Inbank Interim Management statementFinancial results of Inbank AS for Q1 2019Inbank’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
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