Published: 2020-05-07 07:00:00 CEST
Quarterly report

Inbank Unaudited Financial Results for Q1 2020

In Q1 2020 Inbank earned a net profit of 2.2 million euros. Quarterly return on equity was 18%.

  • Q1 net profit grew 8% compared to Q1 2019, when Inbank reported a net profit of 2.0 million euros.
  • Inbank’s loan portfolio increased 40% compared to Q1 2019 reaching 345 million euros. At the same time, the deposit portfolio grew 34%, reaching 370 million euros at the end of Q1.
  • Total sales for Q1 was 67 million euros, showing an increase of 15% compared to Q1 of the previous year. In terms of growth, the largest market continues to be Poland growing 86% year-on-year.
  • By the end of Q1, the number of active contracts reached 600,000 and the number of active partners we are working with reached 2,900.

Jan Andresoo, Chairman of the Management Board, comments on the results:

“The first two and a half months of 2020 passed as forecasted – the business volumes, growth rate and other key figures were in line with our plans. In January and February we grew our sales by an average of 36% compared to last year. The second half of March was already influenced by the global coronavirus outbreak and the new economic environment. However, all this still had a relatively small effect on our Q1 results.

In light of the rapidly deteriorating economic environment, we also revised our 2020 strategic priorities and made some swift corrections to our focus. We decided to focus significantly more on our core business and projects related to our B2B2C strategy. Although we will be more conservative regarding new investments, we will continue to implement our 2020 strategic priorities to a significant extent.

In addition to decreasing sales, we also witnessed an increase in refinancing and payment holiday applications, which we began to facilitate already at the beginning of the crisis. However, given the situation, those numbers are at expected levels.

In terms of our team, we do not plan any layoffs or reductions in wages. We will more likely see quite a few new talents joining Inbank this year.

We will certainly see a significant deceleration of growth and an increase in the share of impairment losses in 2020, but according to the current analysis, we will manage to get through the crisis while maintaining reasonable profitability”.

Key Financial Indicators 31.03.2020

Total assets EUR 452 million
Loan portfolio EUR 345 million
Deposit portfolio EUR 370 million
Net profit EUR 2.2 million
Total equity EUR 49 million
Return on equity 18%

Consolidated income statement (in thousands of euros)
3 months
3 months
Interest income10 8878 15510 8878 155
Interest expense-1 936-1 390-1 936-1 390
Net interest income8 9516 7658 9516 765
Fee income294204294204
Fee expense-490-375-490-375
Net fee and commission income-196-171-196-171
Other operating income140245140245
Total net interest, fee and other income8 8956 8398 8956 839
Personnel expenses-2 399-1 856-2 399-1 856
Marketing expenses-507-391-507-391
Administrative expenses-1 047-799-1 047-799
Depreciations, amortisation-479-277-479-277
Total operating expenses-4 432-3 323-4 432-3 323
Profit before profit from associates and impairment losses on loans4 4633 5164 4633 516
Profit from associates and subsidiaries41604160
Impairment losses on loans and advances-2 419-1 195-2 419-1 195
Profit before income tax2 4602 3212 4602 321
Income tax-279-299-279-299
Profit for the period2 1812 0222 1812 022
incl. shareholders of parent company2 1812 0222 1812 022
Other comprehensive income that may be reclassified subsequently to profit or loss    
Currency translation differences-116-1-116-1
Total comprehensive income for the period2 0652 0212 0652 021
incl. shareholders of parent company2 0652 0212 0652 021

Consolidated statement of financial position (in thousands of euros)
Due from central banks64 03383 080
Due from credit institutions21 80920 655
Loans and advances 344 799338 157
Investments in associates3 3173 276
Tangible assets916840
Right of use asset687773
Intangible assets12 88611 721
Other financial assets8401 692
Other assets715588
Deferred tax asset1 8391 985
Total Assets451 841462 767
Customer deposits370 037377 518
Other financial liabilities7 93213 545
Other liabilities2 8892 837
Debt securities issued4 0104 010
Subordinated debt securities17 53517 537
Total Liabilities402 403415 447
Share capital903903
Share premium15 90815 908
Statutory reserve capital9088
Other reserves1 4001 463
Retained earnings31 13728 958
Total Equity49 43847 320
Total Liabilities and equity451 841462 767

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 2,900 active partners and 600,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

Additional information:

Merit Arva
Inbank AS
Head of Corporate Communications
+372 553 3550