In 2018, Inbank earned its largest profit, 9.3 million euros, and increased its loan and deposit portfolios by almost 1.5 times. Sales volumes increased in all four home markets and the efficiency of the company and credit quality of the bank improved as well.
In 2018, Inbank’s consolidated profit increased to 9.3 million euros which was 25.3% more than a year before. The profit of the Estonian unit was 8.2 million, in Latvia 1.4 million, and the profit earned in seven months in Lithuania was 1.3 million euros. In 2018, the loss in Poland was 1.9 million euros. Inbank’s balance sheet size increased from 126 million euros to 318 million euros in a year.
Inbank’s deposit portfolio increased by 153% in a year and reached 240.2 million euros by the end of the year. The loan portfolio increased by 143%, reaching 225.6 million euros. In Estonia, Latvia, Lithuania and Poland, Inbank sold credit products for 204 million euros, which was 60% more than in 2017.
According to Jan Andresoo, Chairman of the Management Board of Inbank, the last year was best described by increasing business volumes and organizational development. In addition, Inbank was able to fulfil all set objectives in all markets.
“Our balance sheet, loan and deposit portfolios, and number of people increased by several times, and at the same time, the credit cost decreased and the cost-income ratio improved,” said Andresoo. “In Estonia, we grew our credit portfolio’s market share by three percent to 16 percent among banks and rose to the second place by total consumer loans portfolio,” said Andresoo.
A significant part of Inbank’s growth was due to an acquisition of UAB Mokilizingas, a Lithuanian consumer financing company. “In Lithuania, compared to last year, the sales of credit products increased by 1.9 times to 103.5 million euros, and the credit portfolio increased by over 1.8 times to 89.3 million euros. This means that we were able to keep growing after the transaction,” Andresoo said.
In Latvia, the volume of Inbank’s loan portfolios increased by 1.4 times to almost 20 million euros, and new sales grew by almost two times to 16.4 million euros.
In Poland, Inbank grew its sales volumes by over two times to 12.2 million euros, compared to last year. “In the second half of the year, our Polish branch exceeded our Latvian company in terms of sales volume, and in December, the monthly sales in Poland rose already to more than 2.3 million euros,” said Andresoo.
This year, Inbank expects further growth in Lithuanian and Polish markets. Inbank plans to open a bank branch in Lithuania and launch banking products in the market. In Poland, the priority is given to increasing business volumes and achieving break-even. “In all markets, we are focusing on developing new attractive financing solutions and supporting our partners via various sales channels,” said Andresoo.
In 2018, Inbank sold 10% of shares of Coop Pank AS and 25.9% of shares of Veriff OÜ. By these transactions, Inbank gained extraordinary profit in the amount of 3.2 million euros.
Key financial figures as of 31 December 2018
Consolidated statement of profit and loss and other comprehensive income
| EURt | ||
| 2018 | 2017 | |
| Interest income | 23 633 | 13 023 |
| Interest expense | -3 760 | -2 009 |
| Net interest income | 19 873 | 11 014 |
| Fee income | 703 | 551 |
| Fee expense | -1 091 | -607 |
| Net fee and commission income | -388 | -56 |
| Net gains from financial assets measured at fair value | 1 204 | 0 |
| Other operating income | 666 | 705 |
| Total net interest, fee and other income | 21 355 | 11 663 |
| Personnel expenses | -5 795 | -3 997 |
| Marketing expenses | -1 592 | -929 |
| Administrative expenses | -2 814 | -1 602 |
| Depreciations, amortisation | -445 | -215 |
| Total operating expenses | -10 646 | -6 743 |
| Profit before profit from associates and impairment losses on loans | 10 709 | 4 920 |
| Share of profit from associates | 1 986 | 6 203 |
| Impairment losses on loans and advances | -2 686 | -3 532 |
| Profit before income tax | 10 009 | 7 591 |
| Income tax | -733 | -92 |
| Profit for the period | 9 276 | 7 499 |
| Other comprehensive income/loss | ||
| Items that may be reclassified subsequently to profit or loss | ||
| Currency translation differences | 73 | -38 |
| Total comprehensive income for the period | 9 349 | 7 461 |
| Net profit attributable to | ||
| Shareholders of parent company | 9 262 | 7 496 |
| Non-controlling interest | 14 | 3 |
| Profit for the reporting period | 9 276 | 7 499 |
| Total comprehensive income/loss is attributable to | ||
| Shareholders of parent company | 9 335 | 7 458 |
| Non-controlling interest | 14 | 3 |
| Total comprehensive income for the reporting period | 9 349 | 7 461 |
Consolidated statement of financial position
| EURt | ||
| 31.12.2018 | 31.12.2017 | |
| Assets | ||
| Cash in hand | 4 | 4 |
| Due from central banks | 64 620 | 14 767 |
| Due from credit institutions | 13 700 | 8 530 |
| Financial assets at fair value through profit and loss | 4 600 | 0 |
| Loans and advances | 225 639 | 92 895 |
| Investments in associates | 97 | 7 806 |
| Tangible assets | 545 | 279 |
| Intangible assets | 7 697 | 816 |
| Other financial assets | 64 | 61 |
| Other assets | 514 | 459 |
| Deferred tax asset | 564 | 364 |
| Total assets | 318 044 | 125 981 |
| Liabilities | ||
| Loan from credit institutions | 10 429 | 0 |
| Customer deposits | 240 175 | 95 056 |
| Other financial liabilities | 8 776 | 1 263 |
| Other liabilities | 2 654 | 1 136 |
| Debt securities issued | 10 017 | 0 |
| Subordinated debt securities | 9 528 | 6 480 |
| Total liabilities | 281 579 | 103 935 |
| Equity | ||
| Share capital | 874 | 782 |
| Share premium | 15 053 | 9 068 |
| Statutory reserve capital | 79 | 79 |
| Other reserves | 1 401 | 1 352 |
| Retained earnings | 19 018 | 10 739 |
| Total equity attributable to the shareholders of parent company | 36 425 | 22 020 |
| Non-controlling interest | 40 | 26 |
| Total equity | 36 465 | 22 046 |
| Total liabilities and equity | 318 044 | 125 981 |
The Estonian version of the annual report is attached to this announcement. The English version will be published via a stock announcement on 8 March 2019.
Inbank started its banking activities in 2015 and provides financial services through internet bank and partner network. Inbank is active in Estonian, Latvian, Lithuanian and Polish consumer financing markets. In addition, international deposits are gathered from German and Austrian markets.
Additional information
Jan Andresoo
Inbank AS
Chairman of the Management Board
+372 508 4184
jan.andresoo@inbank.ee
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