In Q2 2022 Inbank earned a net profit of 2.6 million euros, increasing 45% year-
on-year. The 2022 half-year net profit was 5.6 million euros, which is 28% more
than the year before. The return on equity in Q2 was 12.5%.
* Inbank's loan portfolio increased by 37% compared to Q2 2021 reaching 674
million euros. The deposit portfolio grew by 36% and reached 709 million
euros by the end of Q2.
* Total sales for Q2 was 129 million euros increasing 4% year-on-year. In
terms of product segments, sales finance decreased 15% year-on-year to 76
million euros, amounting to 58% of total sales. Personal loans increased by
56% to 23 million euros, while car financing increased in sales volume by
44% to 31 million euros.
* On 1 July Inbank completed the sale of its 29.8% stake in Maksekeskus which
will result in 11.5 million euros of extraordinary profit in the third
quarter.
* By the end of Q2, Inbank had 823,000 active customer contracts and over
5,100 active merchant partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
"For the tenth consecutive quarter, Inbank is operating in a rather unclear
environment. At the same time, our business volumes continue to reach new
records. We sold credit products worth 129.6 million euros and made a profit of
2.6 million euros. In the first half of the year, Inbank earned 5.6 million
euros in net profit.
While in the past two years, Inbank's growth was driven by the Polish market,
the Baltic countries were once again the bank's growth engine in the past
quarter. The main reason for the change is the rise in interest rates to 7% in
the Polish market. Higher interest rates and rise in the cost of living have
clearly reduced growth volumes in Poland. We are glad to see that Inbank's
diversified business model is working well and the decline in growth in Poland
was compensated by record sales in the Baltics.
Navigating a complex environment has been part of Inbank's growth story. Our
success has been driven mainly by product development, investments in
technology, and growth in new markets. Many of these investments have proven to
be fruitful. We have done the same this time. On 1 July, the sale of Inbank's
29.8% stake in Maksekeskus was finalised. As a result, Inbank will earn an
extraordinary profit of 11.5 million euros in the third quarter. The capital
earned from the sale of Maksekeskus will serve Inbank as a good buffer to cope
in a more complex environment.
Also, in June Inbank was approved by the Czech National Bank to provide
financial services in the Czech Republic. Already in July, Inbank signed its
first sales finance contract there which lays the foundation for Inbank's growth
in yet another European market."
Key financial indicators for 30.06.2022 and Q2
Total assets EUR 876 million
Loan portfolio EUR 674 million
Deposit portfolio EUR 709 million
Total equity EUR 84.7 million
Net profit EUR 2.61 million
Return on equity 12.5%
Consolidated income statement (in thousands of euros)*
Q2 2022 Q2 2021 6 months 2022 6 months 2021
Interest income based on EIR 14 937 11 473 28 758 22 589
Interest expense -3 817 -2 264 -6 764 -4 407
Net interest income 11 120 9 209 21 994 18 182
Fee income 826 486 1 531 935
Fee expense -789 -783 -1 591 -1 572
Net fee and commission income 37 -297 -60 -637
Net gains from financial assets
measured at fair value 342 0 158 0
Foreign exchange rate gains/losses -226 -191 -253 -131
Net gains/losses from financial
items 116 -191 -95 -131
Other operating income 6 437 5 031 12 096 8 553
Other operating expense -4 614 -3 707 -8 488 -6 428
Total net interest, fee and other
income 13 096 10 045 25 447 19 539
Personnel expenses -3 476 -2 832 -6 748 -5 583
Marketing expenses -783 -657 -1 346 -1 200
Administrative expenses -2 071 -1 582 -3 859 -2 696
Depreciations, amortisation -1 094 -805 -2 103 -1 545
Total operating expenses -7 424 -5 876 -14 056 -11 024
Profit before profit from
associates and impairment losses
on loans 5 672 4 169 11 391 8 515
Share of profit from subsidiaries
and associates -82 -79 -140 257
Impairment losses on loans and
advances -3 087 -1 941 -5 660 -3 746
Profit before income tax 2 503 2 149 5 591 5 026
Income tax 108 -344 -39 -675
Profit for the period 2 611 1 805 5 552 4 351
Other comprehensive income that
may be reclassified subsequently
to profit or loss
Currency translation differences -61 185 35 59
Total comprehensive income for the
period 2 550 1 990 5 587 4 410
Consolidated statement of financial position (in thousands of
euros)
30.06.2022 31.12.2021 30.06.2021
Assets
Due from central banks 79 484 77 453 64 123
Due from credit institutions 13 442 17 870 18 881
Investments in debt securities 8 994 7 684 6 194
Financial assets designated at fair value
through profit or loss 153 0 0
Loans and advances 673 566 604 848 492 211
Investments in associates 816 774 4 429
Tangible assets 34 368 19 147 12 563
Right of use asset 25 354 25 231 27 385
Intangible assets 24 265 22 423 21 043
Other financial assets 2 350 2 151 1 388
Other assets 6 690 2 769 3 326
Deferred tax asset 2 764 2 401 2 258
Assets held for sale 4 203 4 203 0
Total assets 876 449 786 954 653 801
Liabilities
Customer deposits 708 727 617 857 520 907
Other financial liabilities 49 417 49 188 45 027
Current tax liability 95 284 637
Deferred tax liability 73 125 0
Other liabilities 2 871 3 296 3 891
Subordinated debt securities 30 540 37 187 17 582
Total liabilities 791 723 707 937 588 044
Equity
Share capital 997 997 961
Share premium 30 436 30 436 23 865
Statutory reserve capital 100 96 96
Other reserves 1 782 1 625 1 619
Retained earnings 51 411 45 863 39 216
Total equity 84 726 79 017 65 757
Total liabilities and equity 876 449 786 954 653 801
*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:
6 6 months
Q2 Q2 2021 months 2021
2021 Reclassification restated 2021 Reclassification restated
Foreign
exchange rate
gains/losses 0 -191 -191 0 -131 -131
Other
operating -3
expense 592 -115 -3 707 -6 313 -115 -6 428
Administrative -1
expenses 888 306 -1 582 -2 942 246 -2 696
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 5,100 active partners and 823,000
active customer 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
|