Inbank Unaudited Financial Results for Q1 2023
In Q1 2023 Inbank earned a consolidated net profit of 1.9 million euros decreasing 37% year-on-year. The return on equity was 7.3%.
- Inbank’s loan and subscription portfolio increased by 26% compared to Q1 2022 reaching 856 million euros. The deposit portfolio grew 27% and reached 857 million euros by the end of Q1. At the end of Q1 2023, Inbank’s total assets stood at 1.05 billion euros.
- Gross merchandise value (GMV) during the first quarter was 155 million euros, which is 14% more than a year ago. GMV through our merchant solutions grew by 15% reaching 68 million. The strongest growth was recorded by our car finance business, where GMV grew 65% to 32 million euros. Subscriptio solutions also showed strong annual growth of 29%, reaching 13 million euros, while direct lending GMV grew 20% and reached 21 million. Because of higher interest rates and regulatory changes in Poland, green finance sales decreased by 31% to 20 million euros.
- By the end of Q1, the number of active contracts reached 872,000 and active partners exceeded 5,400.
Priit Põldoja, Chairman of the Management Board, comments on the results:
‘Despite high inflation and higher interest rates, consumer spending and credit behaviour have remained surprisingly strong. In the first quarter of 2023 Inbank reported all-time high sales results and the best-ever quarterly income.
While higher interest rates have put pressure on our performance and profitability, Inbank has been winning in the marketplace. Despite a more challenging pricing environment our partners and customers have chosen to trust Inbank and even though we have been pickier about the business we are doing, we continue to grow at high speed.
We are likely to face some economic headwinds during the rest of 2023 of which we are mindful. However, we also know that our business model is resilient and we continue to invest in growing our embedded finance platform and international presence.
At the same time, we continue to see good opportunities for Inbank to grow in our current markets and beyond. To support our ambitions, Inbank’s shareholder meeting elected Erkki Raasuke as a Supervisory Board member and chair of its Audit Committee in March. With nearly 30 years of banking experience, he has held executive positions in several financial institutions such as Swedbank, LHV and Luminor in the Baltics. He will bring a wealth of experience and knowledge to Inbank Supervisory Board.’
Key financial indicators as of 31.03.2023 and for Q1
Total assets EUR 1.05 billion
Loan and subscription portfolio EUR 856.3 million
Deposit portfolio EUR 857.0 million
Total equity EUR 104.0 million
Net profit EUR 1.9 million
Return on equity 7.3%
| Consolidated income statement (in thousands of euros) | ||||
| Q1 2023 | Q1 2022 | 3 months 2023 | 3 months 2022 | |
| Interest income based on EIR | 20 604 | 13 821 | 20 604 | 13 821 |
| Interest expense | -9 379 | -2 947 | -9 379 | -2 947 |
| Net interest income | 11 225 | 10 874 | 11 225 | 10 874 |
| Fee and commission income | 1 123 | 705 | 1 123 | 705 |
| Fee and commission expenses | -1 039 | -802 | -1 039 | -802 |
| Net fee and commission income/expenses | 84 | -97 | 84 | -97 |
| Net gains from financial assets measured at fair value | -57 | -184 | -57 | -184 |
| Foreign exchange rate losses | 83 | -27 | 83 | -27 |
| Net losses from financial items | 26 | -211 | 26 | -211 |
| Other operating income | 8 247 | 5 897 | 8 247 | 5 897 |
| Other operating expenses | -6 091 | -4 112 | -6 091 | -4 112 |
| Total net interest, fee and other income and expenses | 13 491 | 12 351 | 13 491 | 12 351 |
| Personnel expenses | -4 037 | -3 272 | -4 037 | -3 272 |
| Marketing expenses | -798 | -563 | -798 | -563 |
| Administrative expenses | -2 407 | -1 788 | -2 407 | -1 788 |
| Depreciations, amortisation | -1 394 | -1 009 | -1 394 | -1 009 |
| Total operating expenses | -8 636 | -6 632 | -8 636 | -6 632 |
| Profit before profit from associates and impairment losses on loans | 4 855 | 5 719 | 4 855 | 5 719 |
| Share of profit from associates | 33 | -58 | 33 | -58 |
| Impairment losses on loans and advances | -3 129 | -2 573 | -3 129 | -2 573 |
| Profit before income tax | 1 759 | 3 088 | 1 759 | 3 088 |
| Income tax | 92 | -147 | 92 | -147 |
| Profit for the period | 1 851 | 2 941 | 1 851 | 2 941 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -45 | 96 | -45 | 96 |
| Total comprehensive income for the period | 1 806 | 3 037 | 1 806 | 3 037 |
| Consolidated statement of financial position (in thousands of euros) | |||
| 31.03.2023 | 31.12.2022 | 31.03.2022 | |
| Assets | |||
| Due from central banks | 107 717 | 126 990 | 89 709 |
| Due from credit institutions | 5 834 | 18 345 | 17 565 |
| Investments in debt securities | 23 052 | 8 415 | 8 425 |
| Financial assets designated at fair value through profit or loss | 0 | 37 | 0 |
| Loans and advances | 794 569 | 755 100 | 639 653 |
| Investments in associates | 1 098 | 1 065 | 716 |
| Assets classified as held for sale | 0 | 0 | 4 203 |
| Other financial assets | 2 512 | 3 387 | 3 207 |
| Tangible assets | 54 017 | 48 533 | 25 982 |
| Right of use assets | 22 961 | 23 247 | 25 943 |
| Intangible assets | 27 270 | 26 249 | 23 224 |
| Other assets | 7 792 | 5 961 | 4 653 |
| Deferred tax assets | 3 481 | 3 166 | 2 601 |
| Total assets | 1 050 303 | 1 020 495 | 845 881 |
| Liabilities | |||
| Customer deposits | 857 013 | 828 894 | 676 918 |
| Financial liabilities designated at fair value through profit or loss | 20 | 0 | 184 |
| Other financial liabilities | 54 490 | 55 240 | 46 203 |
| Current tax liability | 47 | 0 | 167 |
| Deferred tax liability | 106 | 187 | 89 |
| Other liabilities | 4 089 | 3 680 | 3 173 |
| Subordinated debt securities | 30 581 | 30 570 | 37 041 |
| Total liabilities | 946 346 | 918 571 | 763 775 |
| Equity | |||
| Share capital | 1 026 | 1 026 | 997 |
| Share premium | 31 855 | 31 855 | 30 436 |
| Statutory reserve | 100 | 100 | 100 |
| Other reserves | 1 529 | 1 421 | 1 773 |
| Retained earnings | 69 447 | 67 522 | 48 800 |
| Total equity | 103 957 | 101 924 | 82 106 |
| Total liabilities and equity | 1 050 303 | 1 020 495 | 845 881 |
Inbank is a financial technology company with an EU banking licence that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with 5,400+ merchants, Inbank has 872,000+ 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
merit.arva@inbank.ee
+372 553 3550
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