Coop Pank earned 2.8 million euros in net profit for the quarter
21.04.2021
In the first quarter of this year, Coop Pank made almost twice as much profit as in the same period last year. In the first quarter of 2021, Coop Pank's net profit amounted to 2.8 million euros, which is 94% more than in the same period last year.
“Almost a twofold increase in net profit in annual comparison is explained by the growth of the bank's business by almost 40%. The number of clients, deposits and the amount of the loan portfolio has increased,” said Margus Rink, chairman of the board of Coop Pank.
By the end of the first quarter, Coop Pank had 93,200 customers – during the quarter their number increased by 6,500. The volume of deposits increased during the quarter by 91 million euros, of which more than two-thirds – that is 65 million euros – were domestic deposits. 44 million of them came from business clients and 21 million from private clients. “In addition, the bank took advantage of the favourable interest rate environment and raised an additional 25 million euros through the international Raisin platform,” Rink said.
The bank’s loan portfolio increased by 25 million euros in the first quarter having reached 696 million euros by the end of March. The fastest growing was the home loan portfolio, which increased by 17 million euros. The business loan portfolio grew by 8 million euros and the leasing portfolio by 1 million euros. The consumer loan portfolio did not increase in the first quarter.
The growth in the bank's business was also accompanied by an improvement in investment performance indicators. Coop Pank’s net profit was almost twice as high as a year ago. The cost-to-income ratio fell to 58%, financing costs decreased to 0.8%, and the return on equity rose to 11.5%.
In order to support the strategy of further growth, in March the bank issued subordinated bonds. This was the first series of Coop Pank’s 20 million euro subordinated bond program. The initial subscription volume of 8 million euros was exceeded by 6.2 times, which confirms investor confidence in the bank’s growth plans. We decided to increase the volume of issue to 10 million euros and to give preference to our clients and shareholders, among whom we have distributed two thirds of the total volume of bonds.