on equity Return on equity (ROE) 23,5% Return on equity >15% 16,8% 16,2% >15% 12,9% 7,8% 2020 2021 2022 2023 2024 ... 2026
Slide 26: Margus Rink, Chairman of Board, CEO
Margus Rink Chairman of Board, CEO margus.rink@cooppank.ee Paavo Truu Member of Board, CFO paavo.truu@cooppank.ee https://www.cooppank.ee/en/for-investors