In 2023, Inbank earned a consolidated net profit of 10.2 million euros. The return on equity in 2023 was 9%.
- The consolidated net profit for 2023 increased by 5% year-on-year to 10.2 million euros excluding the extraordinary profit of 11.4 million euros from the sale of Inbank’s 29.8% stake in Maksekeskus AS in 2022.
- Inbank’s loan and rental portfolio reached 1.03 billion euros increasing 26% year-on-year while the deposit portfolio grew 30% and reached 1.08 billion euros at year end. At the end of 2023, Inbank’s total assets stood at 1.3 billion euros growing 29% year-on-year.
- The total net income for 2023 was 60.2 million euros increasing by 17% year-on-year and operating expenses increased by 22% to 36.9 million euros.
- In 2023, sales volumes grew in all markets and product groups. The Gross Merchandise Value (GMV) for 2023 was 688 million euros increasing 19% year-on-year.
- In terms of product segments, 2023 was a breakthrough year for car financing with GMV growing by 74% to 159 million euros. Rental services including car rental grew by 44% to 59.8 million euros. The GMV of merchant solutions reached 285.2 million euros, growing by 3% year-on-year. Green finance volumes made a good recovery in 2023 by growing 20% to 95.9 million euros. Direct lending volumes remained quite stable with growth of 2% to 87.8 million euros.
- Despite high inflation and economic downturn, our credit quality has remained strong. The impairment losses to the average credit portfolio were 1.6%.
- By the end of 2023, Inbank had 892,000 active customer contracts and 5,400 active retail partners.
Results for Q4 2023
- The net profit for Q4 increased 30% year-on-year to 2.8 million euros. The quarterly return on equity was 9.4%.
- The total net income for Q4 was 16.2 million euros increasing by 21% year-on-year and operating expenses for Q4 increased by 13% to 9.7 million euros.
- The GMV for Q4 was 167 million euros, increasing 14% year-on-year.
- In terms of product segments, green finance sales were 21.4 million euros, which is a 12% increase compared to a year ago. Car financing showed very strong growth in Q4, with sales increasing by 82% year-on-year to 39.7 million euros. In addition, rental services grew 54% to 15.5 million euros. At the same time, direct lending experienced a 4% decrease, totaling 19.1 million euros, while merchant solutions sales saw a 5% decline, amounting to 70.9 million euros.
- In Q4, Inbank’s impairment losses were 1.4% of the credit portfolio.
Priit Põldoja, Chairman of the Management Board, comments on the results:
"Despite facing ongoing headwinds from high interest rates and economic downturn, Inbank ended a challenging year with a strong quarter and a solid annual profit of 10.2 million euros.
In 2023, sales volumes grew in all markets and product groups despite a challenging macro and interest rate environment. Still, we observed a slight slowdown in Q4 sales, coinciding with a weakening of consumer confidence and retail sales. In the Baltics, Inbank remained a market leader and continues to benefit from a strong merchant network in all markets.
In 2023, Inbank remained committed to investing in product development and successfully launched an innovative rental service for electronics in Estonia and Latvia, and signed a cooperation agreement with Apple premium reseller iDeal. We anticipate extending our partnership with Apple and other electronics retailers to additional markets in 2024.
To sustain rapid growth and pursue new development opportunities, we consistently raise fresh capital. At the end of October, we issued 12 million euros worth of new shares to shareholders, employees and new investors. We ended the year issuing 8 million euros of subordinated bonds with an interest rate of 9%. The issue was oversubscribed 7.6 times, which once again confirms investor confidence in Inbank's business model and growth plans is strong. In 2023 we raised a total of 31 million euros of fresh capital to support Inbank’s product focused international growth.
We're pleased with our performance in Q4 and 2023. Despite facing some external headwinds, we grew our business, strengthened our capital base and expanded our product and technology team. We also launched a refreshed brand and laid a strong foundation for our business in Czechia. While market conditions remain challenging, we see some positive trends for Inbank emerging in 2024."
