In Q2 2024 Inbank earned a consolidated net profit of 3.8 million euros
increasing 41% year-on-year. The 2024 half-year net profit was 7.7 million
euros, which is 71% more than a year ago. The return on equity in Q2 was 11.6%.
* Loan and rental portfolio increased by 15% year-on-year reaching 1.08
billion euros. The deposit portfolio grew by 22% compared to a year ago,
totaling 1.18 billion euros. At the end of Q2, Inbank's total assets stood
at 1.42 billion euros.
* The Gross Merchandise Value (GMV) for the second quarter was 178 million
euros, which is 3% less than a year ago, but 10% more than in the previous
quarter.
* Merchant solutions remained the largest segment, with Q2 GMV of 65 million
euros. In terms of product segments, car finance showed strong results with
56 million euros of GMV, which is 32% more than a year ago. The GMV of green
finance decreased by 19% compared to a year ago and was 23 million euros.
Direct lending sales decreased by 10%, to 22.2 million euros and rental
services decreased by 19%, to 12 million euros.
* In Q2, impairment losses were 1.7% of the loan portfolio, for the first 6
months, the ratio was 1.5%.
* By the end of Q2, Inbank had 895,000 active contracts and 6,100 active
merchant partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
'During the second quarter of 2024, Inbank's financial performance continued to
improve steadily. On the back of declining funding costs and increasing
portfolio yield, Inbank's net income grew by 29% compared to the same quarter a
year ago, while operating expenses grew by 17% during the same period. As a
result, Inbank's quarterly net profit was 3.8 million euros which is 41% higher
than a year ago.
Sales results were stable in the Baltics and decreased slightly in Poland. Sales
in Czechia have more than doubled compared to a year ago and quarterly GMV was
above 10 million euros for the first time.
Considering our consistent repricing efforts in all markets over the last 18
months, we are very happy with our sales results, and this is a testament to our
product superiority.
For the first 6 months of the year, Inbank's impairment loss ratio was 1.5%. We
expect our credit cost to remain within our target of 1.6%, as employment has
remained strong and inflation is pulling back in all our markets.
Over the last 10 quarters, Inbank has managed to navigate a challenging macro
environment by demonstrating discipline in repricing our products and focusing
on operational efficiency. Margins have started to improve, and the cost-income
ratio is starting to move towards 50%. At the same time, we are investing in our
growth in the Czech market and will continue to bring our innovative electronics
rental product to all Inbank markets by the end of 2024.
Managing this balancing act of delivering improving financial results while
continuing to invest in our long-term competitiveness has been the focus of the
Inbank management team over the last 18 months. While remaining cautious and
disciplined, we are gearing up our organization to capture more growth
opportunities in the second half of 2024 and beyond.'
Key financial indicators as of 30.06.2024 and for Q2
Total assets EUR 1.42 billion
Loan and rental portfolio EUR 1.08 billion
Deposit portfolio EUR 1.18 billion
Equity EUR 133.1 million
Net profit EUR 3.8 million
Return on equity 11.6%
Consolidated income statement (in thousands of euros)
6 months 2023
Q2 2024 Q2 2023 restated 6 months 2024 restated
Interest income based
on EIR 29 308 23 957 58 076 45 460
Interest expense -13 072 -10 947 -26 684 -20 326
Net interest income 16 236 13 010 31 392 25 134
Fee and commission
income 106 118 217 241
Fee and commission
expenses -1 183 -1 058 -2 369 -1 996
Net fee and commission
income/expenses -1 077 -940 -2 152 -1 755
Income from rental
services 8 159 5 524 15 308 10 761
Sale of assets
previously rented to
customers 3 539 3 915 8 122 6 829
Other operating income 137 262 476 358
Cost of rental services -5 337 -3 517 -10 126 -7 025
Cost of assets sold
previously rented to
customers -3 386 -3 611 -7 736 -6 194
Net operating
income/expenses 3 112 2 573 6 044 4 729
Net gains/losses from
financial assets
measured at fair value 305 23 1 195 -34
Foreign exchange rate
gain/losses 557 205 218 288
Net gain/losses from
financial items 862 228 1 413 254
Total net interest, fee
and other income and
expenses 19 133 14 871 36 697 28 362
Personnel expenses -4 922 -4 134 -9 693 -8 171
Marketing expenses -704 -867 -1 337 -1 665
Administrative expenses -3 187 -2 711 -6 025 -5 118
Depreciations,
amortization -2 018 -1 578 -3 774 -2 972
Total operating
expenses -10 831 -9 290 -20 829 -17 926
Share of profit from
associates 0 361 0 394
Impairment losses on
loans and receivables -4 127 -3 485 -7 326 -6 614
Profit before income
tax 4 175 2 457 8 542 4 216
Income tax -398 218 -801 310
Profit for the period 3 777 2 675 7 741 4 526
Other comprehensive
income that may be
reclassified
subsequently to profit
or loss
Currency translation
differences -277 -291 -257 -336
Total comprehensive
income for the period 3 500 2 384 7 484 4 190
Consolidated statement of financial position (in thousands
of euros)
30.06.2024 31.12.2023 30.06.2023 restated
Assets
Cash and cash equivalents 234 457 172 921 117 593
Mandatory reserves at central banks 22 257 21 020 18 401
Investments in debt securities 25 767 33 581 31 269
Financial assets measured at fair
value through profit or loss 1 045 79 7
Loans and receivables 988 939 942 056 873 513
Investments in associates 205 141 209
Other financial assets 2 441 5 268 5 113
Tangible assets 81 001 75 206 62 536
Right of use assets 23 479 26 716 22 345
Intangible assets 31 915 30 906 28 318
Other assets 8 304 8 185 10 504
Deferred tax assets 4 747 4 505 3 973
Total assets 1 424 557 1 320 584 1 173 781
Liabilities
Customer deposits 1 175 569 1 081 566 965 692
Financial liabilities measured at
fair value through profit or loss 31 50 4
Other financial liabilities 58 870 60 927 56 114
Current tax liability 686 311 0
Deferred tax liability 374 204 103
Other liabilities 3 923 3 691 3 583
Subordinated debt securities 52 010 49 745 41 799
Total liabilities 1 291 463 1 196 494 1 067 295
Equity
Share capital 1 096 1 086 1 026
Share premium 44 804 43 563 31 855
Statutory reserve 103 103 103
Other reserves 1 250 1 543 1 384
Retained earnings 85 841 77 795 72 118
Total equity 133 094 124 090 106 486
Total liabilities and equity 1 424 557 1 320 584 1 173 781
Inbank is a financial technology company with an EU banking license that
connects merchants, consumers and financial institutions on its next generation
embedded finance platform. Partnering with 6,100 merchants, Inbank has 895,000+
active contracts and collects deposits across 7 markets in Europe. Inbank bonds
are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Merit Arva
Head of Communications
merit.arva@inbank.ee
+372 553 3550
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