In Q2, Inbank sold its affiliates Krediidipank Finants AS and Coop Finants AS to Eesti Krediidipank, which will start operating under the name of Coop Pank in autumn. Inbank’s holding in both companies before the transaction was 49%. Inbank earned a one-off profit in the amount of 4.81 million euros from the transactions. The holding of Inbank in Eesti Krediidipank after the transactions is 17.9 per cent.
According to the CEO of Inbank Jan Andresoo, the quarter was characterised by the start of several new partnerships. “We launched international cooperation with the innovative mobile bank N26 via our Raisin deposit platform in order to offer good depositing opportunities to their clients,” he said. “In the area of hire purchase, we started a partnership with Samsung Electronics Baltics. In the area of loans, we developed our cooperation with several good partners such as Bauhof, 1A.EE and Hansapost, where we now offer small loans in addition to hire purchase.”
Inbank’s sales in the first six months of 2017 amounted to 33.4 million euros: 28.5 million in Estonia, 3.2 million in Latvia and 1.6 million in Poland. The increase in the sales of loans in Estonia deserves a separate mention, as it increased by 35.6 per cent year-on-year.
Business volumes also increased in the Polish branch, which started operating at the start of the year. According to Andresoo, the second quarter was like a test period for the branch in order to assess the quality of the primary credit decisions and the functioning of channels and IT processes. “The people in Poland also worked hard to start the partner-based business, which is the cornerstone of the international strategy of Inbank,” he said. “I have to say that we have found very interesting business opportunities so far and hope to be able to say more about them in the near future.”
Several changes in the staff of Inbank took place in Q2. Priit Piile, the former Technical Director of Inbank’s affiliate Maksekeskus AS, started working as the Technology Director at Inbank. He will be responsible for coordinating IT development across the group. Girts Ledins, who has a lot of management experience in the area of finance, became the new CEO of Inbank’s Latvian company Inbank Lizings SIA in May.
Important financial indicators as at 30 June 2017
- Balance sheet total 102.9 million euros
- Loan portfolio 77.4 million euros
- Deposits 74.3 million euros
- Consolidated profit 5.69 million euros
- Equity 20.3 million euros
Inbank's interim report is currently available only in Estonian. The English version will be published on Inbank's web page www.inbank.ee shortly.
Consolidated statement of comprehensive income (abbreviated)
| EURt | ||||
| Q2 2017 | 6 months 2017 | Q2 2016 | 6 months 2016 | |
| Continuing operations | ||||
| Interest income | 3 061 | 5 996 | 2 345 | 4 161 |
| Interest expenses | -492 | -976 | -301 | -559 |
| Net interest income | 2 569 | 5 020 | 2 044 | 3 602 |
| Fee and commission income | 204 | 396 | 141 | 261 |
| Fee and commission expense | -144 | -284 | -81 | -153 |
| Net fee and commission income | 60 | 112 | 60 | 108 |
| Other income related to operations | 104 | 253 | 142 | 313 |
| Total income | 2 733 | 5 385 | 2 246 | 4 023 |
| Personnel costs | -994 | -1 879 | -580 | -1 080 |
| Marketing expenses | -380 | -488 | -143 | -231 |
| Administrative expenses | -354 | -708 | -266 | -417 |
| Depreciations, amortisation | -55 | -104 | -47 | -91 |
| Total operating expenses | -1 783 | -3 179 | -1 036 | -1 819 |
| Operating profit | 950 | 2 206 | 1 210 | 2 204 |
| Profit from affiliates | 4 797 | 5 065 | 96 | 273 |
| Credit losses | -805 | -1 731 | -943 | -1 402 |
| Profit before income tax | 4 942 | 5 540 | 363 | 1 075 |
| Deferred income tax | 93 | 151 | 15 | 17 |
| Net income | 5 035 | 5 691 | 378 | 1 092 |
| Other comprehensive income / (loss) | ||||
| Items that may be reclassified subsequently to profit or loss | ||||
| Unrealised foreign exchange gains/losses | 3 | -13 | 0 | 0 |
| Total comprehensive income for the year | 5 038 | 5 678 | 378 | 1 092 |
| Profit is attributable to: | ||||
| Owners of the Bank | 5 050 | 5 718 | 401 | 1 113 |
| Non-controlling interest | -16 | -28 | -23 | -21 |
| Profit for the year | 5 034 | 5 690 | 378 | 1 092 |
| Total comprehensive income/(loss) is attributable to: | ||||
| Owners of the Bank | 5 054 | 5 706 | 401 | 1 113 |
| Non-controlling interest | -16 | -28 | -23 | -21 |
| Total comprehensive income | 5 038 | 5 678 | 378 | 1 092 |
Consolidated statement of financial position
| EURt | ||
| 30.06.2017 | 31.12.2016 | |
| Assets | ||
| Cash in hand | 4 | 4 |
| Due from central banks, reserve requirement | 13 937 | 14 680 |
| Due from credit institutions | 2 308 | 1 956 |
| Loans and receivables from customers | 77 439 | 64 839 |
| Investments in affiliates | 7 013 | 1 |
| Tangible assets | 228 | 183 |
| Intangible assets | 980 | 902 |
| Other financial assets | 41 | 43 |
| Other assets | 234 | 214 |
| Deferred income tax asset | 806 | 449 |
| Assets held for sale | 0 | 1 672 |
| Total assets | 102 990 | 84 943 |
| Customer deposits | 74 345 | 64 587 |
| Other financial liabilities | 1 009 | 1 034 |
| Other liabilities | 882 | 722 |
| Income tax liability | 0 | 321 |
| Subordinated debt securities | 6 477 | 6 475 |
| Total liabilities | 82 713 | 73 139 |
| Equity | ||
| Share capital | 782 | 689 |
| Share premium | 9 068 | 6 361 |
| Mandatory reserve | 57 | 57 |
| Other reserves | 1 363 | 1 361 |
| Retained earnings | 8 983 | 3 330 |
| Total equity attributable to the shareholders of parent company | 20 253 | 11 798 |
| Non-controlling interest | 24 | 6 |
| Total equity | 20 277 | 11 804 |
| Total liabilities and equity | 102 990 | 84 943 |
The reports of Inbank are accessible online at https://www.inbank.ee/en/inside/investor/reports/.
Inbank, which started operating as a bank in 2015, offers services via its internet bank and a partner network. Inbank operates on the consumer financing markets of Estonia, Latvia and Poland. Inbank also receives international deposits from the German and Austrian markets.
Kristin Pihu
Inbank AS
Marketing and Communication Specialist
+327 5348 2436
kristin.pihu@inbank.ee
