In Q2 2022 Inbank earned a net profit of 2.6 million euros, increasing 45% year-on-year. The 2022 half-year net profit was 5.6 million euros, which is 28% more than the year before. The return on equity in Q2 was 12.5%.
- Inbank’s loan portfolio increased by 37% compared to Q2 2021 reaching 674 million euros. The deposit portfolio grew by 36% and reached 709 million euros by the end of Q2.
- Total sales for Q2 was 129 million euros increasing 4% year-on-year. In terms of product segments, sales finance decreased 15% year-on-year to 76 million euros, amounting to 58% of total sales. Personal loans increased by 56% to 23 million euros, while car financing increased in sales volume by 44% to 31 million euros.
- On 1 July Inbank completed the sale of its 29.8% stake in Maksekeskus which will result in 11.5 million euros of extraordinary profit in the third quarter.
- By the end of Q2, Inbank had 823,000 active customer contracts and over 5,100 active merchant partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
“For the tenth consecutive quarter, Inbank is operating in a rather unclear environment. At the same time, our business volumes continue to reach new records. We sold credit products worth 129.6 million euros and made a profit of 2.6 million euros. In the first half of the year, Inbank earned 5.6 million euros in net profit.
While in the past two years, Inbank’s growth was driven by the Polish market, the Baltic countries were once again the bank’s growth engine in the past quarter. The main reason for the change is the rise in interest rates to 7% in the Polish market. Higher interest rates and rise in the cost of living have clearly reduced growth volumes in Poland. We are glad to see that Inbank’s diversified business model is working well and the decline in growth in Poland was compensated by record sales in the Baltics.
Navigating a complex environment has been part of Inbank’s growth story. Our success has been driven mainly by product development, investments in technology, and growth in new markets. Many of these investments have proven to be fruitful. We have done the same this time. On 1 July, the sale of Inbank’s 29.8% stake in Maksekeskus was finalised. As a result, Inbank will earn an extraordinary profit of 11.5 million euros in the third quarter. The capital earned from the sale of Maksekeskus will serve Inbank as a good buffer to cope in a more complex environment.
Also, in June Inbank was approved by the Czech National Bank to provide financial services in the Czech Republic. Already in July, Inbank signed its first sales finance contract there which lays the foundation for Inbank’s growth in yet another European market.”
Key financial indicators for 30.06.2022 and Q2
Total assets EUR 876 million
Loan portfolio EUR 674 million
Deposit portfolio EUR 709 million
Total equity EUR 84.7 million
Net profit EUR 2.61 million
Return on equity 12.5%
| Consolidated income statement (in thousands of euros)* | ||||
| Q2 2022 | Q2 2021 | 6 months 2022 | 6 months 2021 | |
| Interest income based on EIR | 14 937 | 11 473 | 28 758 | 22 589 |
| Interest expense | -3 817 | -2 264 | -6 764 | -4 407 |
| Net interest income | 11 120 | 9 209 | 21 994 | 18 182 |
| Fee income | 826 | 486 | 1 531 | 935 |
| Fee expense | -789 | -783 | -1 591 | -1 572 |
| Net fee and commission income | 37 | -297 | -60 | -637 |
| Net gains from financial assets measured at fair value | 342 | 0 | 158 | 0 |
| Foreign exchange rate gains/losses | -226 | -191 | -253 | -131 |
| Net gains/losses from financial items | 116 | -191 | -95 | -131 |
| Other operating income | 6 437 | 5 031 | 12 096 | 8 553 |
| Other operating expense | -4 614 | -3 707 | -8 488 | -6 428 |
| Total net interest, fee and other income | 13 096 | 10 045 | 25 447 | 19 539 |
| Personnel expenses | -3 476 | -2 832 | -6 748 | -5 583 |
