Coop Pank unaudited financial results for Q1 2025

Core Viewpoint - Coop Pank demonstrated growth in customer base, deposits, and loan portfolio in Q1 2025, despite a slight decrease in net income compared to previous periods [1][5][6]. Customer Growth - By the end of Q1 2025, Coop Pank had 213,000 customers, an increase of 5,000 customers in the quarter (+2%) and 23,000 in the year (+12%) [1]. - The number of active customers reached 101,800, with an increase of 2,400 (+3%) in the quarter and 17,400 (+21%) year-over-year [1]. Deposit Volume - In Q1 2025, the volume of deposits decreased by 29 million euros, totaling 1.91 billion euros, but increased by 221 million euros (+13%) compared to Q1 2024 [2]. - Deposits from private clients increased by 15 million euros, while deposits from domestic business customers rose by 39 million euros [2]. - The share of demand deposits in total deposits increased from 30% to 32% year-over-year [2]. Loan Portfolio - The net loan portfolio increased by 44 million euros (+3%) in Q1 2025, reaching 1.81 billion euros, with business and home loans showing the most significant growth [3]. - Compared to Q1 2024, the total loan portfolio grew by 287 million euros (+19%) [3]. Asset Quality - The overdue loan portfolio remained steady at 2.1%, down from 2.4% a year ago [4]. - Impairment costs of financial assets were 0.2 million euros, significantly lower than previous quarters [4]. Financial Performance - Net income for Q1 2025 was 19.3 million euros, a decrease of 3% quarter-over-quarter and 5% year-over-year [5]. - Net profit was 7.9 million euros, which is 24% higher than the previous quarter but 13% lower than a year ago [6]. - The cost-to-income ratio was 49%, and return on equity was 14.7% [6][10]. Market Position - Coop Pank held a 6.3% market share in deposits and a 6.6% share in loans by the end of Q1 2025 [9]. - The bank's growth in business volumes was at twice the rate of market growth [9]. Strategic Developments - In March 2025, Coop Pank issued covered bonds for the first time on the Irish Stock Exchange, amounting to 250 million euros, as part of a 750 million euros program [11][12]. - This issuance provides an additional long-term funding source to support business growth in Estonia [12]. Management Commentary - The Chairman of the Management Board noted positive signs in the economic environment but expressed concerns about declining confidence among local businesses due to trade wars [7][8].