In Q1 2020 Inbank earned a net profit of 2.2 million euros. Quarterly return on equity was 18%.
- Q1 net profit grew 8% compared to Q1 2019, when Inbank reported a net profit of 2.0 million euros.
- Inbank’s loan portfolio increased 40% compared to Q1 2019 reaching 345 million euros. At the same time, the deposit portfolio grew 34%, reaching 370 million euros at the end of Q1.
- Total sales for Q1 was 67 million euros, showing an increase of 15% compared to Q1 of the previous year. In terms of growth, the largest market continues to be Poland growing 86% year-on-year.
- By the end of Q1, the number of active contracts reached 600,000 and the number of active partners we are working with reached 2,900.
Jan Andresoo, Chairman of the Management Board, comments on the results:
“The first two and a half months of 2020 passed as forecasted – the business volumes, growth rate and other key figures were in line with our plans. In January and February we grew our sales by an average of 36% compared to last year. The second half of March was already influenced by the global coronavirus outbreak and the new economic environment. However, all this still had a relatively small effect on our Q1 results.
In light of the rapidly deteriorating economic environment, we also revised our 2020 strategic priorities and made some swift corrections to our focus. We decided to focus significantly more on our core business and projects related to our B2B2C strategy. Although we will be more conservative regarding new investments, we will continue to implement our 2020 strategic priorities to a significant extent.
In addition to decreasing sales, we also witnessed an increase in refinancing and payment holiday applications, which we began to facilitate already at the beginning of the crisis. However, given the situation, those numbers are at expected levels.
In terms of our team, we do not plan any layoffs or reductions in wages. We will more likely see quite a few new talents joining Inbank this year.
We will certainly see a significant deceleration of growth and an increase in the share of impairment losses in 2020, but according to the current analysis, we will manage to get through the crisis while maintaining reasonable profitability”.
Key Financial Indicators 31.03.2020
Total assets EUR 452 million
Loan portfolio EUR 345 million
Deposit portfolio EUR 370 million
Net profit EUR 2.2 million
Total equity EUR 49 million
Return on equity 18%
| Consolidated income statement (in thousands of euros) | ||||
| Q1 2020 | Q1 2019 | 3 months 2020 | 3 months 2019 | |
| Interest income | 10 887 | 8 155 | 10 887 | 8 155 |
| Interest expense | -1 936 | -1 390 | -1 936 | -1 390 |
| Net interest income | 8 951 | 6 765 | 8 951 | 6 765 |
| Fee income | 294 | 204 | 294 | 204 |
| Fee expense | -490 | -375 | -490 | -375 |
| Net fee and commission income | -196 | -171 | -196 | -171 |
| Other operating income | 140 | 245 | 140 | 245 |
| Total net interest, fee and other income | 8 895 | 6 839 | 8 895 | 6 839 |
| Personnel expenses | -2 399 | -1 856 | -2 399 | -1 856 |
| Marketing expenses | -507 | -391 | -507 | -391 |
| Administrative expenses | -1 047 | -799 | -1 047 | -799 |
| Depreciations, amortisation | -479 | -277 | -479 | -277 |
| Total operating expenses | -4 432 | -3 323 | -4 432 | -3 323 |
| Profit before profit from associates and impairment losses on loans | 4 463 | 3 516 | 4 463 | 3 516 |
| Profit from associates and subsidiaries | 416 | 0 | 416 | 0 |
| Impairment losses on loans and advances | -2 419 | -1 195 | -2 419 | -1 195 |
| Profit before income tax | 2 460 | 2 321 | 2 460 | 2 321 |
| Income tax | -279 | -299 | -279 | -299 |
| Profit for the period | 2 181 | 2 022 | 2 181 | 2 022 |
| incl. shareholders of parent company | 2 181 | 2 022 | 2 181 | 2 022 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -116 | -1 | -116 | -1 |
| Total comprehensive income for the period | 2 065 | 2 021 | 2 065 | 2 021 |
| incl. shareholders of parent company | 2 065 | 2 021 | 2 065 | 2 021 |
| Consolidated statement of financial position (in thousands of euros) | ||
| 31/03/2020 | 31/12/2019 | |
| Assets | ||
| Due from central banks | 64 033 | 83 080 |
| Due from credit institutions | 21 809 | 20 655 |
| Loans and advances | 344 799 | 338 157 |
| Investments in associates | 3 317 | 3 276 |
| Tangible assets | 916 | 840 |
| Right of use asset | 687 | 773 |
| Intangible assets | 12 886 | 11 721 |
| Other financial assets | 840 | 1 692 |
| Other assets | 715 | 588 |
| Deferred tax asset | 1 839 | 1 985 |
| Total Assets | 451 841 | 462 767 |
| Liabilities | ||
| Customer deposits | 370 037 | 377 518 |
| Other financial liabilities | 7 932 | 13 545 |
| Other liabilities | 2 889 | 2 837 |
| Debt securities issued | 4 010 | 4 010 |
| Subordinated debt securities | 17 535 | 17 537 |
| Total Liabilities | 402 403 | 415 447 |
| Equity | ||
| Share capital | 903 | 903 |
| Share premium | 15 908 | 15 908 |
| Statutory reserve capital | 90 | 88 |
| Other reserves | 1 400 | 1 463 |
| Retained earnings | 31 137 | 28 958 |
| Total Equity | 49 438 | 47 320 |
| Total Liabilities and equity | 451 841 | 462 767 |
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 2,900 active partners and 600,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.
Additional information:
Merit Arva
Inbank AS
Head of Corporate Communications
merit.arva@inbank.ee
+372 553 3550
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