Coop Pank As · OMXTSE:CPA1T
Coop Pank As — Q4 2020 Earnings Presentation
29 slides from Coop Pank As's earnings presentation, 2021
Slide 1: Coop Pank Group 2020 Q4 and yearly unaudited results
Coop Pank Group 2020 Q4 and yearly unaudited results
Slide 2: 2020 Q4 results
2020 Q4 results 2020 results Stock information Growth strategy
Slide 3: Business volumes in quarterly comparison
Business volumes in quarterly comparison Loans Deposits m€ +210 +46% m€ +251 +50% +71 +12% +70 +10% 599 671 688 758 504 559 547 615 460 507 Q4 2019 Q1 2020 Q2 Q3 Q4 Q4 2019 Q1 2020 Q2 Q3 Q4 Daily banking clients Operating and net profit '000 +23 +36% '000 € +841 +53% +7 +8% +412 +20% 80 87 3 262 3 2
Slide 4: Results of Q4 2020 – compared to Q3 2020
Results of Q4 2020 – compared to Q3 2020 Key indicators in quarterly comparison • Revenues +7% • Net interest increased +0.5m€ as loan portfolio grew by Q4 Q3 Quarterly 2020 2020 change 71 m€ Net operating income ('000 €) 8 519 7 988 +531 +7% Interest 7 808 7 353 +455 +6% • Operating costs +12% Serv
Slide 5: 2020 results
2020 Q4 results 2020 results Stock information Growth strategy
Slide 6: Business volumes in yearly comparison
Business volumes in yearly comparison Loans Deposits m€ CAGR +45% m€ CAGR +31% +210 +46% +251 +50% 671 758 460 507 329 316 385 238 254 153 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Daily banking clients Operating and net profit '000 CAGR +29% '000 € CAGR +44% +23 +36% +1 732 +31% 87 12 293 6
Slide 7: Results of 2020 – compared to 2019
Results of 2020 – compared to 2019 Key indicators in year on year comparison • Revenues +31% • Net interest increased +7.7m€ as loan portfolio grew by 210m€ Year on Year 2020 2019 change Net operating income ('000 €) 31 089 23 719 +7 370 +31% Interest 28 371 20 689 +7 682 +37% • Operating costs +16%
Slide 8: Increased loan portfolio in all business lines
Increased loan portfolio in all business lines Net loan portfolio • Yearly growth of loan portfolio +210m€ (+46%) • Business loans +101m€ (+64%) m€, % 6.6% 6.3% • Private mortgage loans +84m€ (+47%) 6.2% 6.0% • Leasing +19m€ (+30%) 5.3% • Consumer loans +7m€ (+11%) Gross interest of portfolio • +210
Slide 9: Loan portfolio interest by business lines
Loan portfolio interest by business lines Business loans Private mortgage loans m€, % m€, % 5.5% 5.6% 5.7% 5.5% 3.7% 4.1% 3.7% 3.6% 262 264 160 116 140 181 68 105 2017 2018 2019 2020 2017 2018 2019 2020 Gross loan portfolio Gross interest % Gross loan portfolio Gross interest % Private consumer loan
Slide 10: Quality of loan portfolio
Quality of loan portfolio Loans past due and loss allowances in balance sheet • Past due portfolio decreased to 3% level m€, % • Highest amount of corona-related payment holidays in May 2020: 52m€ of portfolio, comparable amount was 6% 5% 5% 8.5m€ in the end of year 2020 3% • In relation to coronavi
Slide 11: Loan portfolio quality by business lines
Loan portfolio quality by business lines Business loans Private mortgage loans mln €, % mln €, % 5% 4% 5% 4% 4% 2% 3% 2% 6.3 5.3 6.4 4.8 4.6 3.3 4.0 4.6 1.2 0.6 0.5 0.6 5.0 4.0 5.1 4.7 3.0 3.7 4.3 4.0 - 1.2 - 1.7 - 3.2 - 0.4 - 0.5 - 0.5 - 0.2 2017 2018 2019 2020 2017 2018 2019 2020 Private consumer
Slide 12: Amount of deposits increased, cost decreased
Amount of deposits increased, cost decreased Deposits • Deposits grew by 251m€ (+50%) m€ • Demand deposits +150m€ (+99%) • +108m€ from business clients 1.0% Total cost of financing 0.8% 0.9% • +42m€ from private clients 0.6% 0.6% • Term deposits +101m€ (+29%) • +62m€ from business clients • +17m€ fr
Slide 13: We are growing client base and market share
We are growing client base and market share Market share and number of bank clients • 23 000 new clients with bank account in 2020 (2019 +19 000) Market share % 3.4% • +21 000 private clients Market share of deposits 2.6% • +2000 business clients 3.2% 2.2% 1.9% 1.3% 2.4% • Banks market share changed
Slide 14: Capital base supports growth plans
