In Q3 2023 Inbank earned a consolidated net profit of 2.9 million euros. The net profit in the first nine months of 2023 was 7.4 million euros. The return on equity in Q3 was 10.6%.
- The Q3 net profit decreased by 78% compared to Q3 2022 when Inbank completed the sale of its 29.8% stake in Maksekeskus AS, which resulted in 11.4 million euros of extraordinary profit. Excluding the extraordinary, net profit increased by 43% year-on-year.
- Inbank’s loan and subscription portfolio increased by 27% compared to Q3 2022 reaching 975.1 million euros. The deposit portfolio grew 40% and reached 1.02 billion euros by the end of Q3.
- Inbank’s gross merchandise value (GMV) during the third quarter was 182.4 million euros, which is 18% more comparing to same period a year ago. In terms of product segments, Car finance continued to show especially strong results with 45.1 million euros of GMV, which is 80% more than a year ago. The GMV of merchant solutions was stable at 71.8 million euros. Green finance sales were 26.4 million euros, which is a 32% increase compared to a year ago. Subscription solutions continued to show very strong sales growth of 64%, reaching 16 million euros. With lower investment in marketing, direct lending sales dropped by 14% to 23.1 million euros.
- By the end of Q3, the number of active contracts reached 894,000 growing 5.7% year-on-year. At the end of Q3, Inbank had over 5,400 partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
During the third quarter, Inbank continued to improve financial performance with strong income growth and continued sales growth. Inbank’s total quarterly income reached a record of 15.6 million euros, growing 24% year-on-year.
Since Q4 2021, when interest rates started to rise in Poland, Inbank has had to navigate a challenging environment. Our funding cost has increased by 3% during the last 24 months. At the same time, we have been able to reprice our portfolio by 2%, which has put pressure on our margins. However, we have been able to deliver record sales in all markets during these challenging times and kept our credit costs under control. As a result, Inbank profits are on the rise again with Q3 profit reaching 2.9 million euros. Quarterly ROE improved to 10.6%.
During the last quarter, our wholly owned subsidiary Inbank Rent started to offer innovative subscription services in Estonia. In September we signed a cooperation agreement with Apple premium reseller iDeal to launch a subscription service for Apple products. We expect the co-operation with Apple and other electronics retailers to roll out to all our markets during the rest of the year and in 2024."
Key financial indicators for 30.09.2023 and Q3
Total assets EUR 1.2 billion
Loan and subscription portfolio EUR 975.1 million
Deposit portfolio EUR 1.02 billion
Total equity EUR 109.9 million
Net profit EUR 2.9 million
Return on equity 10.6%
| Consolidated income statement (in thousands of euros) | ||||
| Q3 2023 | Q3 2022 | 9 months 2023 | 9 months 2022 | |
| Interest income based on EIR | 24 917 | 17 198 | 68 507 | 45 956 |
| Interest expense | -12 164 | -5 805 | -32 490 | -12 569 |
| Net interest income | 12 753 | 11 393 | 36 017 | 33 387 |
| Fee and commission income | 1 326 | 937 | 3 654 | 2 468 |
| Fee and commission expenses | -1 177 | -975 | -3 390 | -2 566 |
| Net fee and commission income/expenses | 149 | -38 | 264 | -98 |
| Net gains from financial assets measured at fair value | 110 | -149 | 76 | 9 |
| Foreign exchange rate losses | -501 | -528 | -213 | -781 |
| Net losses from financial items | -391 | -677 | -137 | -772 |
| Other operating income | 10 221 | 7 875 | 28 169 | 20 518 |
| Other operating expenses | -7 122 | -5 975 | -20 341 | -15 010 |
| Total net interest, fee and other income and expenses | 15 610 | 12 578 | 43 972 | 38 025 |
| Personnel expenses | -3 981 | -3 273 | -12 152 | -10 021 |
| Marketing expenses | -753 | -933 | -2 418 | -2 279 |
| Administrative expenses | -2 955 | -2 267 | -8 073 | -6 126 |
| Depreciations, amortisation | -1 629 | -1 183 | -4 601 | -3 286 |
| Total operating expenses | -9 318 | -7 656 | -27 244 | -21 712 |
| Profit before profit from associates and impairment losses on loans | 6 292 | 4 922 | 16 728 | 16 313 |
| Share of profit from associates | -72 | 11 570 | 322 | 11 430 |
| Impairment losses on loans and advances | -3 354 | -3 050 | -9 968 | -8 710 |
| Profit before income tax | 2 866 | 13 442 | 7 082 | 19 033 |
| Income tax | 34 | -37 | 344 | -76 |
| Profit for the period | 2 900 | 13 405 | 7 426 | 18 957 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | 324 | 231 | -12 | 266 |
| Total comprehensive income for the period | 3 224 | 13 636 | 7 414 | 19 223 |
| Consolidated statement of financial position (in thousands of euros) | |||
| 30.09.2023 | 31.12.2022 | 30.09.2022 | |
| Assets | |||
| Due from central banks | 160 455 | 126 990 | 72 902 |
| Due from credit institutions | 8 839 | 18 345 | 16 330 |
| Investments in debt securities | 31 164 | 8 415 | 9 320 |
| Financial assets designated at fair value through profit or loss | 119 | 37 | 19 |
| Loans and advances | 895 610 | 755 100 | 711 180 |
| Investments in associates | 213 | 1 065 | 1 076 |
| Other financial assets | 2 958 | 3 387 | 3 037 |
| Tangible assets | 67 458 | 48 533 | 41 610 |
| Right of use assets | 24 810 | 23 247 | 23 463 |
| Intangible assets | 29 263 | 26 249 | 25 330 |
| Other assets | 10 974 | 5 961 | 5 995 |
| Deferred tax assets | 4 066 | 3 166 | 3 122 |
| Total assets | 1 235 929 | 1 020 495 | 913 384 |
| Liabilities | |||
| Customer deposits | 1 021 106 | 828 894 | 728 457 |
| Financial liabilities designated at fair value through profit or loss | 6 | 0 | 0 |
| Other financial liabilities | 59 488 | 55 240 | 51 295 |
| Current tax liability | 138 | 0 | 234 |
| Deferred tax liability | 203 | 187 | 74 |
| Other liabilities | 3 412 | 3 680 | 3 083 |
| Subordinated debt securities | 41 708 | 30 570 | 30 559 |
| Total liabilities | 1 126 061 | 918 571 | 813 702 |
| Equity | |||
| Share capital | 1 026 | 1 026 | 1 023 |
| Share premium | 31 855 | 31 855 | 31 655 |
| Statutory reserve | 103 | 100 | 100 |
| Other reserves | 1 865 | 1 421 | 2 088 |
| Retained earnings | 75 019 | 67 522 | 64 816 |
| Total equity | 109 868 | 101 924 | 99 682 |
| Total liabilities and equity | 1 235 929 | 1 020 495 | 913 384 |
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 5,400+ merchants, Inbank has 894,000+ active contracts and collects deposits across 8 European markets. 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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