May 18, 2022

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Inbank Unaudited Financial Results for Q3 and 9 Months 2021

In Q3 2021 Inbank earned a consolidated net profit of 3.7 million euros, increasing 153% year-on-year. The net profit in the first nine months of 2021 was 8 million euros, which is 92% more than the year before. The return on equity in Q3 was 21.5%.

  • Inbank’s loan portfolio increased by 45% compared to Q3 2020 reaching 543 million euros. The deposit portfolio grew 66% and reached 599 million euros by the end of Q3.

  • Total sales for Q3 was 135 million euros increasing 57% year-on-year. Growth was once again driven by the Polish business unit that contributed 62 million euros to total sales, 106% more than a year ago.

  • In terms of product segments, sales finance grew 48% year-on-year to 95 million euros, amounting to 70% of total sales. Personal loans increased by 137% to 15 million euros, while car financing increased in sales volume by 59% to 25 million euros.

  • By the end of Q3, the number of active contracts reached 743,000 growing 11% year-on-year.

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

In the third quarter, Inbank continued solid growth in terms of loan volumes and profits. Our quarterly sales of credit products amounted to 135 million euros, which is 10 million more than the previous peak in the second quarter of 2021. We also grew our profits by 2,5 times.

Growth continued to be driven by the Polish business unit, where sales volumes more than doubled compared to a year ago. Success in Poland has encouraged Inbank to look for new markets, as a result, we decided to expand operations into the Czech market, where we expect to start business at the end of the second quarter of 2022.

Inbank also made an investment to acquire a 30% stake in Paywerk, a cross-border pay later fintech. Inbank has a number of synergies with the new start-up that can support the bank’s future growth in existing and, above all, new European markets.

The third quarter of 2021 is characterised by record-low loan losses. This is due to the increased share of solar panel financing and car leasing, as well as customers’ better than expected payment behaviour. Decrease in overdues was impacted by the Estonian pension reform, as a result of which the overdue contracts of Estonian customers decreased by half.

For the first time in the past year, strong sales growth has been accompanied by considerably improved financial results. Inbank’s business model is trending towards lower margins and risk, while continuing to be rapidly growing and profitable. We expect the strong growth in volumes and profit to continue into the next quarter and next year.

Key financial indicators 30.09.2021

Total assets EUR 738.5 million
Loan portfolio EUR 543.2 million
Deposit portfolio EUR 599.0 million
Total equity EUR 70 million
Net profit EUR 8 million
Return on equity 21.5%

Consolidated income statement (in thousands of euros)

In thousands of euros

Q3 2021

Q3 2020

9 months 2021

9 months 2020

Interest income based on EIR

12 270

10 694

34 859

31 974

Interest expense

-2 585

-1 969

-6 992

-5 910

Net interest income

9 685

8 725

27 867

26 064

Fee income

604

254

1 539

811

Fee expense

-735

-546

-2 307

-1 548

Net fee and commission income

-131

-292

-768

-737

Other operating income

5 008

107

13 561

469

Other operating expense

-3 681

0

-9 994

0

Total net interest, fee and other income and expenses

10 881

8 540

30 666

25 796

Personnel expenses

-2 947

-2 152

-8 530

-7 008

Marketing expenses

-626

-301

-1 826

-1 001

Administrative expenses

-1 367

-962

-4 309

-3 061

Depreciations, amortisation

-876

-606

-2 421

-1 627

Total operating expenses

-5 816

-4 021

-17 086

-12 697

Profit before profit from associates and impairment losses on loans

5 065

4 519

13 580

13 099

Share of profit from subsidiaries and associates

6

76

263

668

Impairment losses on loans and advances

-1 251

-3 070

-4 997

-9 229

Profit before income tax

3 820

1 525

8 846

4 538

Income tax

-145

-74

-820

-350

Profit for the period

3 675

1 451

8 026

4 188

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

Currency translation differences

-160

-119

-101

-195

Total comprehensive income for the period

3 515

1 332

7 925

3 993

Consolidated statement of financial position (in thousands of euros)

30.09.2021

31.12.2020

Assets

Due from central banks

99 112

27 445

Due from credit institutions

11 744

19 784

Investments in debt securities

7 118

13 618

Loans and advances

543 206

402 212

Investments in associates

4 792

4 026

Tangible assets

16 426

833

Right of use asset

25 776

1 157

Intangible assets

21 521

16 139

Other financial assets

1 317

1 350

Other assets

5 078

1 297

Deferred tax asset

2 381

2 170

Total assets

738 471

490 031

Liabilities

Customer deposits

599 007

391 341

Other financial liabilities

45 508

12 218

Current Income tax liability

788

864

Deferred income tax liability

72

0

Other liabilities

5 546

2 810

Debt securities issued

0

4 010

Subordinated debt securities

17 591

17 563

Total liabilities

668 512

428 806

Equity

Share capital

970

961

Share premium

24 463

23 865

Statutory reserve capital

96

90

Other reserves

1 539

1 438

Retained earnings

42 891

34 871

Total equity

69 959

61 225

Total liabilities and equity

738 471

490 031

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 4,500 active partners and 743,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

Additional information:
Merit Arva
Inbank AS
Head of Corporate Communications
[email protected]
+372 553 3550

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