In Q1 2024 Inbank earned a consolidated net profit of 4.0 million euros increasing 114% year-on-year. The return on equity in Q1 was 12.6%.
- Inbank’s loan and rental portfolio increased by 23% compared to Q1 2023 reaching 1.05 billion euros. The deposit portfolio grew 29% and reached 1.11 billion euros by the end of Q1. At the end of Q1 2024, Inbank’s total assets stood at 1.34 billion euros.
- The Gross Merchandise Value (GMV) during the first quarter was 162 million euros, which is 5% more than a year ago. In terms of product segments, car finance continued to show especially strong results with 45 million euros of GMV, which is 39% more than a year ago. The GMV of green finance was stable at 20 million euros. All other product segments had slightly lower sales volumes than a year ago. Rental services were 13 million euros, which is a 6% decrease compared to a year ago. Direct lending sales decreased by 4% to 20 million euros and merchant solutions by 6% to 65 million euros.
- By the end of Q1, the number of active contracts reached 896,000. At the end of Q1, Inbank reached 5,800 active partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
“Inbank begins 2024 with a steady improvement in financial performance. Our total net income grew by 30% compared to the same quarter a year ago, while our operating expenses grew by 16%. Impairment losses remained at the same level as a year ago, while loan and rental portfolios grew by 23%.
Sales results were seasonally lower, but on a year-on-year basis quite stable in all markets. GMV in CEE was up 11% with improving sales in Czechia, while Baltic sales remained at 2023 levels on the back of weak macroeconomic conditions.
Despite facing challenging economic conditions over the last two years, our loan impairment losses have remained low. Impairment losses in the first quarter were impressive, standing at 1.35% of the average loan portfolio.
During the first quarter, Inbank started cooperating with Pigu Group, the largest e-commerce player in the Baltics. We also bolstered our cooperation with leading Baltic payment service providers to extend our products to an increasing number of small and medium sized online merchants. As a result, Inbank reached a total of 5,800 merchants at the end Q1 2024.
As 2024 progresses, Inbank continues to navigate through a challenging external environment. However, there are many reasons to be optimistic. The Polish economy is demonstrating an impressive resilience and the Baltic economies are projected to start growing again during the second half of 2024. Financial markets are expecting a more accommodative monetary policy from the European Central Bank for the remainder of the year, which will likely result in a continuous trend of lower funding cost for Inbank.”
Key financial indicators as of 31.03.2024 and for Q1:
Total assets EUR 1.34 billion
Loan and rental portfolio EUR 1.05 billion
Deposit portfolio EUR 1.11 billion
Equity EUR 128.2 million
Net profit EUR 4.0 million
Return on equity 12.6%
Consolidated income statement (in thousands of euros)
| Q1 2024 | Q1 2023 restated | 3 months 2024 | 3 months 2023 restated | |
| Interest income based on EIR | 28 768 | 21 503 | 28 768 | 21 503 |
| Interest expense | -13 612 | -9 379 | -13 612 | -9 379 |
| Net interest income | 15 156 | 12 124 | 15 156 | 12 124 |
| Fee and commission income | 111 | 123 | 111 | 123 |
| Fee and commission expenses | -1 186 | -938 | -1 186 | -938 |
| Net fee and commission income/expenses | -1 075 | -815 | -1 075 | -815 |
| Income from rental services | 7 149 | 5 237 | 7 149 | 5 237 |
| Sale of assets previously rented to customers | 4 583 | 2 914 | 4 583 | 2 914 |
| Other operating income | 339 | 96 | 339 | 96 |
| Cost of rental services | -4 789 | -3 508 | -4 789 | -3 508 |
| Cost of assets sold previously rented to customers | -4 350 | -2 583 | -4 350 | -2 583 |
| Net operating income/expenses | 2 932 | 2 156 | 2 932 | 2 156 |
| Net gains/losses from financial assets measured at fair value | 890 | -57 | 890 | -57 |
| Foreign exchange rate gain/losses | -339 | 83 | -339 | 83 |
| Net gain/losses from financial items | 551 | 26 | 551 | 26 |
| Total net interest, fee and other income and expenses | 17 564 | 13 491 | 17 564 | 13 491 |
| Personnel expenses | -4 771 | -4 037 | -4 771 | -4 037 |
| Marketing expenses | -633 | -798 | -633 | -798 |
| Administrative expenses | -2 838 | -2 407 | -2 838 | -2 407 |
| Depreciations, amortization | -1 756 | -1 394 | -1 756 | -1 394 |
| Total operating expenses | -9 998 | -8 636 | -9 998 | -8 636 |
| Share of profit from associates | 0 | 33 | 0 | 33 |
| Impairment losses on loans and advances | -3 199 | -3 129 | -3 199 | -3 129 |
| Profit before income tax | 4 367 | 1 759 | 4 367 | 1 759 |
| Income tax | -403 | 92 | -403 | 92 |
| Profit for the period | 3 964 | 1 851 | 3 964 | 1 851 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | 20 | -45 | 20 | -45 |
| Total comprehensive income for the period | 3 984 | 1 806 | 3 984 | 1 806 |
Consolidated statement of financial position (in thousands of euros)
| 31.03.2024 | 31.12.2023 | 31.03.2023 restated | |
| Assets | |||
| Cash and cash equivalents | 179 842 | 172 921 | 96 801 |
| Mandatory reserves at central banks | 22 857 | 21 020 | 16 750 |
| Investments in debt securities | 31 507 | 33 581 | 23 052 |
| Financial assets measured at fair value through profit or loss | 920 | 79 | 0 |
| Loans and advances | 957 695 | 942 056 | 794 569 |
| Investments in associates | 204 | 141 | 1 098 |
| Other financial assets | 3 802 | 5 268 | 2 512 |
| Tangible assets | 76 916 | 75 206 | 54 017 |
| Right of use assets | 25 677 | 26 716 | 22 961 |
| Intangible assets | 31 659 | 30 906 | 27 270 |
| Other assets | 8 886 | 8 185 | 7 792 |
| Deferred tax assets | 4 569 | 4 505 | 3 481 |
| Total assets | 1 344 534 | 1 320 584 | 1 050 303 |
| Liabilities | |||
| Customer deposits | 1 106 167 | 1 081 566 | 857 013 |
| Financial liabilities measured at fair value through profit or loss | 0 | 50 | 20 |
| Other financial liabilities | 55 774 | 60 927 | 54 490 |
| Current tax liability | 457 | 311 | 47 |
| Deferred tax liability | 283 | 204 | 106 |
| Other liabilities | 3 991 | 3 691 | 4 089 |
| Subordinated debt securities | 49 654 | 49 745 | 30 581 |
| Total liabilities | 1 216 326 | 1 196 494 | 946 346 |
| Equity | |||
| Share capital | 1 086 | 1 086 | 1 026 |
| Share premium | 43 563 | 43 563 | 31 855 |
| Statutory reserve | 103 | 103 | 100 |
| Other reserves | 1 697 | 1 543 | 1 529 |
| Retained earnings | 81 759 | 77 795 | 69 447 |
| Total equity | 128 208 | 124 090 | 103 957 |
| Total liabilities and equity | 1 344 534 | 1 320 584 | 1 050 303 |
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 5,800 merchants, Inbank has 896,000+ active contracts and collects deposits across 8 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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