| Marketing expenses | -783 | -657 | -1 346 | -1 200 |
| Administrative expenses | -2 071 | -1 582 | -3 859 | -2 696 |
| Depreciations, amortisation | -1 094 | -805 | -2 103 | -1 545 |
| Total operating expenses | -7 424 | -5 876 | -14 056 | -11 024 |
| Profit before profit from associates and impairment losses on loans | 5 672 | 4 169 | 11 391 | 8 515 |
| Share of profit from subsidiaries and associates | -82 | -79 | -140 | 257 |
| Impairment losses on loans and advances | -3 087 | -1 941 | -5 660 | -3 746 |
| Profit before income tax | 2 503 | 2 149 | 5 591 | 5 026 |
| Income tax | 108 | -344 | -39 | -675 |
| Profit for the period | 2 611 | 1 805 | 5 552 | 4 351 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -61 | 185 | 35 | 59 |
| Total comprehensive income for the period | 2 550 | 1 990 | 5 587 | 4 410 |
| Consolidated statement of financial position (in thousands of euros) | |||
| 30.06.2022 | 31.12.2021 | 30.06.2021 | |
| Assets | |||
| Due from central banks | 79 484 | 77 453 | 64 123 |
| Due from credit institutions | 13 442 | 17 870 | 18 881 |
| Investments in debt securities | 8 994 | 7 684 | 6 194 |
| Financial assets designated at fair value through profit or loss | 153 | 0 | 0 |
| Loans and advances | 673 566 | 604 848 | 492 211 |
| Investments in associates | 816 | 774 | 4 429 |
| Tangible assets | 34 368 | 19 147 | 12 563 |
| Right of use asset | 25 354 | 25 231 | 27 385 |
| Intangible assets | 24 265 | 22 423 | 21 043 |
| Other financial assets | 2 350 | 2 151 | 1 388 |
| Other assets | 6 690 | 2 769 | 3 326 |
| Deferred tax asset | 2 764 | 2 401 | 2 258 |
| Assets held for sale | 4 203 | 4 203 | 0 |
| Total assets | 876 449 | 786 954 | 653 801 |
| Liabilities | |||
| Customer deposits | 708 727 | 617 857 | 520 907 |
| Other financial liabilities | 49 417 | 49 188 | 45 027 |
| Current tax liability | 95 | 284 | 637 |
| Deferred tax liability | 73 | 125 | 0 |
| Other liabilities | 2 871 | 3 296 | 3 891 |
| Subordinated debt securities | 30 540 | 37 187 | 17 582 |
| Total liabilities | 791 723 | 707 937 | 588 044 |
| Equity | |||
| Share capital | 997 | 997 | 961 |
| Share premium | 30 436 | 30 436 | 23 865 |
| Statutory reserve capital | 100 | 96 | 96 |
| Other reserves | 1 782 | 1 625 | 1 619 |
| Retained earnings | 51 411 | 45 863 | 39 216 |
| Total equity | 84 726 | 79 017 | 65 757 |
| Total liabilities and equity | 876 449 | 786 954 | 653 801 |
*To provide better overview, an adjustment was made in the 31.12.2021 report, which resulted in reclassification of the subsidiary's 100% buyout option expense which is now reflected in the same expense group as the subsidiary's other operating expense. In addition, due to the growth of Polish and Czech business and foreign currency transactions, foreign exchange gains and losses were reclassified from administrative expenses and are reported under "Foreign exchange rate revaluation losses/gains". The effect of the change on the report and the numerical indicators are presented in the table below:
| Q2 2021 | Reclassification | Q2 2021 restated | 6 months 2021 | Reclassification | 6 months 2021 restated | |
| Foreign exchange rate gains/losses | 0 | -191 | -191 | 0 | -131 | -131 |
| Other operating expense | -3 592 | -115 | -3 707 | -6 313 | -115 | -6 428 |
| Administrative expenses | -1 888 | 306 | -1 582 | -2 942 | 246 | -2 696 |
Inbank is a consumer finance focused digital bank active in the Baltics, Poland, and Czechia with additional deposits accepted in Germany, Austria, the Netherlands and Finland. Inbank has over 5,100 active partners and 823,000 active customer contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.
Additional information:
Merit Arva
Inbank AS
Head of Communications
merit.arva@inbank.ee
+372 553 3550
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