Interim report in English has been attached.
In Q3 2024 Inbank earned a consolidated net profit of 3.1 million euros, increasing 7% year-on-year. Profit for the first nine months of 2024 reached 10.8 million euros, marking a 46% increase compared to the previous year. The return on equity (ROE) in Q3 stood at 8.8% and for the first nine months of the year 10.9%.
- Loan and rental portfolio increased by 14.2% year-on-year, reaching 1.11 billion euros. The deposit portfolio grew by 14% compared to a year ago, totaling 1.16 billion euros. At the end of Q3, Inbank’s total assets stood at 1.43 billion euros.
- The Gross Merchandise Value (GMV) for the third quarter reached a record 184 million euros, which is 4% higher than the previous quarter and 1% compared to the previous year. Net interest income grew by 25% compared to last year, reflecting a strong underlying performance.
- Auto marketplaces and dealers portfolio, now Inbank’s largest segment, increased in the third quarter by 42% year-on-year reaching 64 million euros of GMV.
- All other product segments maintained similar GMV in the third quarter compared to last year, except for merchant solutions sales which decreased by 15% compared to last year, amounting to 61 million euros of GMV due to strategic repricing efforts in Poland and Lithuania.
- Inbank’s retail portfolio Effective Interest Rate (EIR) continued to improve and reached in Q3 11.21% which is 0.41% higher than a year ago, driven by repricing efforts over the past two years.
- In Q3, impairment losses were 1.5% of the loan portfolio. For the first nine months, the ratio stood at 1.5%, which is below Inbank’s long-term average.
- By the end of Q3, Inbank had 881,000 active contracts and 6,200 active merchant partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
“During the third quarter, Inbank continued to deliver strong results and steady revenue growth. Inbank’s net interest income grew by 25% and total net income grew by 16% for the quarter compared to last year. Our Q3 revenue was negatively impacted by a 1.2 million euro fair value adjustment on financial instruments used to manage interest rate risks. During the first two quarters of the year, the company made a fair value gain on the same instruments.
Auto marketplaces and dealers financing continued to show very strong results during the third quarter, reaching 64 million euros of GMV, which is 42% more than a year ago, becoming now Inbank’s largest segment in terms of sales and portfolio. Sales results were stable across product segments showing similar sales volumes compared to last year.
To support Inbank’s growth plans, Inbank raised 10.14 million euros of equity in August. The lead investor was Swedbank pension funds, and the round was supported by 52 investors in total.
During the quarter, Inbank sold its 21% stake in financial technology start-up Paywerk to Swedbank AB. This transaction resulted in 0.7 million euros of extraordinary profit for the quarter. While Paywerk did not succeed as a stand-alone company, we are excited to see that the technology our team developed is valued by a leading regional retail bank.
During the third quarter, we launched the Smart Rent service for renting Apple products in iDeal stores in Lithuania, making the service now available in all three Baltic countries. We also started cooperation with the largest electronics retailer Datart in Czechia.
Inbank’s financial performance has continued to improve throughout 2024. Although sudden changes in interest expectations resulted in weaker Q3 results, the current decline in the interest rate environment is expected to benefit our financial performance going forward. The superiority of our embedded finance solutions coupled with the declining interest rate environment will greatly support Inbank’s growth ambitions in the upcoming quarters and years.”
