In Q2 2024 Inbank earned a consolidated net profit of 3.8 million euros increasing 41% year-on-year. The 2024 half-year net profit was 7.7 million euros, which is 71% more than a year ago. The return on equity in Q2 was 11.6%.
- Loan and rental portfolio increased by 15% year-on-year reaching 1.08 billion euros. The deposit portfolio grew by 22% compared to a year ago, totaling 1.18 billion euros. At the end of Q2, Inbank’s total assets stood at 1.42 billion euros.
- The Gross Merchandise Value (GMV) for the second quarter was 178 million euros, which is 3% less than a year ago, but 10% more than in the previous quarter.
- Merchant solutions remained the largest segment, with Q2 GMV of 65 million euros. In terms of product segments, car finance showed strong results with 56 million euros of GMV, which is 32% more than a year ago. The GMV of green finance decreased by 19% compared to a year ago and was 23 million euros. Direct lending sales decreased by 10%, to 22.2 million euros and rental services decreased by 19%, to 12 million euros.
- In Q2, impairment losses were 1.7% of the loan portfolio, for the first 6 months, the ratio was 1.5%.
- By the end of Q2, Inbank had 895,000 active contracts and 6,100 active merchant partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
'During the second quarter of 2024, Inbank’s financial performance continued to improve steadily. On the back of declining funding costs and increasing portfolio yield, Inbank’s net income grew by 29% compared to the same quarter a year ago, while operating expenses grew by 17% during the same period. As a result, Inbank’s quarterly net profit was 3.8 million euros which is 41% higher than a year ago.
Sales results were stable in the Baltics and decreased slightly in Poland. Sales in Czechia have more than doubled compared to a year ago and quarterly GMV was above 10 million euros for the first time.
Considering our consistent repricing efforts in all markets over the last 18 months, we are very happy with our sales results, and this is a testament to our product superiority.
For the first 6 months of the year, Inbank’s impairment loss ratio was 1.5%. We expect our credit cost to remain within our target of 1.6%, as employment has remained strong and inflation is pulling back in all our markets.
Over the last 10 quarters, Inbank has managed to navigate a challenging macro environment by demonstrating discipline in repricing our products and focusing on operational efficiency. Margins have started to improve, and the cost-income ratio is starting to move towards 50%. At the same time, we are investing in our growth in the Czech market and will continue to bring our innovative electronics rental product to all Inbank markets by the end of 2024.
Managing this balancing act of delivering improving financial results while continuing to invest in our long-term competitiveness has been the focus of the Inbank management team over the last 18 months. While remaining cautious and disciplined, we are gearing up our organization to capture more growth opportunities in the second half of 2024 and beyond.'
Key financial indicators as of 30.06.2024 and for Q2
Total assets EUR 1.42 billion
Loan and rental portfolio EUR 1.08 billion
Deposit portfolio EUR 1.18 billion
Equity EUR 133.1 million
Net profit EUR 3.8 million
Return on equity 11.6%
| Consolidated income statement (in thousands of euros) | ||||
| Q2 2024 | Q2 2023 restated | 6 months 2024 | 6 months 2023 restated | |
| Interest income based on EIR | 29 308 | 23 957 | 58 076 | 45 460 |
| Interest expense | -13 072 | -10 947 | -26 684 | -20 326 |
| Net interest income | 16 236 | 13 010 | 31 392 | 25 134 |
