Coop Pank As · OMXTSE:CPA1T
Coop Pank As — Q4 2022 Earnings Presentation
24 slides from Coop Pank As's earnings presentation, 2023
Slide 1: Coop Pank Group 2022 Q4 and yearly unaudited results
Coop Pank Group 2022 Q4 and yearly unaudited results
Slide 2: Key notes from Q4 and year 2022
Key notes from Q4 • Strong growth in business volumes (no of customers, deposits, loans) • Secondary public offering of shares • Additional provisions to loan portfolio (weakening of economic environment) Key notes from year 2022 • Number of clients increased • Record high increase in deposits • Str
Slide 3: Business volumes in quarterly comparison
Business volumes in quarterly comparison Loans Deposits m€ +347 +36% m€ +409 +37% +92 +8% +154 +11% 1 208 1 301 1 040 1 131 1 508 953 1 249 1 354 1 099 1 149 Q4 2021 Q1 Q2 Q3 Q4 2022 Q4 2021 Q1 Q2 Q3 Q4 2022 Customers Net profit '000 +15.8 +31% '000 € +3 220 +98% +4.4 +7% +768 +13% 131 139 147 5 747
Slide 4: Results of Q4 2022 – compared to Q3 2022
Results of Q4 2022 – compared to Q3 2022 Key indicators in year on year comparison • Revenues +2.7m€ (+19%) • Net interest increased +3.0m€ (+24%) as loan Q4 Q3 Quarterly 2022 2022 change portfolio grew by 92m€ and euribor increased Net operating income ('000 €) 16 534 13 847 +2 687 +19% • Other net
Slide 5: Business volumes in yearly comparison
Business volumes in yearly comparison Loans Deposits m€ CAGR +41% m€ CAGR +41% +347 +36% +409 +37% 1 301 1 508 953 1 099 671 758 329 460 507 385 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Customers Net profit '000 CAGR +37% '000 € CAGR +45% +15.8 +31% +6 887 +51% 20 350 147 87 115 13 463 45 6
Slide 6: Results of 2022 – compared to 2021
Results of 2022 – compared to 2021 Key indicators in quarterly comparison • Revenues +15.4m€ (+39%) Year on Year • Net interest +15.2m€, loan portfolio +347m€, 2022 2021 change increasing euribor Net operating income ('000 €) 54 631 39 238 +15 393 +39% • Net service fees +0.7 m€ (+23%) Interest 50 7
Slide 7: Loan portfolio continues to grow
Loan portfolio continues to grow Net loan portfolio • Annual growth of loan portfolio +347m€ (+36%) 6.6% • Business loans +154m€ (+36%) 6.3% 6.0% • Private mortgage loans +143m€ (+39%) • Leasing +32m€ (+32%) Gross interest of portfolio 5.2% • 5.1% Consumer loans +19m€ (+28%) +347 +36% m€, % 1 301 86
Slide 8: Loan portfolio interest by business lines
Loan portfolio interest by business lines Business loans Private mortgage loans m€, % m€, % 5.6% 5.7% 5.5% 5.0% 5.0% 4.1% 3.7% 3.6% 3.4% 3.4% 587 508 430 264 366 160 262 140 181 105 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Gross loan portfolio Gross interest % Gross loan portfolio Gross int
Slide 9: Quality of loan portfolio
Quality of loan portfolio Loans past due and loss allowances in balance sheet • Past due portfolio remains at a low 1.5% m€, % • Credit risk cost ratio 0.5% in 2022 5.3% 5.4% 3.3% 2.2% 1.5% 25.1 22.4 21.1 20.4 17.7 6.5 7.5 2.1 2.3 Credit risk cost ratio 16.3 18.6 19.0 18.1 14.9 % 0.8% - 3.8 - 5.3 -
Slide 10: Loan portfolio quality by business lines
Loan portfolio quality by business lines Business loans Private mortgage loans m€, % m€, % 4% 4% 4% 2% 2% 0.4% 3% 2% 1% 1% 6.4 7.4 5.3 4.0 4.6 4.8 4.6 5.0 2.6 5.0 7.2 0.6 0.5 0.6 2.6 0.2 3.7 4.0 2.1 - 1.2 - 1.7 - 3.2 4.7 4.3 4.0 0.4 4.7 - 4.6 - 7.4 2.3 - 0.5 - 0.5 - 0.2 - 0.4 - 0.5 2018 2019 2020 20
Slide 11: Interest costs of deposits have begun to rise
Interest costs of deposits have begun to rise Deposits • Total cost of financing has remained at a 0.7% level compared to 2021, but on a quarterly basis, cost rate has increased from a 0.7% (Q3) to 0.9% (Q4) Total cost of financing • Deposits grew by 409m€ (37%) 1.0% • +245m€ from business clients 0
