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Inbank Unaudited Financial Results for Q3 and 9 Months 2022

Inbank
Inbank

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

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

 

Profit before profit from associates and impairment losses on loans

4 922

5 065

16 313

13 580

 

 

 

 

 

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

 

 

 

 

 

Income tax

-37

-145

-76

-820

Profit for the period

13 405

3 675

18 957

8 026

 

 

 

 

 

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

 

 

 

 

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)

 

 

 

 

30.09.2022

31.12.2021

30.09.2021

Assets

 

 

 

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

 

 

 

 

Liabilities

 

 

 

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

 

 

 

 

Equity

 

 

 

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

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

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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