| Fee and commission income | 106 | 118 | 217 | 241 |
| Fee and commission expenses | -1 183 | -1 058 | -2 369 | -1 996 |
| Net fee and commission income/expenses | -1 077 | -940 | -2 152 | -1 755 |
| Income from rental services | 8 159 | 5 524 | 15 308 | 10 761 |
| Sale of assets previously rented to customers | 3 539 | 3 915 | 8 122 | 6 829 |
| Other operating income | 137 | 262 | 476 | 358 |
| Cost of rental services | -5 337 | -3 517 | -10 126 | -7 025 |
| Cost of assets sold previously rented to customers | -3 386 | -3 611 | -7 736 | -6 194 |
| Net operating income/expenses | 3 112 | 2 573 | 6 044 | 4 729 |
| Net gains/losses from financial assets measured at fair value | 305 | 23 | 1 195 | -34 |
| Foreign exchange rate gain/losses | 557 | 205 | 218 | 288 |
| Net gain/losses from financial items | 862 | 228 | 1 413 | 254 |
| Total net interest, fee and other income and expenses | 19 133 | 14 871 | 36 697 | 28 362 |
| Personnel expenses | -4 922 | -4 134 | -9 693 | -8 171 |
| Marketing expenses | -704 | -867 | -1 337 | -1 665 |
| Administrative expenses | -3 187 | -2 711 | -6 025 | -5 118 |
| Depreciations, amortization | -2 018 | -1 578 | -3 774 | -2 972 |
| Total operating expenses | -10 831 | -9 290 | -20 829 | -17 926 |
| Share of profit from associates | 0 | 361 | 0 | 394 |
| Impairment losses on loans and receivables | -4 127 | -3 485 | -7 326 | -6 614 |
| Profit before income tax | 4 175 | 2 457 | 8 542 | 4 216 |
| Income tax | -398 | 218 | -801 | 310 |
| Profit for the period | 3 777 | 2 675 | 7 741 | 4 526 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -277 | -291 | -257 | -336 |
| Total comprehensive income for the period | 3 500 | 2 384 | 7 484 | 4 190 |
| Consolidated statement of financial position (in thousands of euros) | |||
| 30.06.2024 | 31.12.2023 | 30.06.2023 restated | |
| Assets | |||
| Cash and cash equivalents | 234 457 | 172 921 | 117 593 |
| Mandatory reserves at central banks | 22 257 | 21 020 | 18 401 |
| Investments in debt securities | 25 767 | 33 581 | 31 269 |
| Financial assets measured at fair value through profit or loss | 1 045 | 79 | 7 |
| Loans and receivables | 988 939 | 942 056 | 873 513 |
| Investments in associates | 205 | 141 | 209 |
| Other financial assets | 2 441 | 5 268 | 5 113 |
| Tangible assets | 81 001 | 75 206 | 62 536 |
| Right of use assets | 23 479 | 26 716 | 22 345 |
| Intangible assets | 31 915 | 30 906 | 28 318 |
| Other assets | 8 304 | 8 185 | 10 504 |
| Deferred tax assets | 4 747 | 4 505 | 3 973 |
| Total assets | 1 424 557 | 1 320 584 | 1 173 781 |
| Liabilities | |||
| Customer deposits | 1 175 569 | 1 081 566 | 965 692 |
| Financial liabilities measured at fair value through profit or loss | 31 | 50 | 4 |
| Other financial liabilities | 58 870 | 60 927 | 56 114 |
| Current tax liability | 686 | 311 | 0 |
| Deferred tax liability | 374 | 204 | 103 |
| Other liabilities | 3 923 | 3 691 | 3 583 |
| Subordinated debt securities | 52 010 | 49 745 | 41 799 |
| Total liabilities | 1 291 463 | 1 196 494 | 1 067 295 |
| Equity | |||
| Share capital | 1 096 | 1 086 | 1 026 |
| Share premium | 44 804 | 43 563 | 31 855 |
| Statutory reserve | 103 | 103 | 103 |
| Other reserves | 1 250 | 1 543 | 1 384 |
| Retained earnings | 85 841 | 77 795 | 72 118 |
| Total equity | 133 094 | 124 090 | 106 486 |
| Total liabilities and equity | 1 424 557 | 1 320 584 | 1 173 781 |
Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with 6,100 merchants, Inbank has 895,000+ active contracts and collects deposits across 7 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Merit Arva
Head of Communications
merit.arva@inbank.ee
+372 553 3550
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