In the fourth quarter of last year, the profit of Inbank amounted to 3.1 million euros, while the annual profit was 9.3 million euros. The volume of loan portfolio was 225.6 million euros and the volume of deposits was 240.2 million euros as at the end of the year.
In comparison with the year before, Inbank demonstrated growth in all primary business segments in the fourth quarter as well as over 12 months in total. The loan portfolio of the group increased by 13.1% per quarter and by 142.9% per year, while the volume of deposits grew by 28.3% and 152.7% respectively.
“The sales volume of Inbank was 59.3 million euros in the last quarter of the year and sales were especially strong in December, during which the sales of credit products exceeded the 20 million level for the first time, reaching 20.6 million euros,” said Jan Andresoo, Chairman of the Management Board of Inbank. “We increased the sales of credit products by 61.6%, reaching 202.2 million euros on an annual basis,” said Andresoo.
According to Andresoo, Inbank exhibited growth on all its markets. The annual growth was 22.2% in Estonia (total sales 71.9 million), 257.1% in Latvia (42.3 million), 55.3% in Lithuania (75.9 million) and 115.9% in Poland (12.2 million).
“We also improved our credit quality and grew our deposit portfolio simultaneously with our growing sales figures,” noted Andresoo. “In turn, the scale effect arising from improved cost-efficiency and the growing business volume created preconditions for our excellent profit figures – the annual profit of Inbank grew by a quarter during the course of the year, reaching 9.3 million euros,” said Andresoo.
Andresoo also noted that Inbank entered into several new and significant partnership agreements in the fourth quarter. “We began cooperation with various major partners in the Baltics and in Poland. For instance, we made a pan-Baltic agreement with the Kesko Senukai Group in order to offer hire purchase products in Senukai and K-Rauta shops and 1A web shops,” said Andresoo.
Key financial figures of Inbank as at 31 December 2018
- Balance sheet – 318.0 million euros
- Loan portfolio – 225.6 million euros
- Volume of deposits – 240.2 million euros
- Profit 9.3 million euros
- Equity 36.4 million euros
- Net yield of equity 31.9%
Consolidated statement of profit and loss and other comprehensive income
| EURt | ||||
| Q4 2018 | 2018 | Q4 2017 | 2017 | |
| Interest income | 7 848 | 23 633 | 3 645 | 13 023 |
| Interest expense | -1 211 | -3 760 | -537 | -2 009 |
| Net interest income | 6 637 | 19 873 | 3 108 | 11 014 |
| Fee income | 180 | 703 | 153 | 551 |
| Fee expense | -371 | -1 091 | -168 | -607 |
| Net fee and commission income | -191 | -388 | -15 | -56 |
| Net gains from financial assets measured at fair value | 0 | 1 204 | 0 | 0 |
| Other operating income | 214 | 666 | 162 | 705 |
| Total net interest, fee and other income | 6 660 | 21 355 | 3 255 | 11 663 |
| Personnel expenses | -1 761 | -5 795 | -1 089 | -3 997 |
| Marketing expenses | -647 | -1 592 | -249 | -929 |
| Administrative expenses | -982 | -2 814 | -457 | -1 602 |
| Depreciations, amortisation | -161 | -445 | -58 | -215 |
| Total operating expenses | -3 551 | -10 646 | -1 853 | -6 743 |
| Profit before share of profit from associates and impairment losses on loans | 3 109 | 10 709 | 1 402 | 4 920 |
| Share of profit from associates | 0 | 1 986 | 15 | 6 203 |
| Impairment losses on loans and advances | 401 | -2 686 | -877 | -3 532 |
| Profit before income tax | 3 510 | 10 009 | 540 | 7 591 |
| Income tax | -459 | -733 | -313 | -92 |
| Profit for the period | 3 051 | 9 276 | 227 | 7 499 |
| Other comprehensive income/loss | ||||
| Items that may be reclassified subsequently to profit or loss | ||||
| Unrealised foreign exchange gains/losses | 21 | 73 | -44 | -38 |
| Total comprehensive income for the period | 3 072 | 9 349 | 183 | 7 461 |
| Profit is attributable to | ||||
| Owners of the parent | 3 048 | 9 262 | 225 | 7 496 |
| Non-controlling interest | 3 | 14 | 2 | 3 |
| Profit for the reporting period | 3 051 | 9 276 | 227 | 7 499 |
| Total comprehensive income/loss is attributable to | ||||
| Owners of the parent | 3 069 | 9 335 | 181 | 7 458 |
| Non-controlling interest | 3 | 14 | 2 | 3 |
| Total comprehensive income for the reporting period | 3 072 | 9 349 | 183 | 7 461 |
Consolidated statement of financial position
| EURt | ||
| 31.12.2018 | 31.12.2017 | |
| Assets | ||
| Cash in hand | 4 | 4 |
| Due from central banks | 64 620 | 14 767 |
| Due from credit institutions | 13 700 | 8 530 |
| Financial assets at fair value through profit and loss | 4 600 | 0 |
| Loans and advances | 225 639 | 92 895 |
| Investments in associates | 97 | 7 806 |
| Tangible assets | 545 | 279 |
| Intangible assets | 7 697 | 816 |
| Other financial assets | 64 | 61 |
| Other assets | 514 | 459 |
| Deferred tax asset | 564 | 364 |
| Total assets | 318 044 | 125 981 |
| Liabilities | ||
| Loan from credit institutions | 10 429 | 0 |
| Customer deposits | 240 175 | 95 056 |
| Other financial liabilities | 8 776 | 1 263 |
| Other liabilities | 2 654 | 1 136 |
| Debt securities issued | 10 017 | 0 |
| Subordinated debt securities | 9 528 | 6 480 |
| Total liabilities | 281 579 | 103 935 |
| Equity | ||
| Share capital | 874 | 782 |
| Share premium | 15 053 | 9 068 |
| Statutory reserve capital | 79 | 79 |
| Other reserves | 1 401 | 1 352 |
| Retained earnings | 19 018 | 10 739 |
| Total equity attributable to the shareholders of parent company | 36 425 | 22 020 |
| Non-controlling interest | 40 | 26 |
| Total equity | 36 465 | 22 046 |
| Total liabilities and equity | 318 044 | 125 981 |
The Estonian version of the interim report is attached to this announcement. The English version will be published via a stock announcement on 1 March 2019.
Inbank started its banking activities in 2015 and provides its services through its internet bank and partner network. Inbank is active in Estonian, Latvian, Lithuanian and Polish consumer financing markets. In addition, international deposits are gathered from German and Austrian markets.
Additional information:
Jan Andresoo
Inbank AS
Chairman of the Management Board
+372 50 84 184
jan.andresoo@inbank.ee
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