In Q1 2022 Inbank earned a net profit of 2.9 million euros. The quarterly profit grew by 15% compared to a year ago and return on equity was 14.8%.
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Inbank’s loan portfolio increased by 48% compared to Q1 2021 reaching 640 million euros.
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The deposit portfolio grew by 50% and reached 677 million euros by the end of Q1.
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Total sales for Q1 was 125 million euros increasing 29% year-on-year.
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In terms of product segments, sales finance grew 22% year-on-year to 86 million euros, amounting to 68% of total sales. Personal loans increased by 70% to 15 million euros, while car financing increased in sales volume by 38% to 23 million euros.
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By the end of Q1, Inbank had 804,000 active contracts and over 4,700 active merchant partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
‘While the first quarter of the year started strongly for Inbank, the situation changed overnight when Russia launched the war against Ukraine on 24 February.
In the first weeks of the war, consumer behaviour changed drastically, and this had an impact on Inbank’s first-quarter sales results. By the end of March, the situation stabilised and total sales for the quarter amounted to 125 million euros, which is 29% more than a year ago.
All in all, the first quarter of 2022 was once again full of challenges, which the external environment has presented to us since the beginning of the health crisis. However, with our flexible structure and focus on partners and customers, Inbank has been able to respond promptly to all changes. As the war in Ukraine continues, it is expected that higher inflation will change the interest rate environment, to which the bank must respond. Although the payment behaviour of customers has remained sound, the effects of the war are expected to affect credit quality in the second half of the year, which is why we increased our provisions for credit risk in the first quarter. Inbank’s focus in the coming quarters will be on providing high-quality services to our partners, maintaining profitability and successfully entering the Czech market.’
Key financial indicators 31.03.2022
Total assets EUR 846 million
Loan portfolio EUR 640 million
Deposit portfolio EUR 677 million
Total equity EUR 82.1 million
Net profit EUR 2.94 million
Return on equity 14.8%
| Consolidated income statement (in thousands of euros) | ||||
| Q1 2022 | Q1 2021 | 3 months 2022 | 3 months 2021 | |
| Interest income based on EIR | 13 821 | 11 116 | 13 821 | 11 116 |
| Interest expense | -2 947 | -2 143 | -2 947 | -2 143 |
| Net interest income | 10 874 | 8 973 | 10 874 | 8 973 |
| Fee income | 705 | 449 | 705 | 449 |
| Fee expense | -802 | -789 | -802 | -789 |
| Net fee and commission income | -97 | -340 | -97 | -340 |
| Net gains from financial assets measured at fair value | -184 | 0 | -184 | 0 |
| Foreign exchange rate gains/losses | -27 | 60 | -27 | 60 |
| Net gains/losses from financial items | -211 | 60 | -211 | 60 |
| Other operating income | 5 659 | 3 522 | 5 659 | 3 522 |
| Other operating expense | -3 794 | -2 721 | -3 794 | -2 721 |
| Total net interest, fee and other income | 12 431 | 9 494 | 12 431 | 9 494 |
| Personnel expenses | -3 289 | -2 751 | -3 289 | -2 751 |
| Marketing expenses | -563 | -543 | -563 | -543 |
| Administrative expenses | -1 851 | -1 114 | -1 851 | -1 114 |
| Depreciations, amortisation | -1 009 | -740 | -1 009 | -740 |
| Total operating expenses | -6 712 | -5 148 | -6 712 | -5 148 |
| Profit before profit from associates and impairment losses on loans | 5 719 | 4 346 | 5 719 | 4 346 |
| Share of profit from subsidiaries and associates | -58 | 336 | -58 | 336 |
| Impairment losses on loans and advances | -2 573 | -1 805 | -2 573 | -1 805 |
| Profit before income tax | 3 088 | 2 877 | 3 088 | 2 877 |
| Income tax | -147 | -331 | -147 | -331 |
| Profit for the period | 2 941 | 2 546 | 2 941 | 2 546 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | 0 | 0 | 0 | 0 |
| Currency translation differences | 96 | -126 | 96 | -126 |
| Total comprehensive income for the period | 3 037 | 2 420 | 3 037 | 2 420 |
| Consolidated statement of financial position (in thousands of euros) | ||
| 31.03.2022 | 31.03.2021 | |
| Assets | ||
| Due from central banks | 89 709 | 50 349 |
| Due from credit institutions | 17 565 | 19 185 |
| Investments in debt securities | 8 425 | 15 205 |
| Loans and advances | 639 653 | 432 672 |
| Investments in associates | 716 | 4 238 |
| Tangible assets | 25 982 | 7 837 |
| Right of use asset | 25 943 | 29 809 |
| Intangible assets | 23 224 | 17 247 |
| Other financial assets | 3 207 | 1 231 |
| Other assets | 4 653 | 2 334 |
| Deferred tax asset | 2 601 | 2 250 |
| Assets held for sale | 4 203 | 0 |
| Total assets | 845 881 | 582 357 |
| Liabilities | ||
| Customer deposits | 676 918 | 452 592 |
| Other financial liabilities | 46 203 | 40 816 |
| Current tax liability | 167 | 1 096 |
| Deferred tax liability | 89 | 0 |
| Other liabilities | 3 173 | 3 343 |
| Debt securities issued | 0 | 0 |
| Subordinated debt securities | 37 041 | 17 573 |
| Total liabilities | 763 591 | 515 420 |
| Equity | ||
| Share capital | 997 | 961 |
| Share premium | 30 436 | 23 865 |
| Statutory reserve capital | 100 | 96 |
| Other reserves | 1 773 | 1 364 |
| Retained earnings | 48 800 | 37 252 |
| Total equity | 82 106 | 63 538 |
| Total liabilities and equity | 845 697 | 578 958 |
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 4,700 active partners and 804,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.