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Inbank Unaudited Financial Results for Q4 and Full Year 2022
In Q4 2022 Inbank earned a consolidated net profit of 2.1 million euros, decreasing 27% year-on-year. The net profit for the full year of 2022 was 21.1 million euros increasing 92% year-on-year. The return on equity in Q4 was 8.4% and for the full year 23.3%.
Inbank’s loan portfolio increased by 25% compared to Q4 2021 reaching 755 million euros. The deposit portfolio grew 34% and reached 829 million euros by the end of Q4. At the end of 2022, Inbank’s total assets exceeded 1 billion euros.
Total sales for Q4 were 135 million euros, decreasing 4% year-on-year. In terms of product segments, sales finance decreased 16% year-on-year to 87.2 million euros, amounting to 64% of total sales. Personal loans increased by 34.8% to nearly 21.3 million euros, while car financing increased in sales volume by 27.8% to 26.9 million euros.
Annual total sales for 2022 was 535 million euros showing an increase of 7.5% compared to 2021. Together with car subscription subsidiary Mobire, the sales volumes reached 577 million euros and grew 10% year-on-year. Growth was driven by sales finance, which contributed almost 337 million euros.
By the end of Q4, the number of active contracts reached 865,000 and active partners exceeded 5,400.
Priit Põldoja, Chairman of the Management Board, comments on the results:
“While Inbank closes a strong 2022 with another solid quarter, we continue to navigate extraordinary circumstances. It’s been almost a year since Russia’s attack on Ukraine. Increasing inflationary pressures have resulted in sharp interest rises, first in Poland and then in the Eurozone. Rising rates have had an increasing impact on Inbank’s performance during the last few quarters.
Despite high inflation and decreasing consumer confidence, our credit portfolio has remained resilient. Our impairment losses increased compared to the record low in 2021 by 68% to 11.2 million euros. However, the impairment loss to the average credit portfolio remained at the 1.6% level. In Q4, Inbank’s impairment losses were 1.3%. This result is a testament to our strong credit underwriting capabilities.
In many respects, 2022 was an extraordinary year for Inbank. We made a record profit of 21.1 million euros, of which the 11.4 million euro extraordinary profit resulted from the sale of our 29.8% stake in Maksekeskus. For the first time, our total assets reached over 1 billion euros. We continued our international expansion by entering the Czech market.
We believe that our long-term opportunity in embedded finance is substantial, and we will continue to invest in new products as well as in international expansion. Nevertheless, with a challenging interest rate environment and uncertain economic prospects in Europe for 2023, we will need to remain attentive to external forces while pursuing our profitable growth strategy.”
Key financial indicators as of 31.12.2022 and for Q4
Total assets EUR 1.02 billion
Loan portfolio EUR 755.1 million
Deposit portfolio EUR 828.9 million
Total equity EUR 101.9 million
Net profit EUR 2.1 million
Return on equity 8.4%
Consolidated income statement (in thousands of euros)* |
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| Q4 2022 | Q4 2021 | 12 months 2022 | 12 months 2021 |
Interest income based on EIR | 19 436 | 13 179 | 65 392 | 48 038 |
Interest expense | -7 583 | -2 598 | -20 152 | -9 590 |
Net interest income | 11 853 | 10 581 | 45 240 | 38 448 |
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Fee and commission income | 1 092 | 661 | 3 560 | 2 200 |
Fee and commission expenses | -1 070 | -810 | -3 636 | -3 117 |
Net fee and commission income/expenses | 22 | -149 | -76 | -917 |
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Net gains from financial assets measured at fair value | 23 | 0 | 32 | 0 |
Foreign exchange rate losses | 1 | -25 | -780 | -23 |
Net losses from financial items | 24 | -25 | -748 | -23 |
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Other operating income | 8 103 | 5 786 | 28 621 | 19 347 |
Other operating expenses | -6 670 | -4 073 | -21 680 | -14 251 |
Total net interest, fee and other income and expenses | 13 332 | 12 120 | 51 357 | 42 604 |
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Personnel expenses | -3 801 | -3 093 | -13 822 | -11 623 |
