Published: 2019-08-06 06:55:00 CEST
Inbank
Interim Management statement

Financial Results of Inbank AS for Q2 2019

Inbank announces Q2 2019 comprehensive income of 2.27 EURm and H1 2019 comprehensive income of 4.29 EURm.

Inbank continued on a strong growth trajectory across all four of its home markets in H1 2019 with credit product sales increasing by 49%. Poland, with its nearly 7x growth contributed by almost half towards Inbank’s total growth. The group loan portfolio increased by 54.7%, reaching 275.6 EURm and the deposit portfolio by 71.3% to 272.8 EURm.

Estonia contributed 45.7 EURm to the group credit product sales, Lithuania, Latvia and Poland respectively 43.3 EURm, 24.2 EURm and 20.6 EURm. Year-on-year sales growth in Poland was 588%, 37% in Estonia, 32% in Latvia and 23% in Lithuania.
Commenting on the positive results, Inbank CEO Jan Andresoo said, ’The strong results of Q2 and H1 reflected our expectations. Compared to the same period a year ago, the sales growth is nearly 50% and we are particularly pleased with the performance in Poland. These results are indicative of the positive and effective dynamics we have been working towards for a while now.’

Inbank’s Q2 and H1 2019 comprehensive income was, respectively, 2.27 EURm and 4.29 EURm. The 2018 results were 0.88 EURm and 4.79 EURm. ’It should be noted that the numbers have been affected by one-off events such as the revaluation of Coop Pank shares in the amount of 0.3 EURm and the effect of recognized deferred tax asset attributable to previous periods in the amount of 0.3 EURm,’ said Andresoo.

The most significant focus points of H1 highlighted by Andresoo were product development and innovation in addition to the highly promising partnership with payment services facilitator PayU in Poland. He added that the main focus of Inbank’s product development continues to be simplifying commerce and helping Inbank’s partners sell more. The whole organisation is dedicated to being able to introduce some new solutions as early as at the end of this year. ’The other notable development, our partnership with PayU, has ensured that our services are now available to 40 million Polish consumers via thousands of e-commerce merchants,’ he added.

Andresoo also highlighted the ongoing brand launch preparations in Lithuania as a key development, adding that all relevant information has been shared with the Estonian FSA.
’We acquired Mokilizingas last year and established ourselves in the Lithuanian market. Preparations for phase two - launching the Inbank brand- are now under way. This step gives us an additional market for acquiring deposits and diversifying our financing channels,’ said Andresoo.

Q2 also saw Inbank make a strategic decision to commence with the sales process of its 7.94% stake in Coop Pank AS – Inbank plans to invest this capital in its international growth and development.

Key financial indicators (30th of June 2019):

·      Balance Sheet 338.2EURm
·      Loan Portfolio 275.6EURm
·      Deposit Portfolio 272.8EURm
·      Comprehensive Income 4.29EURm
·      Total Equity 40.66EURm
·      Return on Equity 22.5%


Condensed consolidated statement of profit and loss and other comprehensive income  
EURt     
 Q2 2019H1 2019Q2 2018H1 2018 
      
Interest income8,97417,1294,9098,706 
Interest expense-1,396-2,786-827-1,398 
Net interest income7,57814,3434,0827,308 
      
Fee income228432174335 
Fee expense-427-802-196-350 
Net fee and commission income-199-370-22-15 
      
Net gains from financial assets measured at fair value26626601,204 
Other operating income30855391175 
      
Total net interest, fee and other income7,95314,7924,1518,672 
      
Personnel expenses-2,041-3,897-1,314-2,525 
Marketing expenses-778-1,169-345-471 
Administrative expenses-931-1,730-566-1,032 
Depreciations, amortisation-302-579-93-160 
Total operating expenses-4,052-7,375-2,318-4,188 
      
Profit before profit from associates and impairment losses on loans3,9017,4171,8334,484 
      
Share of profit from associates0001,986 
Impairment losses on loans and advances-1,752-2,947-987-1,839 
Profit before income tax2,1494,4708464,631 
      
Income tax174-125-5548 
Profit for the period2,3234,3457914,679 
      
Other comprehensive income/loss     
Items that may be reclassified subsequently to profit or loss     
Currency translation differences-50-5190110 
Total comprehensive income for the period2,2734,2948814,789 
      
Net profit attributable to     
Shareholders of parent company2,3234,3457884,673 
Non-controlling interest0036 
Profit for the reporting period2,3234,3457914,679 
      
Total comprehensive income/loss is attributable to    
Shareholders of parent company2,2734,2948784,783 
Non-controlling interest0036 
Total comprehensive income for the reporting period2,2734,2948814,789 
      
      
      
Condensed consolidated statement of financial position    
EURt     
  30.06.2019 31.12.2018 
      
Assets     
Cash in hand 4 4 
Due from central banks 25,402 64,620 
Due from credit institutions 19,458 13,700 
Financial assets at fair value through profit and loss5,187 4,600 
Loans and advances  275,582 225,639 
Investments in associates 97 97 
Tangible assets 672 545 
Right of use asset 862 0 
Intangible assets 9,138 7,697 
Other financial assets 72 64 
Other assets 511 514 
Deferred tax asset 1,235 564 
Total assets 338,220 318,044 
      
      
Loan from credit institution 0 10,429 
Customer deposits 272,839 240,175 
Other financial liabilities 9,020 8,776 
Other liabilities 2,146 2,654 
Debt securities issued 4,009 10,017 
Subordinated debt securities 9,543 9,528 
Total liabilities 297,557 281,579 
      
Equity     
Share capital 874 874 
Share premium 15,053 15,053 
Statutory reserve capital 88 79 
Other reserves 1,373 1,401 
Retained earnings 23,275 19,018 
Total equity attributable to the shareholders of parent company40,663 36,425 
Non-controlling interest 0 40 
Total equity 40,663 36,465 
      
Total liabilities and equity 338,220 318,044 


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 1,500 active partners and 500,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

For further information please contact:
Kärri Brewster-Palts
Inbank AS
Head of Group Marketing
karri.brewster-palts@inbank.ee
00372 5565 5500



Attachment


Inbank_Interim_Report_Q2_2019.pdf