Inbank unaudited financial results for Q1 2024

In Q1 2024 Inbank earned a consolidated net profit of 4.0 million euros increasing 114% year-on-year. The return on equity in Q1 was 12.6%.

  • Inbank’s loan and rental portfolio increased by 23% compared to Q1 2023 reaching 1.05 billion euros. The deposit portfolio grew 29% and reached 1.11 billion euros by the end of Q1. At the end of Q1 2024, Inbank’s total assets stood at 1.34 billion euros.
  • The Gross Merchandise Value (GMV) during the first quarter was 162 million euros, which is 5% more than a year ago. In terms of product segments, car finance continued to show especially strong results with 45 million euros of GMV, which is 39% more than a year ago. The GMV of green finance was stable at 20 million euros. All other product segments had slightly lower sales volumes than a year ago. Rental services were 13 million euros, which is a 6% decrease compared to a year ago. Direct lending sales decreased by 4% to 20 million euros and merchant solutions by 6% to 65 million euros. 
  • By the end of Q1, the number of active contracts reached 896,000. At the end of Q1, Inbank reached 5,800 active partners.

Priit Põldoja, Chairman of the Management Board, comments on the results:

“Inbank begins 2024 with a steady improvement in financial performance. Our total net income grew by 30% compared to the same quarter a year ago, while our operating expenses grew by 16%. Impairment losses remained at the same level as a year ago, while loan and rental portfolios grew by 23%.

Sales results were seasonally lower, but on a year-on-year basis quite stable in all markets. GMV in CEE was up 11% with improving sales in Czechia, while Baltic sales remained at 2023 levels on the back of weak macroeconomic conditions.

Despite facing challenging economic conditions over the last two years, our loan impairment losses have remained low. Impairment losses in the first quarter were impressive, standing at 1.35% of the average loan portfolio.

During the first quarter, Inbank started cooperating with Pigu Group, the largest e-commerce player in the Baltics. We also bolstered our cooperation with leading Baltic payment service providers to extend our products to an increasing number of small and medium sized online merchants. As a result, Inbank reached a total of 5,800 merchants at the end Q1 2024.

As 2024 progresses, Inbank continues to navigate through a challenging external environment. However, there are many reasons to be optimistic. The Polish economy is demonstrating an impressive resilience and the Baltic economies are projected to start growing again during the second half of 2024. Financial markets are expecting a more accommodative monetary policy from the European Central Bank for the remainder of the year, which will likely result in a continuous trend of lower funding cost for Inbank.”

Key financial indicators as of 31.03.2024 and for Q1: 

Total assets EUR 1.34 billionLoan and rental portfolio EUR 1.05 billionDeposit portfolio EUR 1.11 billionEquity EUR 128.2 millionNet profit EUR 4.0 millionReturn on equity 12.6%

Consolidated income statement (in thousands of euros)

  Q1 2024 Q1 2023 restated 3 months 2024 3 months 2023 restated
Interest income based on EIR 28 768 21 503 28 768 21 503
Interest expense -13 612 -9 379 -13 612 -9 379
Net interest income 15 156 12 124 15 156 12 124
         
Fee and commission income 111 123 111 123
Fee and commission expenses -1 186 -938 -1 186 -938
Net fee and commission income/expenses -1 075 -815 -1 075 -815
         
Income from rental services 7 149 5 237 7 149 5 237
Sale of assets previously rented to customers 4 583 2 914 4 583 2 914
Other operating income 339 96 339 96
Cost of rental services -4 789 -3 508 -4 789 -3 508
Cost of assets sold previously rented to customers -4 350 -2 583 -4 350 -2 583
Net operating income/expenses 2 932 2 156 2 932 2 156
         
Net gains/losses from financial assets measured at fair value 890 -57 890 -57
Foreign exchange rate gain/losses -339 83 -339 83
Net gain/losses from financial items 551 26 551 26
         
Total net interest, fee and other income and expenses 17 564 13 491 17 564 13 491
         
Personnel expenses -4 771 -4 037 -4 771 -4 037
Marketing expenses -633 -798 -633 -798
Administrative expenses -2 838 -2 407 -2 838 -2 407
Depreciations, amortization -1 756 -1 394 -1 756 -1 394
Total operating expenses -9 998 -8 636 -9 998 -8 636
         
Share of profit from associates 0 33 0 33
Impairment losses on loans and advances -3 199 -3 129 -3 199 -3 129
Profit before income tax 4 367 1 759 4 367 1 759
         
Income tax -403 92 -403 92
Profit for the period 3 964 1 851 3 964 1 851
         
Other comprehensive income that may be reclassified subsequently to profit or loss        
Currency translation differences 20 -45 20 -45
Total comprehensive income for the period 3 984 1 806 3 984 1 806

Consolidated statement of financial position (in thousands of euros)

  31.03.2024 31.12.2023 31.03.2023 restated
Assets      
Cash and cash equivalents 179 842 172 921 96 801
Mandatory reserves at central banks 22 857 21 020 16 750
Investments in debt securities 31 507 33 581 23 052
Financial assets measured at fair value through profit or loss 920 79 0
Loans and advances 957 695 942 056 794 569
Investments in associates 204 141 1 098
Other financial assets 3 802 5 268 2 512
Tangible assets 76 916 75 206 54 017
Right of use assets 25 677 26 716 22 961
Intangible assets 31 659 30 906 27 270
Other assets 8 886 8 185 7 792
Deferred tax assets 4 569 4 505 3 481
Total assets 1 344 534 1 320 584 1 050 303
       
Liabilities      
Customer deposits 1 106 167 1 081 566 857 013
Financial liabilities measured at fair value through profit or loss 0 50 20
Other financial liabilities 55 774 60 927 54 490
Current tax liability 457 311 47
Deferred tax liability 283 204 106
Other liabilities 3 991 3 691 4 089
Subordinated debt securities 49 654 49 745 30 581
Total liabilities 1 216 326 1 196 494 946 346
       
Equity      
Share capital 1 086 1 086 1 026
Share premium 43 563 43 563 31 855
Statutory reserve 103 103 100
Other reserves 1 697 1 543 1 529
Retained earnings 81 759 77 795 69 447
Total equity 128 208 124 090 103 957
       
Total liabilities and equity 1 344 534 1 320 584 1 050 303

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 5,800 merchants, Inbank has 896,000+ active contracts and collects deposits across 8 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.

Additional information:Merit ArvaHead of Communicationsmerit.arva@inbank.ee+372 553 3550

Attachment

  • Inbank_Interim_Report_2024_Q1