ANNOUNCEMENT
01.11.2019
Inbank AS
Updated with Q3 2019 Interim Report in English.
Unaudited Financial Results of Inbank AS for Q3 2019
Inbank's Q3 2019 net profit was 2.22 EURm and the 9-month result was 6.57 EURm.
Return on equity in Q3 was 22%.
* Net profit grew 44% compared to Q3 2018, when Inbank's reported net profit
was 1.55 EURm and the 9-month result 6.23 EURm accordingly.
* Compared to Q3 2018, Inbank's loan portfolio increased by 56%, reaching 310
EURm. At the same time, the deposit portfolio doubled, reaching 375 EURm.
* Inbank continues to report solid and profitable growth on all four markets.
The overall sales of credit products was 220 EURm, which is 49% more
compared to the year before. The overall sales figure is split by countries
as follows: Estonia 70,7 EURm (+35%), Latvia 38,7 EURm (+29%), Lithuania
73,1 EURm (+22%), Poland 37,8 EURm (+562%).
* In Q3, the number of active contracts surpassed half a million reaching
519,000 by the end of the quarter.
* Inbank continues to grow and invest into both technology and people. This
year, Inbank has welcomed 83 new employees and by the end of Q3 Inbank Group
employs a total of 215 professionals.
Jan Andresoo, Chairman of the Management Board, comments on the results:
"From product point of view, the two main drivers of growth were the small loan
and hire purchase products. We are reporting solid sales across the past nine
months, especially in Poland, where year-on-year sales have increased seven
times making it the most successful hire-purchase market of Inbank Group.
Inbank's strategy for 2019 was to mainly focus on product development and
improve the overall competitiveness of our offering. Throughout the last three
quarters we have invested heavily into our technology team and will continue
doing so in the future. Whilst it is still too early to report the launch of new
products and services, I can confirm that in the near future we will be
surprising the markets with some new and innovative products.
We are ready to launch the Inbank branch in Lithuania and are currently waiting
for the final permission from the Bank of Lithuania. According to the initial
timeline we are planning to start our activity in the Lithuanian market as a
bank in Q4 2019. As Inbank continues to finance its operations mainly from its
retail deposits, establishing a branch in Lithuania will add a new source for
deposits and diversify our financing channels further.
In accordance with the strategic decision to sell our 7,94% shareholding in Coop
Pank, Inbank has already sold 4% of its shares in September 2019. We plan to
sell the remaining shares in the IPO process and to reinvest the capital to
support our international growth."
Key Financial Indicators 30.09.2019
* Total assets 446,0 EURm
* Loan portfolio 310,3 EURm
* Deposit portfolio 375,1 EURm
* Net profit 6,57 EURm
* Total equity? 43,9 EURm
* Return on equity 22,1%
Consolidated statement of profit and loss and other comprehensive
income
EURt
Q3 Q3
2019 9 months 2019 2018 9 months 2018
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Interest income 9 854 26 983 7 079 15 785
Interest expense -1 685 -4 471 -1 151 -2 549
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Net interest income 8 169 22 512 5 928 13 236
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Fee income 255 687 188 523
Fee expense -459 -1 261 -370 -720
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Net fee and commission
income -204 -574 -182 -197
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Net gains from financial
assets measured at fair
value 273 539 0 1 204
Other operating income 25 578 277 452
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Total net interest, fee
and other income 8 263 23 055 6 023 14 695
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Personnel expenses -2 001 -5 898 -1 509 -4 034
Marketing expenses -518 -1 687 -474 -945
Administrative expenses -1 009 -2 739 -800 -1 832
Depreciations,
amortisation -333 -912 -124 -284
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Total operating expenses -3 861 -11 236 -2 907 -7 095
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Profit before profit from
associates and impairment
losses on loans 4 402 11 819 3 116 7 600
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Share of profit from
associates 0 0 0 1 986
Impairment losses on loans
and advances -1 898 -4 845 -1 248 -3 087
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Profit before income tax 2 504 6 974 1 868 6 499
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Income tax -283 -408 -322 -274
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Profit for the period 2 221 6 566 1 546 6 225
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Other comprehensive
income/loss
Items that may be
reclassified subsequently
to profit or loss
Currency translation
differences 133 82 -58 52
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Total comprehensive income
for the period 2 354 6 648 1 488 6 277
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Net profit attributable to
Shareholders of parent
company 2 221 6 566 1 541 6 214
Non-controlling interest 0 0 4 11
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Profit for the reporting
period 2 221 6 566 1 545 6 225
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Total comprehensive income/loss is attributable to
Shareholders of parent
company 2 354 6 648 1 483 6 266
Non-controlling interest 0 0 5 11
----------------------------------------------------------------------
Total comprehensive income
for the reporting period 2 354 6 648 1 488 6 277
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Consolidated statement of financial position
EURt
30.09.2019 31.12.2018
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Assets
Cash in hand 4 4
Due from central banks 89 754 64 620
Due from credit institutions 29 411 13 700
Financial assets at fair value through profit and loss 2 390 4 600
Loans and advances 310 341 225 639
Investments in associates 97 97
Tangible assets 725 545
Right of use asset 764 0
Intangible assets 10 365 7 697
Other financial assets 83 64
Other assets 462 514
Deferred tax asset 1 573 564
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Total assets 445 969 318 044
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Loan from credit institution 0 10 429
Customer deposits 375 133 240 175
Other financial liabilities 10 801 8 776
Other liabilities 2 526 2 654
Debt securities issued 4 009 10 017
Subordinated debt securities 9 551 9 528
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Total liabilities 402 020 281 579
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Equity
Share capital 903 874
Share premium 15 908 15 053
Statutory reserve capital 88 79
Other reserves 1 536 1 401
Retained earnings 25 514 19 018
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Total equity attributable to the shareholders of parent
company 43 949 36 425
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Non-controlling interest 0 40
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Total equity 43 949 36 465
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Total liabilities and equity 445 969 318 044
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Inbank is a consumer finance focused digital bank active in the Baltics and
Poland with additional deposits accepted in Germany, Austria and Holland. Inbank
has over 1,700 active partners and 519,000 active contracts. Inbank bonds are
listed on the Nasdaq Baltic Stock Exchange.
Additional information
Kärri Brewster-Palts
Inbank AS
Head of Group Marketing
karri.brewster-palts@inbank.ee
+372 5565 5500
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