Inbank’s unaudited financial results for the first quarter of 2022

In the first quarter of 2022, Inbank made a net profit of 2.9 million euros. Quarterly profit increased 15% from a year ago and return on equity was 14.8%.

  • Inbank’s loan portfolio increased by 48% compared to the first quarter of 2021 to reach 640 million euros.
  • The deposit portfolio increased by 50% and reached 677 million euros at the end of the first quarter.
  • Total first-quarter revenue was €125 million, up 29% year-on-year.
  • In terms of product segments, sales financing increased 22% year-on-year to €86 million, or 68% of total sales. Personal loans increased by 70% to 15 million euros, while car financing increased in sales volume by 38% to 23 million euros.
  • At the end of the first quarter, Inbank had 804,000 active contracts and more than 4,700 active merchant partners.

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

“While the first quarter of the year had started strong for Inbank, the situation changed overnight when Russia launched the war against Ukraine on February 24.

During the first weeks of the war, consumer behavior changed dramatically, impacting Inbank’s first quarter sales results. At the end of March, the situation stabilized and total sales for the quarter amounted to 125 million euros, or 29% more than a year ago.

All in all, the first quarter of 2022 was once again full of challenges, which the external environment has presented to us since the start of the health crisis. However, thanks to our flexible structure and our focus on partners and customers, Inbank has been able to react quickly to all changes. As the war in Ukraine continues, rising inflation is expected to change the interest rate environment, to which the bank must respond. Although customer payment behavior remained healthy, the effects of the war are expected to affect credit quality in the second half, which is why we increased our credit risk provisions in the first quarter. Over the next few quarters, Inbank will focus on providing high quality services to our partners, maintaining profitability and successfully entering the Czech market.

Key financial indicators 31.03.2022

Total assets €846 million
Loan portfolio EUR 640 million
Deposit portfolio EUR 677 million
Total equity EUR 82.1 million
Net profit 2.94 million euros
Return on equity 14.8%

Consolidated income statement (in thousands of euros)
Q1 2022 Q1 2021 3 months 2022 3 months 2021
Interest income based on EIR 13,821 11,116 13,821 11,116
Interest expense -2,947 -2,143 -2,947 -2,143
Net interest income 10,874 8,973 10,874 8,973
Fee receipts 705 449 705 449
Fees -802 -789 -802 -789
Net fee and commission income -97 -340 -97 -340
Net gains on financial assets measured at fair value -184 0 -184 0
Exchange gains/losses -27 60 -27 60
Net gains/losses on financial items -211 60 -211 60
Other exploitation products 5,659 3,522 5,659 3,522
Other operating expenses -3,794 -2,721 -3,794 -2,721
Total net interest, commissions and other income 12,431 9,494 12,431 9,494
Personal expenses -3,289 -2,751 -3,289 -2,751
Marketing costs -563 -543 -563 -543
Administrative expenses -1,851 -1,114 -1,851 -1,114
Depreciation, amortization -1,009 -740 -1,009 -740
Total operating expenses -6,712 -5,148 -6,712 -5,148
Earnings before associates and impairment losses on loans 5,719 4,346 5,719 4,346
Share of profits of subsidiaries and associates -58 336 -58 336
Impairment losses on loans and advances -2,573 -1,805 -2,573 -1,805
Profit before income tax 3,088 2,877 3,088 2,877
Income tax -147 -331 -147 -331
Profit for the period 2,941 2,546 2,941 2,546
Other items of comprehensive income that may be reclassified subsequently to profit or loss 0 0 0 0
Currency translation differences 96 -126 96 -126
Total comprehensive income for the period 3,037 2,420 3,037 2,420
Consolidated statement of financial position (in thousands of euros)
31.03.2022 31.03.2021
Assets
Claims on central banks 89,709 50,349
Claims on credit institutions 17,565 19,185
Investments in debt securities 8,425 15,205
Loans and advances 639 653 432,672
Investments in associates 716 4,238
Fixed assets 25,982 7,837
Right-of-use asset 25,943 29,809
Intangible assets 23,224 17,247
Other financial assets 3,207 1,231
other assets 4,653 2,334
Deferred tax asset 2,601 2,250
Assets held for sale 4,203 0
Total assets 845 881 582 357
Passives
Customer deposits 676 918 452 592
Other financial liabilities 46 203 40,816
Current tax debt 167 1,096
Deferred tax liability 89 0
Other liabilities 3,173 3,343
Debt securities issued 0 0
Subordinated debt securities 37,041 17,573
Total responsibilities 763,591 515 420
Equity
Share the capital 997 961
Premium 30,436 23,865
Legal reserve capital 100 96
Other reserves 1,773 1,364
Retained earnings 48,800 37,252
Total equity 82 106 63,538
Total Liabilities and Equity 845 697 578 958

Inbank is a digital bank focused on consumer finance, active in the Baltics, Poland and Czechia, with additional deposits accepted in Germany, Austria, the Netherlands and Finland. Inbank a over 4,700 active partners and 804,000 actifive contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

Further information:

Merit Arva
Inbank AS
Communications Manager
[email protected]
+372 553 3550

  • Inbank_Interim_Report_2022_Q1

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