Inbank Unaudited Financial Results for Q3 and 9 Months 2022 – GlobeNewswire | CarTailz

In the third quarter of 2022, Inbank generated a consolidated net profit of €13.4 million, an increase of 265% year-on-year. The net profit in the first nine months of 2022 was 19 million euros, which is 136% more than in the previous year. The return on equity in the third quarter was 57.7%.

  • Inbank’s loan portfolio increased by 31% to €711 million compared to the third quarter of 2021. The deposit portfolio grew by 22% and reached 728 million euros at the end of the third quarter.
  • Total revenue for the third quarter was nearly €145 million, up 7% year-on-year.
  • By product segment, sales financing decreased 9% year-on-year to €86 million, representing 60% of total sales. Personal loans grew by 77% to nearly €27 million, while auto financing grew in sales volume by 27% to €31 million.
  • On July 1, Inbank completed the sale of its 29.8% stake in Maksekeskus, resulting in an exceptional gain of €11.4 million in the third quarter.
  • By the end of the third quarter, active contracts reached 845,000, up 10% year over year.

Priit Põldoja, CEO, comments on the results:

“Although Inbank continued its usual strong growth and sold credit products for a record €145 million, the financial results for the third quarter of 2022 were anything but ordinary. We generated a record profit of EUR 13.4 million in the third quarter, however this result was impacted by extraordinary income and expenses.

Despite the difficult economic situation, Inbank is still on a strong growth course. Record sales increased the loan portfolio by 31% year-on-year to EUR 711.2 million. Sales volumes in the Baltics continued record growth, totaling 91.8 million. In an environment of higher interest rates and a weakening currency, Polish sales stabilized at a quarterly level of EUR 53.1 million, marking the best result since early 2022.

Our Czech branch started business in the third quarter and signed the first customer contracts. We continue to invest in technology and growth in new markets. To serve this goal, we will merge our technology and product development units effective November 1st. The new entity will be led by Erik Kaju, who has led technology teams at Wise for 8 years and will also join the Inbank board. Piret Paulus has also returned from sabbatical to resume her duties as a member of Inbank’s Board of Directors and as the new head of Inbank’s growth and business development unit.

All in all, Inbank is well positioned to thrive in an environment that favors the development of a digital and green economy. Our technological infrastructure and our strategy focused on product innovation offer growth opportunities across different product verticals and business models. That is why we continue to invest in expanding our competitiveness, even in difficult times.”

Financial figures for 09/30/2022 and Q3

Balance sheet total EUR 913.4 million
Loan portfolio EUR 711.2 million
Deposits EUR 728.5 million
Total equity 99.7 million euros
Annual surplus EUR 13.4 million
Return on equity 57.7%

Consolidated income statement (in thousands of euros)*
Q3 2022 Q3 2021 9 months 2022 9 months 2021
Interest income based on EIR 17 198 12 270 45 956 34 859
interest expense -5 805 -2 585 -12 569 -6 992
interest income 11 393 9 685 33 387 27 867
fee income 937 604 2 468 1 539
fee expense -975 -735 -2 566 -2 307
commission income -38 -131 -98 -768
Net gains on financial assets measured at fair value -149 0 9 0
Foreign Exchange Gains/Losses -528 133 -781 2
Net gains/losses on financial items -677 133 -772 2
The other operating income 7 529 5 008 19 625 13 561
Other operating expenses -5 629 -3 750 -14 117 -10 178
Total net interest, fees and other income 12 578 10 945 38 025 30 484
personnel costs -3 273 -2 947 -10 021 -8 530
marketing expenses -933 -626 -2 279 -1 826
administrative expenses -2 267 -1 431 -6 126 -4 127
Depreciation, depreciation -1 183 -876 -3 286 -2 421
business expenses -7 656 -5 880 -21 712 -16 904
Profit before profit from associates and allowance for loans 4 922 5 065 16 313 13 580
Share of profits of subsidiaries and associated companies 11 570 6 11 430 263
Impairment losses on loans and receivables -3 050 -1 251 -8 710 -4 997
profit before income tax 13 442 3 820 19 033 8 846
income tax -37 -145 -76 -820
profit for the period 13 405 3 675 18 957 8 026
Other comprehensive income that may later be reclassified to profit or loss
Currency Conversion Differences 231 -160 266 -101
Overall result for the period 13 636 3 515 19 223 7 925
Consolidated balance sheet (in thousands of euros)
09/30/2022 12/31/2021 09/30/2021
financial assets
Due from central banks 72 902 77 453 99 112
Receivables from credit institutions 16 330 17 870 11 744
Investments in Debt Securities 9 320 7 684 7 118
Financial assets at fair value through profit or loss 19 0 0
loans and advances 711 180 604 848 543 206
Investments in associated companies 1 076 774 4 792
property 41 610 19 147 16 426
right-of-use asset 23 463 25 231 25 776
Intangible Assets 25 330 22 423 21 521
Other financial assets 3 037 2 151 1 317
Other assets 5 995 2 769 5 078
Deferred tax assets 3 122 2 401 2 381
Assets held for sale 0 4 203 0
total assets 913 384 786 954 738 471
liabilities
customer deposits 728 457 617 857 599 007
Other Financial Liabilities 51 295 49 188 45 508
Ongoing tax liability 234 284 788
Deferred tax liability 74 125 72
Other liabilities 3 083 3 296 5 546
Subordinated Debt 30 559 37 187 17 591
Total Liabilities 813 702 707 937 668 512
Equity capital
share capital 1 023 997 970
capital reserve 31 655 30 436 24 463
Legal reserve capital 100 96 96
other reserves 2 088 1 625 1 539
retained earnings 64 816 45 863 42 891
total capital 99 682 79 017 69 959
sum of liabilities 913 384 786 954 738 471

*For a better overview, an adjustment was made in the report as of December 31, 2021, which led to a reclassification of the subsidiary’s 100% buyout option expense, which is now shown in the same expense group as the subsidiary’s other operating expenses. In addition, due to the growth of Polish and Czech businesses and foreign currency transactions, currency gains and losses have been reclassified from administrative expenses and reported under ‘Foreign exchange revaluation losses/gains’. The impact of the change on the report and the metrics are shown in the table below:

12/31/2021 reclassification 31.12.2021 adjusted Q3 2021 reclassification Q3 2021 adjusted 9 months 2021 reclassification 9 months 2021 adjusted
Foreign Exchange Gains/Losses 0 -23 -23 0 133 133 0 2 2
Other operating expenses -13 833 -418 -14 251 -3 681 -69 -3 750 -9 994 -184 -10 178
administrative expenses -6 627 441 -6 186 -1 367 -64 -1 431 -4 309 182 -4 127

Inbank is a consumer finance-focused digital bank active in the Baltics, Poland and the Czech Republic, with additional deposits accepted in Germany, Austria, the Netherlands and Finland. Inbank has over 6,000 active partners and 845,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

Additional information:
Merit Arva
Inbank AS
Head of Communications
merit.arva@inbank.ee
+372 553 3550

  • Inbank_Interim Report_2022_Q3

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