Marketing expenses | -1 071 | -1 003 | -3 350 | -2 829 |
Administrative expenses | -2 549 | -2 059 | -8 675 | -6 186 |
Depreciations, amortisation | -1 186 | -939 | -4 472 | -3 360 |
Total operating expenses | -8 607 | -7 094 | -30 319 | -23 998 |
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Profit before profit from associates and impairment | 4 725 | 5 026 | 21 038 | 18 606 |
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Share of profit from associates | -11 | 72 | 11 419 | 335 |
Impairment losses on loans and advances | -2 460 | -1 671 | -11 170 | -6 668 |
Profit before income tax | 2 254 | 3 427 | 21 287 | 12 273 |
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Income tax | -120 | -490 | -196 | -1 310 |
Profit for the period | 2 134 | 2 937 | 21 091 | 10 963 |
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Other comprehensive income that may be reclassified subsequently to profit or loss |
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Currency translation differences | -268 | 42 | -2 | -59 |
Total comprehensive income for the period | 1 866 | 2 979 | 21 089 | 10 904 |
Consolidated statement of financial position (in thousands of euros) |
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| 31.12.2022 | 31.12.2021 | 31.12.2020 |
Assets |
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Due from central banks | 126 990 | 77 453 | 27 445 |
Due from credit institutions | 18 345 | 17 870 | 19 784 |
Financial assets designated at fair value through profit or loss | 37 | 0 | 0 |
Investments in debt securities | 8 415 | 7 684 | 13 618 |
Loans and advances | 755 100 | 604 848 | 402 212 |
Investments in associates | 1 065 | 774 | 4 026 |
Assets classified as held for sale | 0 | 4 203 | 0 |
Other financial assets | 3 387 | 2 151 | 1 350 |
Tangible assets | 48 533 | 19 147 | 833 |
Right of use assets | 23 247 | 25 231 | 1 157 |
Intangible assets | 26 249 | 22 423 | 16 139 |
Other assets | 5 961 | 2 769 | 1 297 |
Deferred tax assets | 3 166 | 2 401 | 2 170 |
Total assets | 1 020 495 | 786 954 | 490 031 |
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Liabilities |
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Customer deposits | 828 894 | 617 857 | 391 341 |
Other financial liabilities | 55 240 | 49 188 | 12 218 |
Current tax liability | 0 | 284 | 864 |
Deferred tax liability | 187 | 125 | 0 |
Other liabilities | 3 680 | 3 296 | 2 810 |
Debt securities issued | 0 | 0 | 4 010 |
Subordinated debt securities | 30 570 | 37 187 | 17 563 |
Total liabilities | 918 571 | 707 937 | 428 806 |
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Equity |
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Share capital | 1 026 | 997 | 961 |
Share premium | 31 855 | 30 436 | 23 865 |
Statutory reserve | 100 | 96 | 90 |
Other reserves | 1 421 | 1 625 | 1 438 |
Retained earnings | 67 522 | 45 863 | 34 871 |
Total equity | 101 924 | 79 017 | 61 225 |
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Total liabilities and equity | 1 020 495 | 786 954 | 490 031 |
*To provide a better overview, an adjustment was made in the 31.12.2021 financial statements, 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 expenses. 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". The effect of the changes on the financial statements and the numerical indicators are presented in the table below:
In thousands of euros | 31.12.2021 | Reclassification | 31.12.2021 restated | Q4 2021 | Reclassification | Q4 2021 restated | 12 months 2021 | Reclassification | 12 months 2021 restated |
Foreign exchange rate losses | 0 | -23 | -23 | 0 | -25 | -25 | 0 | -23 | -23 |
Other operating expense | -13 833 | -418 | -14 251 | -3 839 | -234 | -4 073 | -13 833 | -418 | -14 251 |
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Administrative expenses | -6 627 | 441 | -6 186 | -2 318 | 259 | -2 059 | -6 627 | 441 | -6 186 |
Inbank is a consumer finance focused digital bank active in the Baltics, Poland, and the Czech Republic with additional deposits accepted in Germany, Austria, and the Netherlands. Inbank has over 5,400 active partners and 865,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.
Additional information:
Merit Arva
AS Inbank
Head of Communications
merit.arva@inbank.ee
+372 553 3550
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