Inbank unaudited financial results for Q1 2025
In Q1 2025 Inbank earned a consolidated net profit of 4.5 million euros, increasing 14% year-on-year. The return on equity (ROE) in Q1 stood at 12.3%.
- In Q1 2025, Inbank’s total net income reached 20.7 million euros, reflecting an 18% increase compared to the same period last year, driven by consistently improving margins and portfolio growth across both CEE and the Baltics regions. Total operating expenses amounted to 11.1 million euros, which is an 11% increase year-on-year. As a result, Inbank’s cost-income ratio improved to 53.5% for the quarter.
- Inbank’s originated volume (OV) for the first quarter reached 166 million euros, which is 6% more than a year ago.
- Green financing in Poland grew strongly by 67% compared to a year ago and reached 33 million euros during the quarter. Merchant solutions remained the largest segment with 59.3 million euros in originated volume, but declined 7% compared to a year ago due to a strategic exit from lower-margin partners in Poland. Car financing recorded a 4% decrease year-on-year to 40.2 million euros, impacted by the newly introduced car tax in Estonia, which also contributed to a 2% decrease year-on-year in rental volumes to 11.6 million euros. Direct lending continued on a growth path, increasing 9% to 21.8 million euros.
- The loan and rental portfolio reached 1.18 billion euros increasing 11% year-on-year, while the deposit portfolio grew by 15% to 1.27 billion euros. As of the end of Q1, Inbank’s total assets stood at 1.5 billion euros growing 13% year-on-year.
- Inbank’s impairments on loans and receivables remained within the company’s target range, accounting for 1.54% of the average loan and rental portfolio.
- By the end of Q1, the number of active customer contracts reached 941,000 and 5,600 active partners, following the company’s strategic decision to exit lower-margin merchants.
Priit Põldoja, Chief Executive Officer, comments on the results:
“With a few challenging years behind us, Inbank is seeing steady improvement across its financial indicators. Key metrics such as return on equity, total income margin and cost-income ratio have shown consistent progress compared to the last three years and this positive trend is expected to continue. To improve profitability, we have found a better balance between the pace of growth and margin expansion. As of the end of Q1, Inbank’s total assets have surpassed 1.5 billion euros, and equity has exceeded 150 million euros. Remarkably, it was just nine quarters ago that we crossed the 1 billion euros and 100 million euro thresholds, respectively.
Looking ahead, our improving financial performance and stronger capital base enable us to focus more intently on delivering value to our partners and end-customers. Inbank’s key competitive advantage lies in our broad partner network accompanied by the fastest, most convenient and automated loan origination and credit underwriting capabilities. Going forward we continue to focus on building on our strengths to grow our market position and profitability.”
Key financial indicators as of 31.03.2025
Total assets EUR 1.52 billion
Loan and rental portfolio EUR 1.18 billion
Customer deposits EUR 1.13 billion
Total equity EUR 152 million
Net profit EUR 4.5 million
Return on equity 12.3%
Consolidated income statement (in thousands of euros)
| Q1 2025 | Q1 2024 | 3 months 2025 | 3 months 2024 | |
| Interest income calculated using effective interest method | 31,273 | 28,768 | 31,273 | 28,768 |
| Interest expense | -13,313 | -13,612 | -13,313 | -13,612 |
| Net interest income | 17,960 | 15,156 | 17,960 | 15,156 |
| Fee and commission income | 7 | 111 | 7 | 111 |
| Fee and commission expenses | -1,232 | -1,186 | -1,232 | -1,186 |
| Net fee and commission income/expenses | -1,225 | -1,075 | -1,225 | -1,075 |
| Rental income | 9,149 | 7,149 | 9,149 | 7,149 |
| Sale of assets previously rented to customers | 3,961 | 4,583 | 3,961 | 4,583 |
| Other operating income | 11 | 339 | 11 | 339 |
| Depreciation of rental assets | -4,262 | -3,331 | -4,262 | -3,331 |
| Other operating expenses | -1,683 | -1,458 | -1,683 | -1,458 |
| Cost of assets sold previously rented to customers | -3,643 | -4,350 | -3,643 | -4,350 |
| Net rental income/expenses | 3,533 | 2,932 | 3,533 | 2,932 |
| Net gains/losses from financial assets measured at fair value | 444 | 890 | 444 | 890 |
| Foreign exchange rate gain/losses | 19 | -339 | 19 | -339 |
| Net gain/losses from financial items | 463 | 551 | 463 | 551 |
| Total net income | 20,731 | 17,564 | 20,731 | 17,564 |
| Personnel expenses | -5,610 | -4,771 | -5,610 | -4,771 |
| Marketing expenses | -853 | -633 | -853 | -633 |
| Administrative expenses | -2,962 | -2,838 | -2,962 | -2,838 |
| Depreciation, amortization | -1,663 | -1,756 | -1,663 | -1,756 |
| Total operating expenses | -11,088 | -9,998 | -11,088 | -9,998 |
| Share of profit from associates | ||||
| Impairment losses on loans and receivables | -4,470 | -3,199 | -4,470 | -3,199 |
| Profit before income tax | 5,173 | 4,367 | 5,173 | 4,367 |
| Income tax expense | -642 | -403 | -642 | -403 |
| Profit for the period | 4,531 | 3,964 | 4,531 | 3,964 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -107 | 20 | -107 | 20 |
| Total comprehensive income for the period | 4,424 | 3,984 | 4,424 | 3,984 |
Consolidated statement of financial position (in thousands of euros)
| 31.03.2025 | 31.12.2024 | |
| Assets | ||
| Cash and cash equivalents | 218,356 | 153,191 |
| Mandatory reserves at central banks | 26,042 | 25,156 |
| Investments in debt securities | 47,063 | 46,724 |
| Financial assets measured at fair value through profit or loss | 103 | 27 |
| Loans and receivables | 1,059,208 | 1,041,542 |
| Other financial assets | 5,309 | 4,569 |
| Tangible fixed assets | 100,263 | 98,069 |
| Right of use assets | 19,775 | 20,551 |
| Intangible assets | 32,022 | 31,560 |
| Other assets | 9,532 | 9,718 |
| Deferred tax assets | 4,973 | 4,707 |
| Total assets | 1,522,646 | 1,435,814 |
| Liabilities | ||
| Customer deposits | 1,267,247 | 1,171,359 |
| Financial liabilities measured at fair value through profit or loss | 120 | 503 |
| Other financial liabilities | 56,531 | 59,135 |
| Current tax liability | 320 | 62 |
| Deferred tax liability | 660 | 533 |
| Other liabilities | 4,798 | 4,620 |
| Subordinated debt securities | 40,896 | 52,046 |
| Total liabilities | 1,370,572 | 1,288,258 |
| Equity | ||
| Share capital | 1,152 | 1,152 |
| Share premium | 54,849 | 54,849 |
| Statutory reserve | 109 | 109 |
| Other reserves | 1,316 | 1,329 |
| Retained earnings | 94,648 | 90,117 |
| Total equity | 152,074 | 147,556 |
| Total liabilities and equity | 1,522,646 | 1,435,814 |
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 more than 5,600 merchants, Inbank has 941,000+ active contracts and collects deposits across 7 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Styv Solovjov
AS Inbank
Head of Investor Relations
+372 5645 9738
styv.solovjov@inbank.ee
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