Inbank
Quarterly report Inbank Unaudited Financial Results for Q3 and 9 Months 2020In Q3 2020 Inbank earned a net profit of 1.45 million euros. The net profit in the first 9 months of 2020 was 4.2 million euros. The return on equity in Q3 was 11.3%.
- Q3 net profit decreased by 35% compared to Q2 2019 and amounted to 1.45 million euros. Respectively, the net profit in the first 9 months of 2020 decreased by 36% year-on-year to 4.2 million euros.
- Profit before loan losses for the quarter increased by 4% compared to Q3 2019 and amounted to 4.6 million euros. Provisions for loan losses increased by 62% year-on-year to 3.1 million euros.
- Inbank loan portfolio increased 21% compared to Q3 2019 reaching 374 million euros while the deposit portfolio decreased 3.5% to 362 million euros at the end of Q3.
- Total sales for Q3 was 88.2 million euros, showing an increase of 9% compared to Q3 of the previous year. In terms of products, personal loan sales decreased by 63% and car financing products by 18% while the sales finance volumes increased by 55% compared to the previous year. The share of sales finance in total sales was 74% or 65.6 million euros.
- By the end of Q3, Inbank had 600,000 active contracts and worked with 3,200 merchant partners.
Jan Andresoo, Chairman of the Management Board, comments on the results: “The third quarter was very fast-paced and eventful, and certainly more successful than expected. We actively improved our existing products and prepared for the launch of our first credit card and mobile app. While in the second quarter we saw a sharp drop in sales volumes, the sales results of the third quarter were a positive surprise – the growth was 47% compared to the previous quarter. The total sales volume for all our markets amounted to 88.2 million euros and increased by 9% compared to the previous year. The share of sales finance in total sales was 74% or 65.6 million euros. This is a 55% increase year-on-year. One of the reasons is certainly the Polish unit, which has done a great job with sales and was able to start cooperation with a large number of new sales finance partners. In the third quarter, Poland accounted for 46% of total sales finance volume.
The modest volumes of small loans were affected by our own decision to take a more conservative approach to credit underwriting. The quarterly sales of both car finance and small loans decreased significantly year-on-year: 18% and 63%, respectively. Although we were more conservative in credit underwriting, a general decline in demand was also noticeable. As a large share of our customers applying for a grace period in the spring preferred a three-month period, their next payment date after the grace period was in the third quarter. It is positive to note that 87% of these customers continued to service their contracts as per usual. Also, the general payment discipline of customers can be considered very good at the moment. We also made preparations for the launch of our first card product. Inpay, which is publicly launched by now, is a payment app and card with a unique cashback programme in Estonia, with which the customer earns money back on everyday purchases. As we enter the cards and payments market, we are moving into the territory of everyday shopping and see great potential in building a bridge between our extensive network of retailers and our customer base. The coronavirus crisis naturally impacted our financial results, but sales volumes have recovered faster than expected and the third quarter ended with a clear positive note. Also, the crisis has not affected our product development and innovation capacity or reduced our investments. As an organisation, we continue to be growth-oriented and believe that new products will help us increase our growth rate again. ” Key financial indicators 30.09.2020 Total assets EUR 449 million
Loan portfolio EUR 374 million
Deposit portfolio EUR 362 million
Total equity EUR 52 million
Net profit EUR 4.2 million
Return on equity 11.3%
Consolidated income statement (in thousands of euros)
| | | Q3
2020 | Q3
2019 | 9 months
2020 | 9 months
2019 | | Interest income | 10 694 | 9 854 | 31 974 | 26 983 | | Interest expense | -1 969 | -1 685 | -5 910 | -4 471 | | Net interest income | 8 725 | 8 169 | 26 064 | 22 512 | | | | | | | | Fee income | 254 | 255 | 811 | 687 | | Fee expense | -546 | -459 | -1 548 | -1 261 | | Net fee and commission income | -292 | -204 | -737 | -574 | | | | | | | | Net gains from financial assets measured at fair value | 0 | 273 | 0 | 539 | | Other operating income | 107 | 25 | 469 | 578 | | Total net interest, fee and other income | 8 540 | 8 263 | 25 796 | 23 055 | | | | | | | | Personnel expenses | -2 152 | -2 001 | -7 008 | -5 898 | | Marketing expenses | -301 | -518 | -1 001 | -1 687 | | Administrative expenses | -962 | -1 009 | -3 061 | -2 739 | | Depreciations, amortisation | -606 | -333 | -1 627 | -912 | | Total operating expenses | -4 021 | -3 861 | -12 697 | -11 236 | | | | | | | | Profit before profit from associates and impairment losses on loans | 4 519 | 4 402 | 13 099 | 11 819 | | | | | | | | Share of profit from associates | 76 | 0 | 668 | 0 | | Impairment losses on loans and advances | -3 070 | -1 898 | -9 229 | -4 845 | | Profit before income tax | 1 525 | 2 504 | 4 538 | 6 974 | | | | | | | | Income tax | -74 | -283 | -350 | -408 | | Profit for the period | 1 451 | 2 221 | 4 188 | 6 566 | | incl. shareholders of parent company | 1 451 | 2 221 | 4 188 | 6 566 | | | | | | | | Other comprehensive income that may be reclassified subsequently to profit or loss | | | | | | Currency translation differences | -119 | 133 | -195 | 82 | | Total comprehensive income for the period | 1 332 | 2 354 | 3 993 | 6 648 | | incl. shareholders of parent company | 1 332 | 2 354 | 3 993 | 6 648 |
Consolidated statement of financial position (in thousands of euros)
| | | 30/09/2020 | 31/12/2019 | | Assets | | | | Due from central banks | 22 563 | 83 080 | | Due from credit institutions | 16 580 | 20 655 | | Investments in debt securities | 11 567 | 0 | | Loans and advances | 374 424 | 338 157 | | Investments in associates | 3 763 | 3 276 | | Tangible assets | 864 | 840 | | Right of use asset | 445 | 773 | | Intangible assets | 14 927 | 11 721 | | Other financial assets | 837 | 1 692 | | Other assets | 1 095 | 588 | | Deferred tax asset | 1 993 | 1 985 | | Total assets | 449 058 | 462 767 | | | | | | Liabilities | | | | Customer deposits | 361 854 | 377 518 | | Other financial liabilities | 11 279 | 13 545 | | Other liabilities | 2 712 | 2 837 | | Debt securities issued | 4 010 | 4 010 | | Subordinated debt securities | 17 554 | 17 537 | | Total liabilities | 397 409 | 415 447 | | | | | | Equity | | | | Share capital | 909 | 903 | | Share premium | 16 082 | 15 908 | | Statutory reserve capital | 90 | 88 | | Other reserves | 1 411 | 1 463 | | Retained earnings | 33 157 | 28 958 | | Total equity | 51 649 | 47 320 | | | | | | Total liabilities and equity | 449 058 | 462 767 |
Inbank is a consumer finance focused digital bank active in the Baltics and Poland with additional deposits accepted in Germany, Austria and the Netherlands. Inbank has over 3,200 active partners and 600,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.
Additional information:
Merit Arva
Inbank AS
Head of Corporate Communications
merit.arva@inbank.ee
+372 553 3550
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