Inbank announces Q2 2019 comprehensive income of 2.27 EURm and H1 2019 comprehensive income of 4.29 EURm.
Inbank continued on a strong growth trajectory across all four of its home markets in H1 2019 with credit product sales increasing by 49%. Poland, with its nearly 7x growth contributed by almost half towards Inbank’s total growth. The group loan portfolio increased by 54.7%, reaching 275.6 EURm and the deposit portfolio by 71.3% to 272.8 EURm.
Estonia contributed 45.7 EURm to the group credit product sales, Lithuania, Latvia and Poland respectively 43.3 EURm, 24.2 EURm and 20.6 EURm. Year-on-year sales growth in Poland was 588%, 37% in Estonia, 32% in Latvia and 23% in Lithuania.
Commenting on the positive results, Inbank CEO Jan Andresoo said, ’The strong results of Q2 and H1 reflected our expectations. Compared to the same period a year ago, the sales growth is nearly 50% and we are particularly pleased with the performance in Poland. These results are indicative of the positive and effective dynamics we have been working towards for a while now.’
Inbank’s Q2 and H1 2019 comprehensive income was, respectively, 2.27 EURm and 4.29 EURm. The 2018 results were 0.88 EURm and 4.79 EURm. ’It should be noted that the numbers have been affected by one-off events such as the revaluation of Coop Pank shares in the amount of 0.3 EURm and the effect of recognized deferred tax asset attributable to previous periods in the amount of 0.3 EURm,’ said Andresoo.
The most significant focus points of H1 highlighted by Andresoo were product development and innovation in addition to the highly promising partnership with payment services facilitator PayU in Poland. He added that the main focus of Inbank’s product development continues to be simplifying commerce and helping Inbank’s partners sell more. The whole organisation is dedicated to being able to introduce some new solutions as early as at the end of this year. ’The other notable development, our partnership with PayU, has ensured that our services are now available to 40 million Polish consumers via thousands of e-commerce merchants,’ he added.
Andresoo also highlighted the ongoing brand launch preparations in Lithuania as a key development, adding that all relevant information has been shared with the Estonian FSA.
’We acquired Mokilizingas last year and established ourselves in the Lithuanian market. Preparations for phase two - launching the Inbank brand- are now under way. This step gives us an additional market for acquiring deposits and diversifying our financing channels,’ said Andresoo.
Q2 also saw Inbank make a strategic decision to commence with the sales process of its 7.94% stake in Coop Pank AS – Inbank plans to invest this capital in its international growth and development.
Key financial indicators (30th of June 2019):
· Balance Sheet 338.2EURm
· Loan Portfolio 275.6EURm
· Deposit Portfolio 272.8EURm
· Comprehensive Income 4.29EURm
· Total Equity 40.66EURm
· Return on Equity 22.5%
| Condensed consolidated statement of profit and loss and other comprehensive income | |||||
| EURt | |||||
| Q2 2019 | H1 2019 | Q2 2018 | H1 2018 | ||
| Interest income | 8,974 | 17,129 | 4,909 | 8,706 | |
| Interest expense | -1,396 | -2,786 | -827 | -1,398 | |
| Net interest income | 7,578 | 14,343 | 4,082 | 7,308 | |
| Fee income | 228 | 432 | 174 | 335 | |
| Fee expense | -427 | -802 | -196 | -350 | |
| Net fee and commission income | -199 | -370 | -22 | -15 | |
| Net gains from financial assets measured at fair value | 266 | 266 | 0 | 1,204 | |
| Other operating income | 308 | 553 | 91 | 175 | |
| Total net interest, fee and other income | 7,953 | 14,792 | 4,151 | 8,672 | |
| Personnel expenses | -2,041 | -3,897 | -1,314 | -2,525 | |
| Marketing expenses | -778 | -1,169 | -345 | -471 | |
| Administrative expenses | -931 | -1,730 | -566 | -1,032 | |
| Depreciations, amortisation | -302 | -579 | -93 | -160 | |
| Total operating expenses | -4,052 | -7,375 | -2,318 | -4,188 | |
| Profit before profit from associates and impairment losses on loans | 3,901 | 7,417 | 1,833 | 4,484 | |
| Share of profit from associates | 0 | 0 | 0 | 1,986 | |
| Impairment losses on loans and advances | -1,752 | -2,947 | -987 | -1,839 | |
| Profit before income tax | 2,149 | 4,470 | 846 | 4,631 | |
| Income tax | 174 | -125 | -55 | 48 | |
| Profit for the period | 2,323 | 4,345 | 791 | 4,679 | |
| Other comprehensive income/loss | |||||
| Items that may be reclassified subsequently to profit or loss | |||||
| Currency translation differences | -50 | -51 | 90 | 110 | |
| Total comprehensive income for the period | 2,273 | 4,294 | 881 | 4,789 | |
| Net profit attributable to | |||||
| Shareholders of parent company | 2,323 | 4,345 | 788 | 4,673 | |
| Non-controlling interest | 0 | 0 | 3 | 6 | |
| Profit for the reporting period | 2,323 | 4,345 | 791 | 4,679 | |
| Total comprehensive income/loss is attributable to | |||||
| Shareholders of parent company | 2,273 | 4,294 | 878 | 4,783 | |
| Non-controlling interest | 0 | 0 | 3 | 6 | |
| Total comprehensive income for the reporting period | 2,273 | 4,294 | 881 | 4,789 | |
| Condensed consolidated statement of financial position | |||||
| EURt | |||||
| 30.06.2019 | 31.12.2018 | ||||
| Assets | |||||
| Cash in hand | 4 | 4 | |||
| Due from central banks | 25,402 | 64,620 | |||
| Due from credit institutions | 19,458 | 13,700 | |||
| Financial assets at fair value through profit and loss | 5,187 | 4,600 | |||
| Loans and advances | 275,582 | 225,639 | |||
| Investments in associates | 97 | 97 | |||
| Tangible assets | 672 | 545 | |||
| Right of use asset | 862 | 0 | |||
| Intangible assets | 9,138 | 7,697 | |||
| Other financial assets | 72 | 64 | |||
| Other assets | 511 | 514 | |||
| Deferred tax asset | 1,235 | 564 | |||
| Total assets | 338,220 | 318,044 | |||
| Loan from credit institution | 0 | 10,429 | |||
| Customer deposits | 272,839 | 240,175 | |||
| Other financial liabilities | 9,020 | 8,776 | |||
| Other liabilities | 2,146 | 2,654 | |||
| Debt securities issued | 4,009 | 10,017 | |||
| Subordinated debt securities | 9,543 | 9,528 | |||
| Total liabilities | 297,557 | 281,579 | |||
| Equity | |||||
| Share capital | 874 | 874 | |||
| Share premium | 15,053 | 15,053 | |||
| Statutory reserve capital | 88 | 79 | |||
| Other reserves | 1,373 | 1,401 | |||
| Retained earnings | 23,275 | 19,018 | |||
| Total equity attributable to the shareholders of parent company | 40,663 | 36,425 | |||
| Non-controlling interest | 0 | 40 | |||
| Total equity | 40,663 | 36,465 | |||
| Total liabilities and equity | 338,220 | 318,044 | |||
Inbank is a consumer finance focused digital bank active in the Baltics and Poland with additional deposits accepted in Germany, Austria and Holland. Inbank has over 1,500 active partners and 500,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.
For further information please contact:
Kärri Brewster-Palts
Inbank AS
Head of Group Marketing
karri.brewster-palts@inbank.ee
00372 5565 5500
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