ANNOUNCEMENT
20.02.2020
Inbank AS
Inbank Unaudited Financial Results for Q4 and Full Year 2019
In Q4 2019 Inbank earned a net profit of 3.4 million euros and the 2019 annual profit reached the 10.0 million euro threshold. Annual return on equity was 23.9%.
- The Q4 net profit grew 13% compared to Q4 2018, when Inbank reported a net profit of 3.1 million euros. The annual net profit for 2019 was 10.0 million euros, which is 8% more than the previous year.
- Inbank’s loan portfolio increased 50% compared to Q4 2018 reaching 338 million euros. At the same time, the deposit portfolio grew 57%, reaching 378 million euros at year end.
- Total sales for Q4 was 85 million euros showing an increase of 39% compared to Q4 of the previous year. In terms of growth, the largest market continues to be Poland with 18 million euros (+173%), followed by Lithuania with 29 million (+28%), Estonia with 24 million (+22%) and Latvia with 14 million euros (+17%).
- Annual sales volume in 2019 was 305 million euros; that is, 46% more year-on-year. Sales figures by market were the following: Lithuania 102 million, Estonia 94 million, Poland 55 million and Latvia 53 million euros.
- By the end of Q4, the number of active contracts reached 550,000 growing 23% year on year.
Jan Andresoo, Chairman of the Management Board, comments on the results:
“Inbank continues to be a profitable high-growth company. Our annual net profit reached 10 million euros in 2019, increasing 8% compared to 2018. Taking into account a significantly larger proportion of non-recurring profit in 2018, we consider this a very good result.
Inbank grew well in all markets in 2019 and especially in Poland, where business volumes increased almost five times from 12 million to 55 million euros. The share of the Polish volumes in our total sales increased from 6% to 18%.
In addition, many strategic projects were realised both in product development and other areas: we launched a new payment method – Slice – in cooperation with Maksekeskus, simplified our legal structure, listed Tier 2 bonds on the stock exchange, opened a branch in Lithuania and sold our remaining shareholding in Coop Pank”.
Key Financial Indicators 31.12.2019
Total assets EUR 463 million
Loan portfolio EUR 338 million
Deposit portfolio EUR 378 million
Net profit EUR 10 million
Total equity EUR 47 million
Return on equity 23.9%
| Income Statement (in thousands of euros) | ||||
| Q4 2019 | Q4 2018 | 2019 | 2018 | |
| Interest income | 10 577 | 7 848 | 37 560 | 23 633 |
| Interest expense | -1 909 | -1 211 | -6 380 | -3 760 |
| Net interest income | 8 668 | 6 637 | 31 180 | 19 873 |
| Fee income | 278 | 180 | 965 | 703 |
| Fee expense | -481 | -371 | -1 742 | -1 091 |
| Net fee and commission income | -203 | -191 | -777 | -388 |
| Net gains from financial assets measured at fair value | 204 | 0 | 743 | 1 204 |
| Other operating income | 307 | 214 | 885 | 666 |
| Total net interest, fee and other income | 8 976 | 6 660 | 32 031 | 21 355 |
| Personnel expenses | -2 128 | -1 761 | -8 026 | -5 795 |
| Marketing expenses | -896 | -647 | -2 583 | -1 592 |
| Administrative expenses | -1 345 | -982 | -4 084 | -2 814 |
| Depreciations, amortisation | -389 | -161 | -1 301 | -445 |
| Total operating expenses | -4 758 | -3 551 | -15 994 | -10 646 |
| Profit before profit from associates and impairment losses on loans | 4 218 | 3 109 | 16 037 | 10 709 |
| Share of profit from associates | 720 | 0 | 720 | 1 986 |
| Impairment losses on loans and advances | -1 204 | 401 | -6 049 | -2 686 |
| Profit before income tax | 3 734 | 3 510 | 10 708 | 10 009 |
| Income tax | -290 | -459 | -698 | -733 |
| Profit for the period | 3 444 | 3 051 | 10 010 | 9 276 |
| incl. Shareholders of parent company | 3 444 | 3 048 | 10 010 | 9 262 |
| incl. Non-controlling interest | 0 | 3 | 0 | 14 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -135 | 21 | -53 | 73 |
| Total comprehensive income for the period | 3 309 | 3 072 | 9 957 | 9 349 |
| incl. Shareholders of parent company | 3 309 | 3 069 | 9 957 | 9 335 |
| incl. Non-controlling interest | 0 | 3 | 0 | 14 |
| Consolidated statement of financial position (in thousands of euros) | ||
| 31/12/2019 | 31/12/2018 | |
| Assets | ||
| Cash in hand | 0 | 4 |
| Due from central banks | 83 080 | 64 620 |
| Due from credit institutions | 20 655 | 13 700 |
| Financial assets at fair value through profit and loss | 0 | 4 600 |
| Loans and advances | 338 157 | 225 639 |
| Investments in associates | 3 276 | 97 |
| Tangible assets | 840 | 545 |
| Right of use asset | 773 | 0 |
| Intangible assets | 11 721 | 7 697 |
| Other financial assets | 1 692 | 64 |
| Other assets | 588 | 514 |
| Deferred tax asset | 1 985 | 564 |
| Total Assets | 462 767 | 318 044 |
| Liabilities | ||
| Loan from credit institution | 0 | 10 429 |
| Customer deposits | 377 518 | 240 175 |
| Other financial liabilities | 13 545 | 8 776 |
| Other liabilities | 2 837 | 2 654 |
| Debt securities issued | 4 010 | 10 017 |
| Subordinated debt securities | 17 537 | 9 528 |
| Total liabilities | 415 447 | 281 579 |
| Equity | ||
| Share capital | 903 | 874 |
| Share premium | 15 908 | 15 053 |
| Statutory reserve capital | 88 | 79 |
| Other reserves | 1 463 | 1 401 |
| Retained earnings | 28 958 | 19 018 |
| Non-controlling interest | 0 | 40 |
| Total Equity | 47 320 | 36 465 |
| Total liabilities and equity | 462 767 | 318 044 |
Inbank is a consumer finance focused digital bank active in the Baltics and Poland with additional deposits accepted in Germany, Austria and the Netherlands. Inbank has over 2,000 active partners and 550,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.
Additional information:
Kärri Brewster-Palts
Inbank AS
Head of Group Marketing
karri.brewster-palts@inbank.ee
+372 5565 5500
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