Published: 2019-05-29 07:55:00 CEST
Inbank
Interim Management statement

Financial results of Inbank AS for Q1 2019

Inbank’s sales increased significantly in all four home markets in Q1 2019, growing by 46% year-on-year. Loan portfolio of the Group increased annually by 150% and deposit portfolio by 173%.

Net profit in the first quarter reached €2 million. By comparison, same figure in the first three months of 2018 was €3.9 million, which resulted from two one-off transactions: selling of Veriff shares and reducing the stake in Coop Pank. “However, if these one-off effects are eliminated and the Q1 2018 result of Mokilizingas is taken into account, profit growth from comparable operating activities would be 102%” said Jan Andresoo, Chairman of the Management Board of Inbank.

At the end of the first quarter, Inbank’s loan portfolio reached €246 million while deposit portfolio surpassed €276 million. “Loan portfolio increased by 9% and deposit portfolio by 15% on a quarterly basis, which confirms that the economic activities of Inbank as a specialised bank rest on a firm foundation and demonstrate strong growth,” noted Andresoo.

“Our sales figures exhibited solid growth in all of our markets. Most importantly, there was a significant increase in business volumes in Poland, where the quarterly sales increased by 450% year-on-year, reaching €8.2 million,” commented Jan Andresoo. “Sales growth was 38% in Estonia, and 26% in Lithuania and Latvia,” he added.

The most important project in the first quarter highlighted by Andresoo was the preparatory work done for opening an Inbank branch in Lithuania. “We have submitted all required documents to the Financial Supervision Authority and are ready to go ahead with the official procedure of opening the branch,” he added.

One of the most important new products launched in the Estonian market was the car exchange loan in cooperation with auto24. The loan allows the consumer to purchase a new car without having to hurry with the sale of their old car. “We can see that the Estonian car financing market has significant growth potential. A product that is targeted at the consumer currently selling their car helps us to add a new target group into our client portfolio,” commented Andresoo.


Key financial indicators of Inbank as at 31 March 2019

  • Total assets – €340.7 million
  • Loan portfolio – €245.6 million
  • Deposit portfolio – €276.5 million
  • Profit – €2.0 million
  • Equity – €38.4 million
  • Return on equity – €21.9%


Condensed consolidated statement of profit and loss and other comprehensive income

EURt        
  Q1 2019 3 months 2019 Q1 2018 3 months 2018
         
Interest income 8 155 8 155 3 797 3 797
Interest expense -1 390 -1 390 -571 -571
Net interest income 6 765 6 765 3 226 3 226
         
Fee income 204 204 161 161
Fee expense -375 -375 -154 -154
Net fee and commission income -171 -171 7 7
         
Net gains from financial assets measured at fair value 0 0 1 204 1 204
Other operating income 245 245 84 84
         
Total net interest, fee and other income 6 839 6 839 4 521 4 521
         
Personnel expenses -1 856 -1 856 -1 211 -1 211
Marketing expenses -391 -391 -126 -126
Administrative expenses -799 -799 -466 -466
Depreciations, amortisation -277 -277 -67 -67
Total operating expenses -3 323 -3 323 -1 870 -1 870
         
Profit before profit from associates and impairment losses on loans 3 516 3 516 2 651 2 651
         
Share of profit from associates 0 0 1 986 1 986
Impairment losses on loans and advances -1 195 -1 195 -852 -852
Profit before income tax 2 321 2 321 3 785 3 785
         
Income tax -299 -299 103 103
Profit for the period 2 022 2 022 3 888 3 888
         
Other comprehensive income/loss        
Items that may be reclassified subsequently to profit or loss        
Currency translation differences -1 -1 20 20
Total comprehensive income for the period 2 021 2 021 3 908 3 908
         
Net profit attributable to        
Shareholders of parent company 2 022 2 022 3 885 3 885
Non-controlling interest 0 0 3 3
Profit for the reporting period 2 022 2 022 3 888 3 888
         
Total comprehensive income/loss is attributable to      
Shareholders of parent company 2 021 2 021 3 905 3 905
Non-controlling interest 0 0 3 3
Total comprehensive income for the reporting period 2 021 2 021 3 908 3 908


Condensed consolidated statement of financial position

EURt    
  31.03.2019 31.12.2018
     
     
Assets    
Cash in hand 4 4
Due from central banks 66 289 64 620
Due from credit institutions 13 312 13 700
Financial assets at fair value through profit and loss 4 600 4 600
Loans and advances 245 563 225 639
Investments in associates 97 97
Tangible assets 581 545
Right of use asset 992 0
Intangible assets 8 073 7 697
Other financial assets 63 64
Other assets 546 514
Deferred tax asset 564 564
Total assets 340 684 318 044
     
     
Loan from credit institution 0 10 429
Customer deposits 276 460 240 175
Other financial liabilities 10 264 8 776
Other liabilities 2 039 2 654
Debt securities issued 4 009 10 017
Subordinated debt securities 9 535 9 528
Total liabilities 302 307 281 579
     
Equity    
Share capital 874 874
Share premium 15 053 15 053
Statutory reserve capital 88 79
Other reserves 1 410 1 401
Retained earnings 20 952 19 018
Total equity attributable to the shareholders of parent company 38 377 36 425
Non-controlling interest 0 40
Total equity 38 377 36 465
     
Total liabilities and equity 340 684 318 044


Inbank is an Estonian consumer finance focused bank which also operates in Latvia, Lithuania and Poland, and receives deposits from Germany, Austria and the Netherlands. Inbank has more than 1,500 active partners and over 478,000 active customer contracts. Inbank’s bonds are listed on the Nasdaq Tallinn Stock Exchange on the Baltic Bond List.


Further information:
Kristin Pihu
Inbank AS
Head of Marketing and Communication
kristin.pihu@inbank.ee
+372 5348 2436

Attachment


Inbank interim report 1Q2019.pdf

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