Coop Pank (CPA1T) Q4 2023 earnings summary

Executive summary

• FY2023 net profit rose 93% to €39.2m; net operating income increased 56% to €85.2m from €54.6m.

• Net loans grew 15% to €1.491bn and deposits and loans received increased 14% to €1.722bn; active customers rose 23%.

• Q4 net profit was €8.4m, up 29% YoY but down 24% QoQ; results included a €1.8m Latvian property write-down.

Financial highlights

• FY2023 net interest income increased 60% to €81.3m; net fee and commission income rose 28% to €4.8m.

• FY2023 operating expenses rose 29% to €35.1m, impairment costs increased 20% to €6.3m, and income tax rose 146% to €4.6m.

• Q4 net operating income was €20.4m, down 10% QoQ and up 23% YoY; operating profit was €10.5m, down 24% QoQ.

• Q4 operating expenses were €9.9m, up 10% QoQ and 34% YoY; net profit was €8.4m and basic EPS was €0.08 versus €0.07 in Q4 2022.

Outlook and guidance

• 2026 targets: more than 150,000 active clients and a loan portfolio above €2bn, versus 82,000 active clients and €1.491bn net loans in 2023.

• 2026 targets are CIR below 50% and ROE above 15%; 2023 results were 41% and 23.5%, respectively.