Slide 12: Client base and market share
Client base and market share Total no of clients • Total no of clients increased by 32.4 thousand (+28%) in 2022 (+27.9 thousand in 2021) '000 • 15.8 thousand (+31%) new active clients in 2022 +32 +28% (+13.1 thousand in 2021) 147 115 45 64 87 • Bank’s market share changed in 2022: • Market share of
Slide 13: Capital base supports growth plans
Capital base supports growth plans Annual capitalization Liquidity coverage ratio (LCR) m€, % % 24.3% 1375% 19.5% 18.1% 17.8% 16.6% 896 682% 648 457 345 275% 247 202% 176% 160 84 89 108 100% 45 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 Total eligible capital RWA Capital adequacy ratio LCR Re
Slide 14: Performance indicators
Performance indicators Cost / income ratio (CIR) and ROE • Decreasing CIR (long term goal: <50%) Cost / income ratio % • Revenues +15.4m€ (+39%) • Costs +4.7m€ (+21%) 69% 69% 60% • Increased ROE (long term goal: >15%) 57% • Quality of loan portfolio remains high 50% • Rising euribor contributes to r
Slide 15: 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 96% Swedbank LHV 29% 28% 57% 95% Swedbank 29% 22% 51% 91% SEB 91% Coop Pank 12% 30% 42% 76% LHV SEB 19% 22% 41% 72% Luminor 9% 11% 61% Coop Pank 55% Other 3% First preference 59% Dece
Slide 16: Shareholders
Shareholders No of Coop Pank shareholders TOP shareholders Shareholder distribution of Coop Pank as at 31.12.2022 No of shareholders (thousand) Coop +5.9 +19% Investeeringud 22% 36.0 Others 42% 27.8 Cooperatives 19% 12.9 11.3 Tallinna linnakantselei 2019 2020 2021 2022 3% CM Capital Andres Sonn 5% 8
Slide 17: Share price
Share price Coop Pank share price and trading volume by dates • Successful secondary public offering of shares completed in December. Emission was oversubscribed by 4.2 times Share price €, 4.20 and capital was raised in the amount of 20.3m€ trading volume thousand shares 3.52 • Share price at the e
Slide 18: Summary: 2022 results
Summary: 2022 results • Business volumes continue to grow ca +40% YoY • Net profit 20.4m€ (+51% YoY) • CIR: 50% (2021 57%) • ROE: 16.8% (2021 12.9%) 20.4m€ profit ROE 16.8%
Slide 19: Financial results 5 years
Financial results 5 years Financial results and key indicators • On average +40% yearly increase in business 2018 2019 2020 2021 2022 volumes • Increased profitability due to economies of scale Net operating income ('000 €) 19 768 23 719 31 089 39 238 54 631 Interest 16 779 20 689 28 371 35 538 50 7
Slide 20: Target: increasing number of active clients
Target: increasing number of active clients No of clients of Coop Pank and target No of active customers of Coop Pank, thousand >150 22% growth (on average p.a) Number of active clients >150 000 67 51 38 28 19 2018 2019 2020 2021 2022 ... 2026
Slide 21: Target: growth of loan portfolio
Target: growth of loan portfolio Coop Pank loan portfolio and target Net loan portfolio of Coop Pank, m€ 11% growth (on average p.a) >2 000 Loan portfolio >2 bn € 1 301 953 671 460 329 2018 2019 2020 2021 2022 ... 2026
Slide 22: Target: decreasing cost/income ratio
Target: decreasing cost/income ratio Cost/income ratio Cost / income ratio (CIR) 69% 69% 60% Cost/income ratio 57% <50% 50% <50% 2018 2019 2020 2021 2022 ... 2026
Slide 23: Target: increasing return on equity
Target: increasing return on equity Return on equity Return on equity (ROE) 16.8% >15% Return on equity 12.9% >15% 10.1% 9.8% 7.8% 2018 2019 2020 2021 2022 ... 2026
Slide 24: 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