Inbank Unaudited Financial Results for Q1 2021

In Q1 2021 Inbank earned a net profit of 2.55 million euros increasing 17% year-on-year. For the first time, the bank is consolidating its 53% stake in Mobire AS, which was acquired in January 2021. The return on equity in Q1 was 15.5%.

• Inbank�s loan portfolio increased by 25% compared to Q1 2020 reaching 433 million euros. The deposit portfolio grew 22% and reached 453 million euros by the end of Q1.
• Total sales for Q1 was 97 million euros increasing 49% year-on-year. Growth was driven by the Polish business unit that contributed 43 million euros to total sales, 258% more than a year ago.
• In terms of product segments, sales finance grew 97% year-on-year to 71 million euros, amounting to 73% of total sales. Personal loans decreased by 37% to 9 million euros, while car financing increased in sales volume by 15% to 17 million euros.
• For the first time, the Polish business unit reached quarterly profitability.
• By the end of Q1, the number of active contracts reached 718,000 growing 18% year-on-year.

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

“While in March 2020 as a result of Covid-19 pandemic, Inbank’s sales fell by half, then March this year was Inbank’s best sales month ever. Since the second half of 2020, our growth has been driven by the Polish business unit, and this continued also in the first quarter, as the Polish unit more than tripled its volume and contributed 43 million euros to total sales.

It is gratifying to see that Inbank has successfully consolidated its position in partner-based channels – we sold 71 million euros worth of hire purchase contracts, which is almost twice as much as last year. However, the crisis and continuing uncertainty have clearly left their mark on consumer confidence, and the volume of small loans has not reached the level of the first quarter last year.

We have good reason to be satisfied with the financial results for the beginning of the year. In the first quarter, Inbank sold 97 million euros worth of credit products, which is 49% more than last year. For the first time since the onset of the coronavirus crisis, Inbank’s profits have again begun to accelerate and we earned a total of 2.55 million euros in net profit, which is 17% more than a year ago.

As the economy opens, we expect strong growth in retail consumption and a recovery in loan demand in the coming quarters.”

Key financial indicators 31.03.2021

Total assets EUR 582.4 million
Loan portfolio EUR 432.7 million
Deposit portfolio EUR 452.6 million
Total equity EUR 66.9 million
Net profit EUR 2.55 million
Return on equity 15.5%

Consolidated income statement (in thousands of euros)
	Q1 2021	Q1 2020	3 months 2021	3 months 2020
Interest income based on EIR	11 116	10 887	11 116	10 887
Interest expense	-2 143	-1 936	-2 143	-1 936
Net interest income	8 973	8 951	8 973	8 951
Fee income	449	294	449	294
Fee expense	-789	-490	-789	-490
Net fee and commission income	-340	-196	-340	-196
Net gains from financial assets measured at fair value	0	0		0
Other operating income	3 522	140	3 522	140
Other operating expense	-2 721	0	-2 721	0
Total net interest, fee and other income	9 434	8 895	9 434	8 895
Personnel expenses	-2 751	-2 399	-2 751	-2 399
Marketing expenses	-543	-507	-543	-507
Administrative expenses	-1 054	-1 047	-1 054	-1 047
Depreciations, amortisation	-740	-479	-740	-479
Total operating expenses	-5 088	-4 432	-5 088	-4 432
Profit before profit from associates and impairment losses on loans	4 346	4 463	4 346	4 463
Share of profit from subsidiaries and associates	336	416	336	416
Impairment losses on loans and advances	-1 805	-2 419	-1 805	-2 419
Profit before income tax	2 877	2 460	2 877	2 460
Income tax	-331	-279	-331	-279
Profit for the period	2 546	2 181	2 546	2 181
incl. shareholders of parent company	2 387	2 181	2 387	2 181
incl. non-controlling interest	159	0	159	0
Other comprehensive income that may be reclassified subsequently to profit or loss
Currency translation differences	-126	-116	-126	-116
Total comprehensive income for the period	2 420	2 065	2 420	2 065
incl. shareholders of parent company	2 261	2 065	2 261	2 065
incl. non-controlling interest	159	0	159	0

Consolidated statement of financial position (in thousands of euros)
	31/03/2021	31/12/2020
Assets
Due from central banks	50 349	27 445
Due from credit institutions	19 185	19 784
Investments in debt securities	15 205	13 618
Loans and advances	432 672	402 212
Investments in associates	4 238	4 026
Tangible assets	7 837	833
Right of use asset	29 809	1 157
Intangible assets	17 247	16 139
Other financial assets	1 231	1 350
Other assets	2 334	1 297
Deferred tax asset	2 250	2 170
Total assets	582 357	490 031
Liabilities
Customer deposits	452 592	391 341
Other financial liabilities	40 816	12 218
Current Income tax liability	1 096	864
Other liabilities	3 343	2 810
Debt securities issued	0	4 010
Subordinated debt securities	17 573	17 563
Total liabilities	515 420	428 806
Equity
Share capital	961	961
Share premium	23 865	23 865
Statutory reserve capital	96	90
Other reserves	1 364	1 438
Retained earnings	37 252	34 871
Non-controlling interest	3 399	0
Total equity	66 937	61 225
Total liabilities and equity	582 357	490 031

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 4,000 active partners and 718,000 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

Attachment

• Inbank_Interim_Report_Q1_2021_EN