In Q3 2021 Inbank earned a consolidated net profit of 3.7 million euros, increasing 153% year-on-year. The net profit in the first nine months of 2021 was 8 million euros, which is 92% more than the year before. The return on equity in Q3 was 21.5%.
- Inbank’s loan portfolio increased by 45% compared to Q3 2020 reaching 543 million euros. The deposit portfolio grew 66% and reached 599 million euros by the end of Q3.
- Total sales for Q3 was 135 million euros increasing 57% year-on-year. Growth was once again driven by the Polish business unit that contributed 62 million euros to total sales, 106% more than a year ago.
- In terms of product segments, sales finance grew 48% year-on-year to 95 million euros, amounting to 70% of total sales. Personal loans increased by 137% to 15 million euros, while car financing increased in sales volume by 59% to 25 million euros.
- By the end of Q3, the number of active contracts reached 743,000 growing 11% year-on-year.
Priit Põldoja, Chairman of the Management Board, comments on the results:
In the third quarter, Inbank continued solid growth in terms of loan volumes and profits. Our quarterly sales of credit products amounted to 135 million euros, which is 10 million more than the previous peak in the second quarter of 2021. We also grew our profits by 2,5 times.
Growth continued to be driven by the Polish business unit, where sales volumes more than doubled compared to a year ago. Success in Poland has encouraged Inbank to look for new markets, as a result, we decided to expand operations into the Czech market, where we expect to start business at the end of the second quarter of 2022.
Inbank also made an investment to acquire a 30% stake in Paywerk, a cross-border pay later fintech. Inbank has a number of synergies with the new start-up that can support the bank’s future growth in existing and, above all, new European markets.
The third quarter of 2021 is characterised by record-low loan losses. This is due to the increased share of solar panel financing and car leasing, as well as customers’ better than expected payment behaviour. Decrease in overdues was impacted by the Estonian pension reform, as a result of which the overdue contracts of Estonian customers decreased by half.
For the first time in the past year, strong sales growth has been accompanied by considerably improved financial results. Inbank’s business model is trending towards lower margins and risk, while continuing to be rapidly growing and profitable. We expect the strong growth in volumes and profit to continue into the next quarter and next year.
Key financial indicators 30.09.2021
Total assets EUR 738.5 million
Loan portfolio EUR 543.2 million
Deposit portfolio EUR 599.0 million
Total equity EUR 70 million
Net profit EUR 8 million
Return on equity 21.5%
| Consolidated income statement (in thousands of euros) | ||||
| In thousands of euros | Q3 2021 | Q3 2020 | 9 months 2021 | 9 months 2020 |
| Interest income based on EIR | 12 270 | 10 694 | 34 859 | 31 974 |
| Interest expense | -2 585 | -1 969 | -6 992 | -5 910 |
| Net interest income | 9 685 | 8 725 | 27 867 | 26 064 |
| Fee income | 604 | 254 | 1 539 | 811 |
| Fee expense | -735 | -546 | -2 307 | -1 548 |
| Net fee and commission income | -131 | -292 | -768 | -737 |
| Other operating income | 5 008 | 107 | 13 561 | 469 |
| Other operating expense | -3 681 | 0 | -9 994 | 0 |
| Total net interest, fee and other income and expenses | 10 881 | 8 540 | 30 666 | 25 796 |
| Personnel expenses | -2 947 | -2 152 | -8 530 | -7 008 |
| Marketing expenses | -626 | -301 | -1 826 | -1 001 |
| Administrative expenses | -1 367 | -962 | -4 309 | -3 061 |
| Depreciations, amortisation | -876 | -606 | -2 421 | -1 627 |
| Total operating expenses | -5 816 | -4 021 | -17 086 | -12 697 |
| Profit before profit from associates and impairment losses on loans | 5 065 | 4 519 | 13 580 | 13 099 |
| Share of profit from subsidiaries and associates | 6 | 76 | 263 | 668 |
| Impairment losses on loans and advances | -1 251 | -3 070 | -4 997 | -9 229 |
| Profit before income tax | 3 820 | 1 525 | 8 846 | 4 538 |
| Income tax | -145 | -74 | -820 | -350 |
| Profit for the period | 3 675 | 1 451 | 8 026 | 4 188 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -160 | -119 | -101 | -195 |
| Total comprehensive income for the period | 3 515 | 1 332 | 7 925 | 3 993 |
| Consolidated statement of financial position (in thousands of euros) | |||
| 30.09.2021 | 31.12.2020 | ||
| Assets | |||
| Due from central banks | 99 112 | 27 445 | |
| Due from credit institutions | 11 744 | 19 784 | |
| Investments in debt securities | 7 118 | 13 618 | |
| Loans and advances | 543 206 | 402 212 | |
| Investments in associates | 4 792 | 4 026 | |
| Tangible assets | 16 426 | 833 | |
| Right of use asset | 25 776 | 1 157 | |
| Intangible assets | 21 521 | 16 139 | |
| Other financial assets | 1 317 | 1 350 | |
| Other assets | 5 078 | 1 297 | |
| Deferred tax asset | 2 381 | 2 170 | |
| Total assets | 738 471 | 490 031 | |
| Liabilities | |||
| Customer deposits | 599 007 | 391 341 | |
| Other financial liabilities | 45 508 | 12 218 | |
| Current Income tax liability | 788 | 864 | |
| Deferred income tax liability | 72 | 0 | |
| Other liabilities | 5 546 | 2 810 | |
| Debt securities issued | 0 | 4 010 | |
| Subordinated debt securities | 17 591 | 17 563 | |
| Total liabilities | 668 512 | 428 806 | |
| Equity | |||
| Share capital | 970 | 961 | |
| Share premium | 24 463 | 23 865 | |
| Statutory reserve capital | 96 | 90 | |
| Other reserves | 1 539 | 1 438 | |
| Retained earnings | 42 891 | 34 871 | |
| Total equity | 69 959 | 61 225 | |
| Total liabilities and equity | 738 471 | 490 031 | |
Inbank is a consumer finance focused digital bank active in the Baltics, Poland, and the Czech Republic with additional deposits accepted in Germany, Austria, the Netherlands, and Finland. Inbank has over 4,500 active partners and 743,000 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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