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Inbank Unaudited Financial Results for Q3 and 9 Months 2022
In Q3 2022 Inbank earned a consolidated net profit of 13.4 million euros, increasing 265% year-on-year. The net profit in the first nine months of 2022 was 19 million euros, which is 136% more than the year before. The return on equity in Q3 was 57.7%.
Inbank’s loan portfolio increased by 31% compared to Q3 2021 reaching 711 million euros. The deposit portfolio grew 22% and reached 728 million euros by the end of Q3.
Total sales for Q3 was nearly 145 million euros increasing 7% year-on-year.
In terms of product segments, sales finance decreased 9% year-on-year to 86 million euros, amounting to 60% of total sales. Personal loans increased by 77% to nearly 27 million euros, while car financing increased in sales volume by 27% to 31 million euros.
On 1 July Inbank completed the sale of its 29.8% stake in Maksekeskus which resulted in 11.4 million euros of extraordinary profit in the third quarter.
By the end of Q3, the number of active contracts reached 845,000 growing 10% year-on-year.
Priit Põldoja, Chairman of the Management Board, comments on the results:
“Although Inbank continued its usual strong growth and sold credit products for a record 145 million euros, the financial results of the third quarter of 2022 were anything but usual. We earned a record profit of 13.4 million euros for Q3, however, this result was influenced by an extraordinary income and expenses.
Regardless of the difficult economic situation, Inbank continues on a strong wave of growth. Record sales increased the loan portfolio by 31% year-on-year, raising its value to 711.2 million euros. Sales volumes in the Baltics continued their record growth, amounting to 91.8 million. In an environment of higher interest rates and a weakening currency, Polish sales have stabilised at a quarterly level of 53.1 million euros, marking the best result since early 2022.
Our Czech branch launched the business in the third quarter and signed its first customer contracts. We continue to invest in technology and growth in new markets. To serve this goal, we will be merging our technology and product development units from 1 November. The new unit will be headed by Erik Kaju, who has spent 8 years managing technology teams at Wise, and who will also be joining Inbank’s management board. Piret Paulus has also returned from the sabbatical to resume her duties as a member of Inbank’s management board and as the new head of Inbank’s growth and business development unit.
All in all, Inbank is well positioned to succeed in an environment favouring the development of digital and green economy. Our technological infrastructure and product innovation-focused strategy provide growth opportunities across various product verticals and business models. That is why we continue to invest in growing our competitive edge even in difficult times.”
Key financial indicators for 30.09.2022 and Q3
Total assets EUR 913.4 million
Loan portfolio EUR 711.2 million
Deposit portfolio EUR 728.5 million
Total equity EUR 99.7 million
Net profit EUR 13.4 million
Return on equity 57.7%
Consolidated income statement (in thousands of euros)* | ||||
| Q3 2022 | Q3 2021 | 9 months 2022 | 9 months 2021 |
Interest income based on EIR | 17 198 | 12 270 | 45 956 | 34 859 |
Interest expense | -5 805 | -2 585 | -12 569 | -6 992 |
Net interest income | 11 393 | 9 685 | 33 387 | 27 867 |
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Fee income | 937 | 604 | 2 468 | 1 539 |
Fee expense | -975 | -735 | -2 566 | -2 307 |
Net fee and commission income | -38 | -131 | -98 | -768 |
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Net gains from financial assets measured at fair value | -149 | 0 | 9 | 0 |
Foreign exchange rate gains/losses | -528 | 133 | -781 | 2 |
Net gains/losses from financial items | -677 | 133 | -772 | 2 |
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Other operating income | 7 529 | 5 008 | 19 625 | 13 561 |
Other operating expense | -5 629 | -3 750 | -14 117 | -10 178 |
