Coop Pank (CPA1T) Q2 2024 earnings summary

Executive summary

• Business volumes grew 11% year-over-year, with active customers up 17% and net loan portfolio up €163m.

• Net profit for Q2 2024 was €8.0m, down 23% year-over-year and 12% sequentially.

• Cost/income ratio rose to 49% from 38% a year ago, while ROE declined to 16.4% from 25.6%.

• Interest income increased 22% year-over-year, but interest expenses surged 107%, compressing margins.

• Loan portfolio quality remains strong, with past due loans at 2.2% and credit risk cost ratio at 0.2%.

Financial highlights

• Net operating income for Q2 2024 was €20.5m, down 9% year-over-year but up 1% sequentially.

• Interest income reached €34.7m (+22% YoY), while interest expense rose to €15.4m (+107% YoY).

• Operating expenses increased 18% year-over-year to €10.1m, mainly due to higher personnel and marketing costs.

• Impairment costs decreased 45% year-over-year to €1.2m, but rose 113% sequentially.

• EPS for Q2 2024 was €0.078, down from €0.102 a year ago.

Outlook and guidance

• Interest rate environment is expected to keep net revenues flat despite business volume growth.

• All regulatory capital requirements met; focus on sustainable growth and digital innovation.

• New subordinated loan of €15m from EEEF to finance sustainability projects, strengthening long-term capital.