Published: 2021-02-26 07:00:00 CET
Quarterly report

Inbank Unaudited Financial Results for Q4 and Full Year 2020

In Q4 2020 Inbank earned a net profit of 1.7 million euros and the 2020 annual profit reached 5.9 million euros. The annual return on equity was 10.8%.

  • Inbank’s loan portfolio increased by 19% compared to Q4 2019 reaching 402 million euros. The deposit portfolio grew 4%, reaching 391 million euros at year-end.
  • Total sales for Q4 was 89 million euros showing an increase of 12% compared to Q4 of the previous year. Growth was driven by the Polish business unit that has increased its sales by 110% and contributed 30,7 million euros to total sales. In all markets, the sales finance business grew by 44% year-on-year to 206 million euros, amounting to 74% of total sales. Personal loans decreased by 54% to 8.5 million euros, while car financing decreased in sales volume by 6% to 14.6 million euros.
  • Provisions for loan losses increased by 92% year-on-year to 2.3 million euros.
  • The Q4 net profit decreased by 50% to 1.7 million euros compared to Q4 2019, when Inbank reported a net profit of 3.4 million euros. The annual net profit for 2020 was 5.9 million euros, which is 41% less than the previous year.
  • By the end of Q4, the number of active contracts reached 690,000 growing 25% year on year.

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

“The end of the year was eventful. Despite the second wave of the coronavirus pandemic, Inbank continued to invest in product development and innovation.

In October, we launched the new generation app and credit card Inpay, which is the first in Estonia to give customers cashback on their purchases. At the end of the year, we also decided to acquire 53% of the full-service car rental company Mobire. Looking at the strong growth of the subscription-based business model globally, the acquisition of a holding in Mobire is a major step forward in strengthening our position in the Baltic car financing market and an opportunity to enter a rapidly growing innovative business model.

To support future growth, we raised 8 million euros of new capital through a share issue in November. By the end of 2020, Inbank’s equity amounted to 61.2 million euros and our capital adequacy was at its highest level for the past two years amounting to 18.6%.

In light of the global health crisis, we can be satisfied with a net profit of 5.9 million euros in 2020. It can be said that the impact of the pandemic and the restrictions on our business was also significantly smaller than expected. We remain a profitable and growing company, and despite the difficult times, we have continued to invest in new products and our people. It also became even clearer to us that the impact of digital solutions on companies' business models is becoming increasingly important. Inbank invests in the right trends and moves into a new year with positive expectations after a difficult year. ”

Key financial indicators 31.12.2020

Total assets EUR 490.0 million
Loan portfolio EUR 402.2 million
Deposit portfolio EUR 391.3 million
Total equity EUR 61.2 million
Net profit EUR 5.9 million
Return on equity 10.8%

Consolidated income statement (in thousands of euros)
12 months
12 months
Interest income based on EIR11 06110 57743 03537 560
Interest expense-1 945-1 909-7 855-6 380
Net interest income9 1168 66835 18031 180
Fee income5512781 362965
Fee expense-915-481-2 463-1 742
Net fee and commission income-364-203-1 101-777
Net gains from financial assets measured at fair value02040743
Other operating income299307768885
Total net interest, fee and other income9 0518 97634 84732 031
Personnel expenses-2 199-2 128-9 207-8 026
Marketing expenses-556-896-1 557-2 583
Administrative expenses-1 162-1 345-4 223-4 084
Depreciations, amortisation-707-389-2 334-1 301
Total operating expenses-4 624-4 758-17 321-15 994
Profit before profit from associates and impairment losses on loans4 4274 21817 52616 037
Share of profit from subsidiaries and associates121720789720
Impairment losses on loans and advances-2 317-1 204-11 546-6 049
Profit before income tax2 2313 7346 76910 708
Income tax-517-290-867-698
Profit for the period1 7143 4445 90210 010
incl. shareholders of parent company1 7143 4445 90210 010
Other comprehensive income that may be reclassified subsequently to profit or loss    
Currency translation differences-24-135-219-53
Total comprehensive income for the period1 6903 3095 6839 957
incl. shareholders of parent company1 6903 3095 6839 957

Consolidated statement of financial position (in thousands of euros)
Due from central banks27 44583 080
Due from credit institutions19 78420 655
Investments in debt securities13 6180
Loans and advances 402 212338 157
Investments in associates4 0263 276
Tangible assets833840
Right of use asset1 157773
Intangible assets16 13911 721
Other financial assets1651 692
Other assets2 482588
Deferred tax asset2 1701 985
Total assets490 031462 767
Customer deposits391 341377 518
Other financial liabilities12 21813 545
Current Income tax liability864269
Other liabilities2 8102 568
Debt securities issued4 0104 010
Subordinated debt securities17 56317 537
Total liabilities428 806415 447
Share capital961903
Share premium23 86515 908
Statutory reserve capital9088
Other reserves1 4381 463
Retained earnings34 87128 958
Total equity61 22547 320
Total liabilities and equity490 031462 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 3,800 active partners and 690,000 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