Key financial indicators as of 31.12.2023 and for Q4
Total assets EUR 1.3 billion
Loan and rental portfolio EUR 1.03 billion
Deposit portfolio EUR 1.08 billion
Total equity EUR 124.1 million
Net profit EUR 2.8 million
Return on equity 9.4%
Consolidated income statement (in thousands of euros)
| Q4 2023 | Q4 2022 restated | 12 months 2023 | 12 months 2022 restated | |
| Interest income based on EIR | 27 249 | 20 300 | 98 723 | 68 204 |
| Interest expense | −12 841 | −7 583 | −45 331 | −20 152 |
| Net interest income | 14 408 | 12 717 | 53 392 | 48 052 |
| Fee and commission income | 114 | 120 | 473 | 387 |
| Fee and commission expenses | −1 137 | −962 | −4 199 | −3 275 |
| Net fee and commission income/expenses | −1 023 | −842 | −3 726 | −2 888 |
| Income from rental services | 6 869 | 5 154 | 23 905 | 18 152 |
| Sale of assets previously rented to customers | 3 571 | 2 827 | 14 155 | 9 928 |
| Other operating income | 220 | 122 | 769 | 541 |
| Cost of rental services | −4 808 | −4 112 | −15 896 | −13 317 |
| Cost of assets sold previously rented to customers | −3 303 | −2 558 | −12 556 | −8 363 |
| Net operating income/expenses | 2 549 | 1 433 | 10 377 | 6 941 |
| Net gains from financial assets measured at fair value | −90 | 23 | −14 | 32 |
| Foreign exchange rate gain/losses | 341 | 1 | 128 | −780 |
| Net gain/losses from financial items | 251 | 24 | 114 | −748 |
| Total net interest, fee and other income and expenses | 16 185 | 13 332 | 60 157 | 51 357 |
| Personnel expenses | −4 476 | −3 801 | −16 628 | −13 822 |
| Marketing expenses | −848 | −1 071 | −3 266 | −3 350 |
| Administrative expenses | −2 960 | −2 549 | −11 033 | −8 675 |
| Depreciations, amortization | −1 406 | −1 186 | −6 007 | −4 472 |
| Total operating expenses | −9 690 | −8 607 | −36 934 | −30 319 |
| Share of profit from associates | −72 | −11 | 250 | 11 419 |
| Impairment losses on loans and advances | −3 235 | −2 460 | −13 203 | −11 170 |
| Profit before income tax | 3 188 | 2 254 | 10 270 | 21 287 |
| Income tax | −412 | −120 | −68 | −196 |
| Profit for the period | 2 776 | 2 134 | 10 202 | 21 091 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | −403 | −268 | −415 | −2 |
| Total comprehensive income for the period | 2 373 | 1 866 | 9 787 | 21 089 |
Consolidated statement of financial position (in thousands of euros)
| 31.12.2023 | 31.12.2022 restated | 31.12.2021 restated | |
| Assets | |||
| Cash and cash equivalents | 172 921 | 130 889 | 87 419 |
| Mandatory reserves at central banks | 21 020 | 14 446 | 7 904 |
| Investments in debt securities | 33 581 | 8 415 | 7 684 |
| Financial assets measured at fair value through profit or loss | 79 | 37 | 0 |
| Loans and advances | 942 056 | 755 100 | 604 848 |
| Investments in associates | 141 | 1 065 | 774 |
| Assets classified as held for sale | 0 | 0 | 4 203 |
| Other financial assets | 5 268 | 3 387 | 2 151 |
| Tangible assets | 75 206 | 48 533 | 19 147 |
| Right of use assets | 26 716 | 23 247 | 25 231 |
| Intangible assets | 30 906 | 26 249 | 22 423 |
| Other assets | 8 185 | 5 961 | 2 769 |
| Deferred tax assets | 4 505 | 3 166 | 2 401 |
| Total assets | 1 320 584 | 1 020 495 | 786 954 |
| Liabilities | |||
| Customer deposits | 1 081 566 | 828 894 | 617 857 |
| Financial liabilities measured at fair value through profit or loss | 50 | 0 | 0 |
| Other financial liabilities | 60 927 | 55 240 | 49 188 |
| Current tax liability | 311 | 0 | 284 |
| Deferred tax liability | 204 | 187 | 125 |
| Other liabilities | 3 691 | 3 680 | 3 296 |
| Subordinated debt securities | 49 745 | 30 570 | 37 187 |
| Total liabilities | 1 196 494 | 918 571 | 707 937 |
| Equity | |||
| Share capital | 1 086 | 1 026 | 997 |
| Share premium | 43 563 | 31 855 | 30 436 |
| Statutory reserve | 103 | 100 | 96 |
| Other reserves | 1 543 | 1 421 | 1 625 |
| Retained earnings | 77 795 | 67 522 | 45 863 |
| Total equity | 124 090 | 101 924 | 79 017 |
| Total liabilities and equity | 1 320 584 | 1 020 495 | 786 954 |
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 892,000 active contracts and collects deposits across 8 European markets. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Merit Arva
AS Inbank
Head of Communications
merit.arva@inbank.ee
+372 553 3550
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