Market announcement

Title

Audited financial results of Inbank AS for 2016

Message

Inbank's Supervisory Board approved the audited annual report of Inbank for
2016.
Inbank recorded a profit of 2,62 million euros for 2016, which is about three
times more than in 2015. Inbank’s shareholders were in favor of the Management
Board’s proposal to distribute the profit as follows: 21 thousand euros will be
transferred to the statutory reserve capital and 2 626 thousand euros will be
transferred to retained profits. 

During Inbank’s second operating year, there was growth in the portfolios of
all product lines. Inbank grew its deposit portfolio by 117%, i.e. to
approximately 64.6 million euros. At the same time, its financing portfolio
increased by 86%, reaching 64.8 million euros. 

According to Jan Andresoo, Chairman of the Management Board of Inbank, the
results indicate that Inbank has chosen a functioning business model for its
operations. “Over a short period of time, we have achieved a market share of
more than 20 percent in new consumer financing sales in Estonia. It is also
remarkable that we have been able to invest in development and enter new
markets at the same time as growing our profit,” Andresoo said. 

According to Andresoo, last year was an important one for Inbank due to several
significant events. “The largest success of the year was the listing of Inbank
bonds on the stock exchange, which made us an even more open company. In
addition, Inbank started raising deposits from Germany and Austria, and we made
preparations for offering our products on the Polish market,” Andresoo said. 

Inbank’s Polish branch started its operations on 15 March 2017, offering
consumer financing and deposit products. In Poland, Inbank also offers fast
loan desicions and one of the best deposit rates on the market. 

Launching the activities of Coop Bank also played an important role in Inbank’s
operations in 2016. In the first half of 2017, Inbank intends to sell its
affiliates Coop Finants AS and Krediidipank Finants AS. Both companies will be
merged with Eesti Krediidipank in which Inbank currently has an almost ten
percent holding. In medium term perspective, Inbank intends to exit its
investment in Coop Bank and to focus its resources to support its expansion. 

Inbank's annual report is currently available only in Estonian. The English
version will be published on Inbank’s web page www.inbank.ee shortly. In case
of any questions, contact Inbank's Marketing and Communication Specialist
Kristin Pihu on e-mail [email protected]. 



Important financial indicators as at 31 December 2016:

  -- Balance sheet total 84.9 million euros
  -- Loan portfolio 64.8 million euros
  -- Deposits 64.6 million euros
  -- Net profit of the year 2.62 million euros
  -- Equity 11.8 million euros



Consolidated statement of comprehensive income

EUR (thousands)                                                    
                                                   2016        2015
                                                         (adjusted)
-------------------------------------------------------------------
Continuing operations                                              
Interest income                                   9,788       4,082
Interest expenses                                -1,404        -705
-------------------------------------------------------------------
Net interest income                               8,384       3,377
-------------------------------------------------------------------
                                                                   
Fee and commission income                           599         273
Fee and commission expenses                        -334        -246
-------------------------------------------------------------------
Net fee and commission income                       265          27
-------------------------------------------------------------------
                                                                   
Other operating income                              571         644
                                                                   
-------------------------------------------------------------------
Total income                                      9,220       4,048
-------------------------------------------------------------------
                                                                   
Personnel costs                                  -2,461      -1,505
Marketing expenses                                 -566        -222
Administrative expenses                          -1,014        -675
Depreciation, amortisation and impairment          -174        -157
-------------------------------------------------------------------
Total operating expenses                         -4,215      -2,559
-------------------------------------------------------------------
                                                                   
-------------------------------------------------------------------
Operating profit                                  5,005       1,489
-------------------------------------------------------------------
                                                                   
Profit from affiliates                              773         365
-------------------------------------------------------------------
Profit before loan losses                         5,778       1,854
-------------------------------------------------------------------
                                                                   
Loan losses                                      -3,219        -976
-------------------------------------------------------------------
Profit for the period before income tax           2,559         878
-------------------------------------------------------------------
                                                                   
Deferred tax                                         57          71
Net profit for the period                         2,616         949
-------------------------------------------------------------------
                                                                   
Unrealised exchange differences                       2           0
Total comprehensive income for the period         2,618         949
-------------------------------------------------------------------
                                                                   
Profit attributable to the parent company         2,649         987
Profit attributable to non-controlling interest     -31         -38
-------------------------------------------------------------------
Total comprehensive income for the period         2,618         949
-------------------------------------------------------------------





Consolidated financial position

EUR (thousands)                                                            
                                                     31.12.2016  31.12.2015
                                                                 (adjusted)
---------------------------------------------------------------------------
                                                                           
                                                                           
---------------------------------------------------------------------------
                                                                           
Assets                                                                     
Cash in hand                                                  4           3
Due from the central bank, incl. legal reserve           14,680         499
Due from credit institutions                              1,956       4,882
Loans and receivables                                    64,839      34,931
Investments in affiliates                                     1         868
Tangible assets                                             183          95
Intangible assets                                           902         760
Other assets                                                706         286
Affiliates held for sale                                  1,672           0
---------------------------------------------------------------------------
Total assets                                             84,943      42,324
---------------------------------------------------------------------------
                                                                           
Liabilities                                                                
Loans raised                                                  0         110
Deposits                                                 64,587      29,711
Debt securities                                               0       3,114
Other liabilities                                         2,077       1,381
Subordinated debt securities                              6,475           0
---------------------------------------------------------------------------
Total liabilities                                        73,139      34,316
---------------------------------------------------------------------------
                                                                           
Equity                                                                     
Share capital                                               689         569
Share premium                                             6,361       5,393
Retained profit/loss                                        681        -279
Reserves                                                  1,387       1,360
Other reserves                                               31           0
Total comprehensive income for the period                 2,649         987
---------------------------------------------------------------------------
Total equity held by shareholders of parent company      11 798  8 030     
---------------------------------------------------------------------------
Non-controlling interest                                      6         -22
---------------------------------------------------------------------------
Total equity                                             11,804       8,008
---------------------------------------------------------------------------
                                                                           
---------------------------------------------------------------------------
Total liabilities and equity                             84,943      42,324
---------------------------------------------------------------------------


Having started its operations as a bank in 2015, Inbank offers services via its
internet bank and its large partner network. Inbank operates on the Estonian,
Latvian and Polish consumer financing markets. In addition, international
deposits are raised from the German and Austrian markets. Inbank and its
affiliates have about 165 thousand active customer contracts in Estonia. 


         Kristin Pihu
         Inbank AS
         Marketing and Communication Specialist
         [email protected]
         +372 5348 2436