Coop Pank (CPA1T) Q4 2024 earnings summary

Executive summary

• Loan portfolio grew 19% year-over-year to €1.77bn, outpacing market growth rates.

• Net profit for 2024 was €32.2m, down 18% from 2023, mainly due to higher interest expenses and operating costs.

• Active customer base increased by 21% to 99,400, with total customers up 14% to 208,000.

• CIR rose to 50% for the year and 54% in Q4; ROE declined to 16.2% for the year and 12.3% in Q4.

• Moody’s affirmed Baa2 rating with positive outlook.

Financial highlights

• Net operating income decreased 4% year-over-year to €81.9m.

• Interest income rose 15% to €138.7m, but interest expenses surged 55% to €61.1m.

• Operating expenses increased 16% to €40.6m for the year and 9% year-over-year in Q4.

• Net interest margin fell to 3.8% for the year and 3.6% in Q4; cost of financing increased to 3.3%.

• EPS for 2024 was €0.31; P/E ratio at 6.3.

Outlook and guidance

• Targeting over 150,000 active clients and over €2bn loan portfolio by 2026.

• Aims to keep CIR below 50% and ROE above 15% long-term.

• First covered bond issuance expected in H1 2025, subject to market conditions.

• Recognized as a systemically important credit institution from 2025.