Key financial indicators as of 30.09.2024 and for Q3
Total assets EUR 1.43 billion
Loan and rental portfolio EUR 1.11 billion
Deposit portfolio EUR 1.16 billion
Equity EUR 146.2 million
Net profit EUR 3.1 million
Return on equity 8.8%
| Consolidated income statement (in thousands of euros) | ||||
| Q3 2024 | Q3 2024* restated | 9 months 2024 | 9 months 2023 restated | |
| Interest income based on EIR | 30,870 | 26,014 | 88,946 | 71,474 |
| Interest expense | -13,603 | -12,164 | -40,287 | -32,490 |
| Net interest income | 17,267 | 13,850 | 48,659 | 38,984 |
| Fee and commission income | 98 | 118 | 315 | 359 |
| Fee and commission expenses | -1,268 | -1,066 | -3,637 | -3,062 |
| Net fee and commission income/expenses | -1,170 | -948 | -3,322 | -2,703 |
| Income from rental services | 8,123 | 6,275 | 23,431 | 17,036 |
| Sale of assets previously rented to customers | 3,992 | 3,755 | 12,114 | 10,584 |
| Other operating income | 328 | 191 | 804 | 549 |
| Cost of rental services | -5,252 | -4,063 | -15,378 | -11,088 |
| Cost of assets sold previously rented to customers | -3,949 | -3,059 | -11,685 | -9,253 |
| Net operating income/expenses | 3,242 | 3,099 | 9,286 | 7,828 |
| Net gains/losses from financial assets measured at fair value | -1,372 | 110 | -177 | 76 |
| Foreign exchange rate gain/losses | 164 | -501 | 382 | -213 |
| Net gain/losses from financial items | -1,208 | -391 | 205 | -137 |
| Total net interest, fee and other income and expenses | 18,131 | 15,610 | 54,828 | 43,972 |
| Personnel expenses | -5,033 | -3,981 | -14,726 | -12,152 |
| Marketing expenses | -849 | -753 | -2,186 | -2,418 |
| Administrative expenses | -3,259 | -2,955 | -9,284 | -8,073 |
| Depreciations, amortization | -1,932 | -1,629 | -5,706 | -4,601 |
| Total operating expenses | -11,073 | -9,318 | -31,902 | -27,244 |
| Share of profit from associates | 663 | -72 | 663 | 322 |
| Impairment losses on loans and receivables | -3,832 | -3,354 | -11,158 | -9,968 |
| Profit before income tax | 3,889 | 2,866 | 12,431 | 7,082 |
| Income tax | -796 | 34 | -1,597 | 344 |
| Profit for the period | 3,093 | 2,900 | 10,834 | 7,426 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -15 | 324 | -272 | -12 |
| Total comprehensive income for the period | 3,078 | 3,224 | 10,562 | 7,414 |
| Consolidated statement of financial position (in thousands of euros) | |||
| 9/30/24 | 12/31/23 | 30.09.2023 restated | |
| Assets | |||
| Cash and cash equivalents | 192,998 | 172,921 | 150,701 |
| Mandatory reserves at central banks | 23,910 | 21,020 | 18,593 |
| Investments in debt securities | 35,236 | 33,581 | 31,164 |
| Financial assets measured at fair value through profit or loss | 15 | 79 | 119 |
| Loans and receivables | 1,021,059 | 942,056 | 895,610 |
| Investments in associates | 0 | 141 | 213 |
| Other financial assets | 3,512 | 5,268 | 2,958 |
| Tangible assets | 84,064 | 75,206 | 67,458 |
| Right of use assets | 21,603 | 26,716 | 24,810 |
| Intangible assets | 32,081 | 30,906 | 29,263 |
| Other assets | 8,876 | 8,185 | 10,974 |
| Deferred tax assets | 4,758 | 4,505 | 4,066 |
| Total assets | 1,428,112 | 1,320,584 | 1,235,929 |
| Liabilities | |||
| Customer deposits | 1,164,182 | 1,081,566 | 1,021,106 |
| Financial liabilities measured at fair value through profit or loss | 374 | 50 | 6 |
| Other financial liabilities | 60,086 | 60,927 | 59,488 |
| Current tax liability | 696 | 311 | 138 |
| Deferred tax liability | 482 | 204 | 203 |
| Other liabilities | 4,075 | 3,691 | 3,412 |
| Subordinated debt securities | 52,028 | 49,745 | 41,708 |
| Total liabilities | 1,281,923 | 1,196,494 | 1,126,061 |
| Equity | |||
| Share capital | 1,152 | 1,086 | 1,026 |
| Share premium | 54,656 | 43,563 | 31,855 |
| Statutory reserve | 109 | 103 | 103 |
| Other reserves | 1,344 | 1,543 | 1,865 |
| Retained earnings | 88,928 | 77,795 | 75,019 |
| Total equity | 146,189 | 124,090 | 109,868 |
| Total liabilities and equity | 1,428,112 | 1,320,584 | 1,235,929 |
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 6,200 merchants, Inbank has 881,000+ active contracts and collects deposits across 7 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Merit Arva
Inbank AS
Head of Brand and Communications
merit.arva@inbank.ee
+372 553 3550
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