Inbank
Interim Management statementUpdate: Unaudited Financial Results of Inbank AS for Q3 2019ANNOUNCEMENT
01.11.2019
Inbank AS
Updated with Q3 2019 Interim Report in English.
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 | | | EURt | | | | | | | | Q3
2019 | 9 months 2019 | Q3
2018 | 9 months 2018 | | | | | | | | | | | | | | | | | Interest income | 9 854 | 26 983 | 7 079 | 15 785 | | | Interest expense | -1 685 | -4 471 | -1 151 | -2 549 | | | Net interest income | 8 169 | 22 512 | 5 928 | 13 236 | | | | | | | | | | Fee income | 255 | 687 | 188 | 523 | | | Fee expense | -459 | -1 261 | -370 | -720 | | | Net fee and commission income | -204 | -574 | -182 | -197 | | | | | | | | | | Net gains from financial assets measured at fair value | 273 | 539 | 0 | 1 204 | | | Other operating income | 25 | 578 | 277 | 452 | | | | | | | | | | Total net interest, fee and other income | 8 263 | 23 055 | 6 023 | 14 695 | | | | | | | | | | 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 loans | 4 402 | 11 819 | 3 116 | 7 600 | | | | | | | | | | Share of profit from associates | 0 | 0 | 0 | 1 986 | | | Impairment losses on loans and advances | -1 898 | -4 845 | -1 248 | -3 087 | | | Profit before income tax | 2 504 | 6 974 | 1 868 | 6 499 | | | | | | | | | | Income tax | -283 | -408 | -322 | -274 | | | Profit for the period | 2 221 | 6 566 | 1 546 | 6 225 | | | | | | | | | | Other comprehensive income/loss | | | | | | | Items that may be reclassified subsequently to profit or loss | | | | | | | Currency translation differences | 133 | 82 | -58 | 52 | | | Total comprehensive income for the period | 2 354 | 6 648 | 1 488 | 6 277 | | | | | | | | | | Net profit attributable to | | | | | | | Shareholders of parent company | 2 221 | 6 566 | 1 541 | 6 214 | | | Non-controlling interest | 0 | 0 | 4 | 11 | | | Profit for the reporting period | 2 221 | 6 566 | 1 545 | 6 225 | | | | | | | | | | Total comprehensive income/loss is attributable to | | | | Shareholders of parent company | 2 354 | 6 648 | 1 483 | 6 266 | | | | | | | Non-controlling interest | 0 | 0 | 5 | 11 | | | | | | | Total comprehensive income for the reporting period | 2 354 | 6 648 | 1 488 | 6 277 | | | | | |
Consolidated statement of financial position
| | EURt | | | | | 30.09.2019 | 31.12.2018 | | | | | | | | | | Assets | | | | Cash in hand | 4 | 4 | | Due from central banks | 89 754 | 64 620 | | Due from credit institutions | 29 411 | 13 700 | | Financial assets at fair value through profit and loss | 2 390 | 4 600 | | Loans and advances | 310 341 | 225 639 | | Investments in associates | 97 | 97 | | Tangible assets | 725 | 545 | | Right of use asset | 764 | 0 | | Intangible assets | 10 365 | 7 697 | | Other financial assets | 83 | 64 | | Other assets | 462 | 514 | | Deferred tax asset | 1 573 | 564 | | Total assets | 445 969 | 318 044 | | | | | | | | | | Loan from credit institution | 0 | 10 429 | | Customer deposits | 375 133 | 240 175 | | Other financial liabilities | 10 801 | 8 776 | | Other liabilities | 2 526 | 2 654 | | Debt securities issued | 4 009 | 10 017 | | Subordinated debt securities | 9 551 | 9 528 | | Total liabilities | 402 020 | 281 579 | | | | | | Equity | | | | Share capital | 903 | 874 | | Share premium | 15 908 | 15 053 | | Statutory reserve capital | 88 | 79 | | Other reserves | 1 536 | 1 401 | | Retained earnings | 25 514 | 19 018 | | Total equity attributable to the shareholders of parent company | 43 949 | 36 425 | | Non-controlling interest | 0 | 40 | | Total equity | 43 949 | 36 465 | | | | | | Total liabilities and equity | 445 969 | 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 1,700 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
karri.brewster-palts@inbank.ee
+372 5565 5500
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