Inbank Unaudited Financial Results for Q3 and 9 Months 2022
Inbank
6 min read
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
