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Inbank Unaudited Financial Results for Q2 and 6 Months 2022

·6-min read
Inbank
Inbank

In Q2 2022 Inbank earned a net profit of 2.6 million euros, increasing 45% year-on-year. The 2022 half-year net profit was 5.6 million euros, which is 28% more than the year before. The return on equity in Q2 was 12.5%.

  • Inbank’s loan portfolio increased by 37% compared to Q2 2021 reaching 674 million euros. The deposit portfolio grew by 36% and reached 709 million euros by the end of Q2.

  • Total sales for Q2 was 129 million euros increasing 4% year-on-year. In terms of product segments, sales finance decreased 15% year-on-year to 76 million euros, amounting to 58% of total sales. Personal loans increased by 56% to 23 million euros, while car financing increased in sales volume by 44% to 31 million euros.

  • On 1 July Inbank completed the sale of its 29.8% stake in Maksekeskus which will result in 11.5 million euros of extraordinary profit in the third quarter.

  • By the end of Q2, Inbank had 823,000 active customer contracts and over 5,100 active merchant partners.

Priit Põldoja, Chairman of the Management Board, comments on the results:

“For the tenth consecutive quarter, Inbank is operating in a rather unclear environment. At the same time, our business volumes continue to reach new records. We sold credit products worth 129.6 million euros and made a profit of 2.6 million euros. In the first half of the year, Inbank earned 5.6 million euros in net profit.

While in the past two years, Inbank’s growth was driven by the Polish market, the Baltic countries were once again the bank’s growth engine in the past quarter. The main reason for the change is the rise in interest rates to 7% in the Polish market. Higher interest rates and rise in the cost of living have clearly reduced growth volumes in Poland. We are glad to see that Inbank’s diversified business model is working well and the decline in growth in Poland was compensated by record sales in the Baltics.

Navigating a complex environment has been part of Inbank’s growth story. Our success has been driven mainly by product development, investments in technology, and growth in new markets. Many of these investments have proven to be fruitful. We have done the same this time. On 1 July, the sale of Inbank’s 29.8% stake in Maksekeskus was finalised. As a result, Inbank will earn an extraordinary profit of 11.5 million euros in the third quarter. The capital earned from the sale of Maksekeskus will serve Inbank as a good buffer to cope in a more complex environment.

Also, in June Inbank was approved by the Czech National Bank to provide financial services in the Czech Republic. Already in July, Inbank signed its first sales finance contract there which lays the foundation for Inbank’s growth in yet another European market.”

Key financial indicators for 30.06.2022 and Q2

Total assets EUR 876 million
Loan portfolio EUR 674 million
Deposit portfolio EUR 709 million
Total equity EUR 84.7 million
Net profit EUR 2.61 million
Return on equity 12.5%

Consolidated income statement (in thousands of euros)*

 

Q2 2022

Q2 2021

6 months 2022

6 months 2021

Interest income based on EIR

14 937

11 473

28 758

22 589

Interest expense

-3 817

-2 264

-6 764

-4 407

Net interest income

11 120

9 209

21 994

18 182

 

 

 

 

 

Fee income

826

486

1 531

935

Fee expense

-789

-783

-1 591

-1 572

Net fee and commission income

37

-297

-60

-637

 

 

 

 

 

Net gains from financial assets measured at fair value

342

0

158

0

Foreign exchange rate gains/losses

-226

-191

-253

-131

Net gains/losses from financial items

116

-191

-95

-131

 

 

 

 

 

Other operating income

6 437

5 031

12 096

8 553

Other operating expense

-4 614

-3 707

-8 488

-6 428

Total net interest, fee and other income

13 096

10 045

25 447

19 539

 

 

 

 

 

Personnel expenses

-3 476

-2 832

-6 748

-5 583

Marketing expenses

-783

-657

-1 346

-1 200

Administrative expenses

-2 071

-1 582

-3 859

-2 696

Depreciations, amortisation

-1 094

-805

-2 103

-1 545

Total operating expenses

-7 424

-5 876

-14 056

-11 024

 

 

 

 

 

Profit before profit from associates and impairment losses on loans

5 672

4 169

11 391

8 515

 

 

 

 

 

Share of profit from subsidiaries and associates

-82

-79

-140

257

Impairment losses on loans and advances

-3 087

-1 941

-5 660

-3 746

Profit before income tax

2 503

2 149

5 591

5 026

 

 

 

 

 

Income tax

108

-344

-39

-675

Profit for the period

2 611

1 805

5 552

4 351

 

 

 

 

 

Other comprehensive income that may be reclassified subsequently to profit or loss

 

 

 

 

Currency translation differences

-61

185

35

59

Total comprehensive income for the period

2 550

1 990

5 587

4 410


Consolidated statement of financial position (in thousands of euros)

 

 

30.06.2022

31.12.2021

30.06.2021

Assets

 

 

 

Due from central banks

79 484

77 453

64 123

Due from credit institutions

13 442

17 870

18 881

Investments in debt securities

8 994

7 684

6 194

Financial assets designated at fair value through profit or loss

153

0

0

Loans and advances

673 566

604 848

492 211

Investments in associates

816

774

4 429

Tangible assets

34 368

19 147

12 563

Right of use asset

25 354

25 231

27 385

Intangible assets

24 265

22 423

21 043

Other financial assets

2 350

2 151

1 388

Other assets

6 690

2 769

3 326

Deferred tax asset

2 764

2 401

2 258

Assets held for sale

4 203

4 203

0

Total assets

876 449

786 954

653 801

 

 

 

 

Liabilities

 

 

 

Customer deposits

708 727

617 857

520 907

Other financial liabilities

49 417

49 188

45 027

Current tax liability

95

284

637

Deferred tax liability

73

125

0

Other liabilities

2 871

3 296

3 891

Subordinated debt securities

30 540

37 187

17 582

Total liabilities

791 723

707 937

588 044

 

 

 

 

Equity

 

 

 

Share capital

997

997

961

Share premium

30 436

30 436

23 865

Statutory reserve capital

100

96

96

Other reserves

1 782

1 625

1 619

Retained earnings

51 411

45 863

39 216

Total equity

84 726

79 017

65 757

 

 

 

 

Total liabilities and equity

876 449

786 954

653 801


*To provide better overview, an adjustment was made in the 31.12.2021 report, which resulted in reclassification of the subsidiary's 100% buyout option expense which is now reflected in the same expense group as the subsidiary's other operating expense. In addition, due to the growth of Polish and Czech business and foreign currency transactions, foreign exchange gains and losses were reclassified from administrative expenses and are reported under "Foreign exchange rate revaluation losses/gains". The effect of the change on the report and the numerical indicators are presented in the table below:

 

Q2 2021

Reclassification

Q2 2021 restated

6 months 2021

Reclassification

6 months 2021 restated

Foreign exchange rate gains/losses

0

-191

-191

0

-131

-131

Other operating expense

-3 592

-115

-3 707

-6 313

-115

-6 428

 

 

 

 

 

 

 

Administrative expenses

-1 888

306

-1 582

-2 942

246

-2 696

 

Inbank is a consumer finance focused digital bank active in the Baltics, Poland, and Czechia with additional deposits accepted in Germany, Austria, the Netherlands and Finland. Inbank has over 5,100 active partners and 823,000 active customer contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange. 

Additional information:

Merit Arva
Inbank AS
Head of Communications
merit.arva@inbank.ee
+372 553 3550



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