Capital base supports growth plans Yearly capitalization Liquidity coverage ratio (LCR) m€, % % 1375% 24.3% 1164% 21.2% 19.9% 19.5% 18.1% 831% 457 682% 345 247 193 275% 138 84 89 100% 29 38 45 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Total eligible capital RWA Capital adequacy ratio LCR Reg
Slide 15: Performance indicators
Performance indicators Cost / income ratio (CIR) and ROE • Decreased CIR • +31% revenue growth vs +16% increase of costs Cost / income ratio % • Decreased ROE 74% • +31m€ addition to shareholders equity in December 69% 69% 67% 2019 via IPO 60% ROE % 11.7% 10.1% 9.8% 7.8% 5.3% 2016 2017 2018 2019 202
Slide 16: Brand awareness and preference as financial partner
Brand awareness and preference as financial partner Brand awareness of Coop Pank Preference as financial partner 96% Swedbank 97% Swedbank 38% 26% 64% 94% SEB 92% LHV 25% 29% 54% 70% LHV 71% SEB 18% 36% 54% 52% Coop Pank 54% Coop Pank 14% 48% 61% 50% Luminor 44% Luminor 17% 19% 18% Bigbank 22% Don't
Slide 17: Coop Pank brand in Estonian banking market
Coop Pank brand in Estonian banking market Corporate image of Coop Pank compared to other banks • Replies to question: „In your opinion, which banks carry these attributes?“ 64% • Coop Pank scored highest among other Estonian National company 25% banks: 46% Great commercials 20% • National company 4
Slide 18: Summary: 2020 results
Summary: 2020 results • Loan portfolio grew by 210m€ (+46% YoY) • Deposits increased by 251m€ (+50% YoY) • 23 000 new customers (+36% YoY) Bank has a total of 87 000 clients with bank account • Net profit 7.3m€ (+31% YoY). Strong capital position 23 000 new clients • Market share ca 3-3.5%. Our foot
Slide 19: Stock information
2020 Q4 results 2020 results Stock information Growth strategy
Slide 20: Shareholders
Shareholders No of Coop Pank shareholders TOP shareholders No of shareholders Shareholder distribution of Coop Pank as at 31.12.2020 +85 +381 +443 +685 +422 12 867 12 401 12 486 47 11 958 43 43 11 273 48 Coop 10 851 46 Investeeringud 45 25% Others 37% 12 358 12 443 12 820 11 910 10 806 11 227 Cooper
Slide 21: Share price
Share price Coop Pank share price and trading volume by dates Coop Pank share price compared to other banks Share price (€) and trading volume (thousand shares) Share prices indexed to 100 as at 10.12.2019 250 1.45 200 205 1.21 1.13 1.12 150 1.07 1.08 132 1.07 1.06 123 592 117 114 554 109 117 1.06 0
Slide 22: Growth strategy
2020 Q4 results 2020 results Stock information Growth strategy
Slide 23: Target: increasing number of clients
Target: increasing number of clients No of clients of Coop Pank and target No of customers of Coop Pank, thousand 21% growth of customer portfolio (on average p.a) >100 Number of 87 clients >100 000 64 45 36 31 2016 2017 2018 2019 2020 2021 2022
Slide 24: Target: growth of loan portfolio
Target: growth of loan portfolio Coop Pank loan portfolio and target Net loan portfolio of Coop Pank, m€ >1 000 37% growth of loan portfolio Loan portfolio (on average p.a) >1 bn € 671 460 329 238 153 2016 2017 2018 2019 2020 2021 2022
Slide 25: Target: reducing cost of financing
Target: reducing cost of financing Coop Pank cost of financing and target Cost of financing, % 1.0% 0.9% Cost of financing 0.8% <0.7% <0.7% 0.6% 0.6% 2016 2017 2018 2019 2020 2021 2022
Slide 26: Target: decreasing cost/income ratio
Target: decreasing cost/income ratio Cost/income ratio Cost / income ratio (CIR) 74% 69% 69% 67% 60% Cost/income ratio <50% <50% 2016 2017 2018 2019 2020 2021 2022
Slide 27: Target: increasing return on equity
Target: increasing return on equity Return on equity Return on equity (ROE) Return on equity 15% ~15% 11.7% 10.1% 9.8% 7.8% 5.3% 2016 2017 2018 2019 2020 2021 2022
Slide 28: Kerli Lõhmus
Margus Rink Chairman of Board, CEO margus.rink@cooppank.ee Kerli Lõhmus Member of Board, CFO kerli.lohmus@cooppank.ee https://www.cooppank.ee/en/for-investors
Slide 29: Financial results 5 years
Financial results 5 years Financial results and key indicators 2016 2017 2018 2019 2020 Net operating income ('000 €) 10 960 17 289 19 768 23 719 31 089 Interest 7 398 11 519 16 779 20 689 28 371 Service fee and commissions 2 737 2 170 2 302 2 372 2 097 Other 825 3 600 687 658 621 Operating expenses