Total net interest, fee and other income | 12 578 | 10 945 | 38 025 | 30 484 |
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Personnel expenses | -3 273 | -2 947 | -10 021 | -8 530 |
Marketing expenses | -933 | -626 | -2 279 | -1 826 |
Administrative expenses | -2 267 | -1 431 | -6 126 | -4 127 |
Depreciations, amortisation | -1 183 | -876 | -3 286 | -2 421 |
Total operating expenses | -7 656 | -5 880 | -21 712 | -16 904 |
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Profit before profit from associates and impairment losses on loans | 4 922 | 5 065 | 16 313 | 13 580 |
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Share of profit from subsidiaries and associates | 11 570 | 6 | 11 430 | 263 |
Impairment losses on loans and advances | -3 050 | -1 251 | -8 710 | -4 997 |
Profit before income tax | 13 442 | 3 820 | 19 033 | 8 846 |
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Income tax | -37 | -145 | -76 | -820 |
Profit for the period | 13 405 | 3 675 | 18 957 | 8 026 |
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Other comprehensive income that may be reclassified subsequently to profit or loss |
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Currency translation differences | 231 | -160 | 266 | -101 |
Total comprehensive income for the period | 13 636 | 3 515 | 19 223 | 7 925 |
Consolidated statement of financial position (in thousands of euros) |
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| 30.09.2022 | 31.12.2021 | 30.09.2021 |
Assets |
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Due from central banks | 72 902 | 77 453 | 99 112 |
Due from credit institutions | 16 330 | 17 870 | 11 744 |
Investments in debt securities | 9 320 | 7 684 | 7 118 |
Financial assets designated at fair value through profit or loss | 19 | 0 | 0 |
Loans and advances | 711 180 | 604 848 | 543 206 |
Investments in associates | 1 076 | 774 | 4 792 |
Tangible assets | 41 610 | 19 147 | 16 426 |
Right of use asset | 23 463 | 25 231 | 25 776 |
Intangible assets | 25 330 | 22 423 | 21 521 |
Other financial assets | 3 037 | 2 151 | 1 317 |
Other assets | 5 995 | 2 769 | 5 078 |
Deferred tax asset | 3 122 | 2 401 | 2 381 |
Assets held for sale | 0 | 4 203 | 0 |
Total assets | 913 384 | 786 954 | 738 471 |
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Liabilities |
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Customer deposits | 728 457 | 617 857 | 599 007 |
Other financial liabilities | 51 295 | 49 188 | 45 508 |
Current tax liability | 234 | 284 | 788 |
Deferred tax liability | 74 | 125 | 72 |
Other liabilities | 3 083 | 3 296 | 5 546 |
Subordinated debt securities | 30 559 | 37 187 | 17 591 |
Total liabilities | 813 702 | 707 937 | 668 512 |
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Equity |
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Share capital | 1 023 | 997 | 970 |
Share premium | 31 655 | 30 436 | 24 463 |
Statutory reserve capital | 100 | 96 | 96 |
Other reserves | 2 088 | 1 625 | 1 539 |
Retained earnings | 64 816 | 45 863 | 42 891 |
Total equity | 99 682 | 79 017 | 69 959 |
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Total liabilities and equity | 913 384 | 786 954 | 738 471 |
*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:
| 31.12.2021 | Reclassification | 31.12.2021 restated | Q3 2021 | Reclassification | Q3 2021 restated | 9 months 2021 | Reclassification | 9 months 2021 restated |
Foreign exchange rate gains/losses | 0 | -23 | -23 | 0 | 133 | 133 | 0 | 2 | 2 |
Other operating expense | -13 833 | -418 | -14 251 | -3 681 | -69 | -3 750 | -9 994 | -184 | -10 178 |
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Administrative expenses | -6 627 | 441 | -6 186 | -1 367 | -64 | -1 431 | -4 309 | 182 | -4 127 |
Inbank is a consumer finance focused digital bank active in the Baltics, Poland, and the Czech Republic with additional deposits accepted in Germany, Austria, the Netherlands, and Finland. Inbank has over 6,000 active partners and 845,000 active 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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