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) | ||||
| Q4 2020 | Q4 2019 | 12 months 2020 | 12 months 2019 | |
| Interest income based on EIR | 11 061 | 10 577 | 43 035 | 37 560 |
| Interest expense | -1 945 | -1 909 | -7 855 | -6 380 |
| Net interest income | 9 116 | 8 668 | 35 180 | 31 180 |
| Fee income | 551 | 278 | 1 362 | 965 |
| 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 value | 0 | 204 | 0 | 743 |
| Other operating income | 299 | 307 | 768 | 885 |
| Total net interest, fee and other income | 9 051 | 8 976 | 34 847 | 32 031 |
| 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 loans | 4 427 | 4 218 | 17 526 | 16 037 |
| Share of profit from subsidiaries and associates | 121 | 720 | 789 | 720 |
| Impairment losses on loans and advances | -2 317 | -1 204 | -11 546 | -6 049 |
| Profit before income tax | 2 231 | 3 734 | 6 769 | 10 708 |
| Income tax | -517 | -290 | -867 | -698 |
| Profit for the period | 1 714 | 3 444 | 5 902 | 10 010 |
| incl. shareholders of parent company | 1 714 | 3 444 | 5 902 | 10 010 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -24 | -135 | -219 | -53 |
| Total comprehensive income for the period | 1 690 | 3 309 | 5 683 | 9 957 |
| incl. shareholders of parent company | 1 690 | 3 309 | 5 683 | 9 957 |
| Consolidated statement of financial position (in thousands of euros) | ||
| 31/12/2020 | 31/12/2019 | |
| Assets | ||
| Due from central banks | 27 445 | 83 080 |
| Due from credit institutions | 19 784 | 20 655 |
| Investments in debt securities | 13 618 | 0 |
| Loans and advances | 402 212 | 338 157 |
| Investments in associates | 4 026 | 3 276 |
| Tangible assets | 833 | 840 |
| Right of use asset | 1 157 | 773 |
| Intangible assets | 16 139 | 11 721 |
| Other financial assets | 165 | 1 692 |
| Other assets | 2 482 | 588 |
| Deferred tax asset | 2 170 | 1 985 |
| Total assets | 490 031 | 462 767 |
| Liabilities | ||
| Customer deposits | 391 341 | 377 518 |
| Other financial liabilities | 12 218 | 13 545 |
| Current Income tax liability | 864 | 269 |
| Other liabilities | 2 810 | 2 568 |
| Debt securities issued | 4 010 | 4 010 |
| Subordinated debt securities | 17 563 | 17 537 |
| Total liabilities | 428 806 | 415 447 |
| Equity | ||
| Share capital | 961 | 903 |
| Share premium | 23 865 | 15 908 |
| Statutory reserve capital | 90 | 88 |
| Other reserves | 1 438 | 1 463 |
| Retained earnings | 34 871 | 28 958 |
| Total equity | 61 225 | 47 320 |
| Total liabilities and equity | 490 031 | 462 767 |
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
merit.arva@inbank.ee
+372 553 3550
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Tallinn, ESTONIA