In Q4, Inbank’s profit was impacted the most by changes in Latvian Income Tax Act, which required the write-off of the Latvian company’s income tax assets. This resulted in an extraordinary loss in amount of 389 thousand euros.
In 2017, sales volumes for all bank products saw significant growth. Inbank’s loan portfolio increased by 7.5% in Q4, reaching 92.9 million euros by the end of the quarter. Over the year, the loan portfolio grew 43,3% per cent – 28.1 million euros in absolute terms.
Inbank’s deposits portfolio increased by 21.4% in Q4, reaching 95.1 million euros by the end of the quarter. Over the year, the deposits portfolio grew 47.2 per cent – 30.5 million euros in absolute terms. The strong growth of the portfolio was supported by a campaign held toward the end of the year, which allowed customers to receive – immediately and tax-free – interest on deposits opened before 2018.
According to the chairman of Inbank’s management board, Jan Andresoo, all of the bank’s product lines in Estonia posted a good sales performance. “Overall for the year, we were able to grow our hire-purchase volumes by 12.3 per cent compared to last year, which is a very strong result given the maturity of the product. Sales of loans grew a whopping 147.7 per cent compared to the previous year.”
Inbank’s strong growth is also illustrated by statistics from the Bank of Estonia. Among banks, Inbank is now second only to Swedbank as a provider of consumer loans, holding a 26 percent share of the market for unsecured consumer loans last year.
In Poland, Inbank started sales activity through a partner channel in Q4. “We currently offer financing of monthly payments on insurance products for both Rankomat and ASF customers. It’s a new and innovative solution on the Polish market and could potentially become a very attractive market niche. A number of interesting negotiations with potential new partners are now under way,” said Andresoo.
In the last quarter, Inbank’s Latvian subsidiary showed a positive dynamic – after a change of strategy, they have turned their business volumes toward growth once again. “We have gained a number of new partners in the field of hire-purchase. Our own online banking interface has become Inbank’s biggest sales channel in Latvia in terms of loan volumes,” Andresoo said.
Key financial indicators as at 31 December 2017
- Total assets 126 million euros
- Loan portfolio 92.9 million euros
- Deposits volume 95.1 million euros
- Net profit 7.5 million euros
- Equity 22 million euros
- Net return on equity 44.1%
Condensed consolidated statement of profit and loss and other comprehensive income
| EURt | |||||
| Q4 2017 | 12 months 2017 | Q4 2016 | 12 months 2016 | ||
| Continuing operations | |||||
| Interest income | 3 645 | 13 023 | 2 886 | 9 788 | |
| Interest expense | -537 | -2 009 | -473 | -1 404 | |
| Net interest income | 3 108 | 11 014 | 2 413 | 8 384 | |
| Fee income | 153 | 551 | 119 | 394 | |
| Fee expense | -168 | -607 | -85 | -334 | |
| Net fee and commission income | -15 | -56 | 34 | 60 | |
| Other operating income | 162 | 705 | 188 | 776 | |
| Total net interest, fee and other income | 3 255 | 11 663 | 2 635 | 9 220 | |
| Staff costs | -1 089 | -3 997 | -682 | -2 461 | |
| Marketing expenses | -249 | -929 | -174 | -566 | |
| Administrative expenses | -457 | -1 602 | -383 | -1 014 | |
| Depreciations, amortisation | -58 | -215 | -39 | -174 | |
| Total operating expenses | -1 853 | -6 743 | -1 278 | -4 215 | |
| Profit before impairment losses on loans | 1 402 | 4 920 | 1 357 | 5 005 | |
| Share of profit from affiliates | 15 | 6 203 | 261 | 773 | |
| Impairment losses on loans | -877 | -3 532 | -716 | -3 219 | |
| Profit before income tax | 540 | 7 591 | 902 | 2 559 | |
| Deferred income tax | -313 | -92 | 34 | 57 | |
| Net profit for the reporting period | 227 | 7 499 | 936 | 2 616 | |
| Other comprehensive income/loss | |||||
| Items that may be reclassified subsequently to profit or loss | |||||
| Unrealised foreign exchange gains/losses | -44 | -38 | 2 | 2 | |
| Total comprehensive income for the reporting period | 183 | 7 461 | 938 | 2 618 | |
| Profit is attributable to | |||||
| Owners of the parent | 225 | 7 496 | 934 | 2 646 | |
| Non-controlling interest | 2 | 3 | 2 | -30 | |
| Profit for the reporting period | 227 | 7 499 | 936 | 2 616 | |
| Total comprehensive income/loss is attributable to | |||||
| Owners of the parent | 181 | 7 458 | 937 | 2 649 | |
| Non-controlling interest | 2 | 3 | 1 | -31 | |
| Total comprehensive income for the reporting period | 183 | 7 461 | 938 | 2 618 |
Condensed consolidated statement of financial position
| EURt | ||
| 31.12.2017 | 31.12.2016 | |
| Assets | ||
| Cash in hand | 4 | 4 |
| Due from central banks, including mandatory reserve | 14 767 | 14 680 |
| Due from credit institutions | 8 530 | 1 956 |
| Loans to and receivables from customers | 92 895 | 64 839 |
| Investments in affiliates | 7 806 | 1 |
| Tangible assets | 279 | 183 |
| Intangible assets | 816 | 902 |
| Other financial assets | 61 | 43 |
| Other assets | 459 | 214 |
| Deferred tax assets | 364 | 449 |
| Assets held for sale | 0 | 1 672 |
| Total assets | 125 981 | 84 943 |
| Customer deposits | 95 056 | 64 587 |
| Other financial liabilities | 1 263 | 1 034 |
| Other liabilities | 1 136 | 722 |
| Income tax liability | 0 | 321 |
| Subordinated debt securities | 6 480 | 6 475 |
| Total liabilities | 103 935 | 73 139 |
| Equity | ||
| Share capital | 782 | 689 |
| Share premium | 9 068 | 6 361 |
| Statutory reserve capital | 79 | 57 |
| Other reserves | 1 352 | 1 361 |
| Retained earnings | 10 739 | 3 330 |
| Total equity attributable to the shareholders of parent company | 22 020 | 11 798 |
| Non-controlling interest | 26 | 6 |
| Total equity | 22 046 | 11 804 |
| Total liabilities and equity | 125 981 | 84 943 |
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
