Inbank unaudited financial results for Q1 2024

In Q1 2024 Inbank earned a consolidated net profit of 4.0 million euros increasing 114% year-on-year. The return on equity in Q1 was 12.6%.

• Inbank’s loan and rental portfolio increased by 23% compared to Q1 2023 reaching 1.05 billion euros. The deposit portfolio grew 29% and reached 1.11 billion euros by the end of Q1. At the end of Q1 2024, Inbank’s total assets stood at 1.34 billion euros.
• The Gross Merchandise Value (GMV) during the first quarter was 162 million euros, which is 5% more than a year ago. In terms of product segments, car finance continued to show especially strong results with 45 million euros of GMV, which is 39% more than a year ago. The GMV of green finance was stable at 20 million euros. All other product segments had slightly lower sales volumes than a year ago. Rental services were 13 million euros, which is a 6% decrease compared to a year ago. Direct lending sales decreased by 4% to 20 million euros and merchant solutions by 6% to 65 million euros. 
• By the end of Q1, the number of active contracts reached 896,000. At the end of Q1, Inbank reached 5,800 active partners.

Priit Põldoja, Chairman of the Management Board, comments on the results:

“Inbank begins 2024 with a steady improvement in financial performance. Our total net income grew by 30% compared to the same quarter a year ago, while our operating expenses grew by 16%. Impairment losses remained at the same level as a year ago, while loan and rental portfolios grew by 23%.

Sales results were seasonally lower, but on a year-on-year basis quite stable in all markets. GMV in CEE was up 11% with improving sales in Czechia, while Baltic sales remained at 2023 levels on the back of weak macroeconomic conditions.

Despite facing challenging economic conditions over the last two years, our loan impairment losses have remained low. Impairment losses in the first quarter were impressive, standing at 1.35% of the average loan portfolio.

During the first quarter, Inbank started cooperating with Pigu Group, the largest e-commerce player in the Baltics. We also bolstered our cooperation with leading Baltic payment service providers to extend our products to an increasing number of small and medium sized online merchants. As a result, Inbank reached a total of 5,800 merchants at the end Q1 2024.

As 2024 progresses, Inbank continues to navigate through a challenging external environment. However, there are many reasons to be optimistic. The Polish economy is demonstrating an impressive resilience and the Baltic economies are projected to start growing again during the second half of 2024. Financial markets are expecting a more accommodative monetary policy from the European Central Bank for the remainder of the year, which will likely result in a continuous trend of lower funding cost for Inbank.”

Key financial indicators as of 31.03.2024 and for Q1: 

Total assets EUR 1.34 billion
Loan and rental portfolio EUR 1.05 billion
Deposit portfolio EUR 1.11 billion
Equity EUR 128.2 million
Net profit EUR 4.0 million
Return on equity 12.6%

Consolidated income statement (in thousands of euros)

	Q1 2024	Q1 2023 restated	3 months 2024	3 months 2023 restated
Interest income based on EIR	28 768	21 503	28 768	21 503
Interest expense	-13 612	-9 379	-13 612	-9 379
Net interest income	15 156	12 124	15 156	12 124
Fee and commission income	111	123	111	123
Fee and commission expenses	-1 186	-938	-1 186	-938
Net fee and commission income/expenses	-1 075	-815	-1 075	-815
Income from rental services	7 149	5 237	7 149	5 237
Sale of assets previously rented to customers	4 583	2 914	4 583	2 914
Other operating income	339	96	339	96
Cost of rental services	-4 789	-3 508	-4 789	-3 508
Cost of assets sold previously rented to customers	-4 350	-2 583	-4 350	-2 583
Net operating income/expenses	2 932	2 156	2 932	2 156
Net gains/losses from financial assets measured at fair value	890	-57	890	-57
Foreign exchange rate gain/losses	-339	83	-339	83
Net gain/losses from financial items	551	26	551	26
Total net interest, fee and other income and expenses	17 564	13 491	17 564	13 491
Personnel expenses	-4 771	-4 037	-4 771	-4 037
Marketing expenses	-633	-798	-633	-798
Administrative expenses	-2 838	-2 407	-2 838	-2 407
Depreciations, amortization	-1 756	-1 394	-1 756	-1 394
Total operating expenses	-9 998	-8 636	-9 998	-8 636
Share of profit from associates	0	33	0	33
Impairment losses on loans and advances	-3 199	-3 129	-3 199	-3 129
Profit before income tax	4 367	1 759	4 367	1 759
Income tax	-403	92	-403	92
Profit for the period	3 964	1 851	3 964	1 851
Other comprehensive income that may be reclassified subsequently to profit or loss
Currency translation differences	20	-45	20	-45
Total comprehensive income for the period	3 984	1 806	3 984	1 806

Consolidated statement of financial position (in thousands of euros)

	31.03.2024	31.12.2023	31.03.2023 restated
Assets
Cash and cash equivalents	179 842	172 921	96 801
Mandatory reserves at central banks	22 857	21 020	16 750
Investments in debt securities	31 507	33 581	23 052
Financial assets measured at fair value through profit or loss	920	79	0
Loans and advances	957 695	942 056	794 569
Investments in associates	204	141	1 098
Other financial assets	3 802	5 268	2 512
Tangible assets	76 916	75 206	54 017
Right of use assets	25 677	26 716	22 961
Intangible assets	31 659	30 906	27 270
Other assets	8 886	8 185	7 792
Deferred tax assets	4 569	4 505	3 481
Total assets	1 344 534	1 320 584	1 050 303
Liabilities
Customer deposits	1 106 167	1 081 566	857 013
Financial liabilities measured at fair value through profit or loss	0	50	20
Other financial liabilities	55 774	60 927	54 490
Current tax liability	457	311	47
Deferred tax liability	283	204	106
Other liabilities	3 991	3 691	4 089
Subordinated debt securities	49 654	49 745	30 581
Total liabilities	1 216 326	1 196 494	946 346
Equity
Share capital	1 086	1 086	1 026
Share premium	43 563	43 563	31 855
Statutory reserve	103	103	100
Other reserves	1 697	1 543	1 529
Retained earnings	81 759	77 795	69 447
Total equity	128 208	124 090	103 957
Total liabilities and equity	1 344 534	1 320 584	1 050 303

Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with 5,800 merchants, Inbank has 896,000+ active contracts and collects deposits across 8 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.

Additional information:
Merit Arva
Head of Communications
[e-mail]
[phone]

Attachment

• Inbank_Interim_Report_2024_Q1