Published: 2019-10-31 06:55:00 CET
Interim Management statement

Unaudited Financial Results of Inbank AS for Q3 2019

Inbank AS

Unaudited Financial Results of Inbank AS for Q3 2019

Inbank’s Q3 2019 net profit was 2.22 EURm and the 9-month result was 6.57 EURm. Return on equity in Q3 was 22%.

  • Net profit grew 44% compared to Q3 2018, when Inbank’s reported net profit was 1.55 EURm and the 9-month result 6.23 EURm accordingly.
  • Compared to Q3 2018, Inbank’s loan portfolio increased by 56%, reaching 310 EURm. At the same time, the deposit portfolio doubled, reaching 375 EURm.
  • Inbank continues to report solid and profitable growth on all four markets. The overall sales of credit products was 220 EURm, which is 49% more compared to the year before. The overall sales figure is split by countries as follows: Estonia 70,7 EURm (+35%), Latvia 38,7 EURm (+29%), Lithuania 73,1 EURm (+22%), Poland 37,8 EURm (+562%).
  • In Q3, the number of active contracts surpassed half a million reaching 519,000 by the end of the quarter.
  • Inbank continues to grow and invest into both technology and people. This year, Inbank has welcomed 83 new employees and by the end of Q3 Inbank Group employs a total of 215 professionals.

Jan Andresoo, Chairman of the Management Board, comments on the results:

“From product point of view, the two main drivers of growth were the small loan and hire purchase products. We are reporting solid sales across the past nine months, especially in Poland, where year-on-year sales have increased seven times making it the most successful hire-purchase market of Inbank Group.

Inbank’s strategy for 2019 was to mainly focus on product development and improve the overall competitiveness of our offering. Throughout the last three quarters we have invested heavily into our technology team and will continue doing so in the future. Whilst it is still too early to report the launch of new products and services, I can confirm that in the near future we will be surprising the markets with some new and innovative products.

We are ready to launch the Inbank branch in Lithuania and are currently waiting for the final permission from the Bank of Lithuania. According to the initial timeline we are planning to start our activity in the Lithuanian market as a bank in Q4 2019. As Inbank continues to finance its operations mainly from its retail deposits, establishing a branch in Lithuania will add a new source for deposits and diversify our financing channels further.

In accordance with the strategic decision to sell our 7,94% shareholding in Coop Pank, Inbank has already sold 4% of its shares in September 2019. We plan to sell the remaining shares in the IPO process and to reinvest the capital to support our international growth.”

Key Financial Indicators 30.09.2019

  • Total assets 446,0 EURm
  • Loan portfolio 310,3 EURm
  • Deposit portfolio 375,1 EURm
  • Net profit 6,57 EURm
  • Total equity 43,9 EURm
  • Return on equity 22,1%
Consolidated statement of profit and loss and other comprehensive income 
9 months 2019Q3
9 months 2018 
Interest income9 85426 9837 07915 785 
Interest expense-1 685-4 471-1 151-2 549 
Net interest income8 16922 5125 92813 236 
Fee income255687188523 
Fee expense-459-1 261-370-720 
Net fee and commission income-204-574-182-197 
Net gains from financial assets measured at fair value27353901 204 
Other operating income25578277452 
Total net interest, fee and other income8 26323 0556 02314 695 
Personnel expenses-2 001-5 898-1 509-4 034 
Marketing expenses-518-1 687-474-945 
Administrative expenses-1 009-2 739-800-1 832 
Depreciations, amortisation-333-912-124-284 
Total operating expenses-3 861-11 236-2 907-7 095 
Profit before profit from associates and impairment losses on loans4 40211 8193 1167 600 
Share of profit from associates0001 986 
Impairment losses on loans and advances-1 898-4 845-1 248-3 087 
Profit before income tax2 5046 9741 8686 499 
Income tax-283-408-322-274 
Profit for the period2 2216 5661 5466 225 
Other comprehensive income/loss     
Items that may be reclassified subsequently to profit or loss     
Currency translation differences13382-5852 
Total comprehensive income for the period2 3546 6481 4886 277 
Net profit attributable to     
Shareholders of parent company2 2216 5661 5416 214 
Non-controlling interest00411 
Profit for the reporting period2 2216 5661 5456 225 
Total comprehensive income/loss is attributable to  
Shareholders of parent company2 3546 6481 4836 266     
Non-controlling interest00511     
Total comprehensive income for the reporting period2 3546 6481 4886 277     

Consolidated statement of financial position

Cash in hand44
Due from central banks89 75464 620
Due from credit institutions29 41113 700
Financial assets at fair value through profit and loss2 3904 600
Loans and advances 310 341225 639
Investments in associates9797
Tangible assets725545
Right of use asset7640
Intangible assets10 3657 697
Other financial assets8364
Other assets462514
Deferred tax asset1 573564
Total assets445 969318 044
Loan from credit institution010 429
Customer deposits375 133240 175
Other financial liabilities10 8018 776
Other liabilities2 5262 654
Debt securities issued4 00910 017
Subordinated debt securities9 5519 528
Total liabilities402 020281 579
Share capital903874
Share premium15 90815 053
Statutory reserve capital8879
Other reserves1 5361 401
Retained earnings25 51419 018
Total equity attributable to the shareholders of parent company43 94936 425
Non-controlling interest040
Total equity43 94936 465
Total liabilities and equity445 969318 044

Inbank Q3 2019 Interim Report in English will be published on the 1st of November, 2019

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 1,700 active partners and 519,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

Additional information

Kärri Brewster-Palts
Inbank AS
Head of Group Marketing
00372 5565 5500