Inbank Unaudited Financial Results for Q4 and Full Year 2021
In Q4 2021 Inbank earned a net profit of 2.9 million euros and the 2021 annual profit reached 11.0 million euros. The annual profit grew by 86% and return on equity was 15.6%.
- Inbank’s loan portfolio increased by 50% annually reaching 605 million euros. At the same time, the deposit portfolio grew 58%, reaching 618 million euros at year-end.
- Total sales for Q4 was 141 million euros showing an increase of 58% compared to Q4 of the previous year. Growth was driven by the Polish business unit that has increased its sales by 119% and contributed 67 million euros to total sales.
- Annual total sales for 2021 was 498 million euros showing an increase of 66% compared to 2020. Growth was driven by sales finance, which amounted to almost 359 million euros or 74% more than a year earlier. Of the markets, Poland grew the fastest as expected, with sales volumes increasing 150% to 230 million euros.
- The Q4 net profit increased by 71% to 2.9 million euros compared to 1.7 million euros reported in Q4 2020. The annual net profit for 2021 was 11 million euros, which is 86% more than in 2020.
- By the end of 2021, Inbank had 804,000 active contracts and more than 4600 active partners.
Priit Põldoja, Chairman of the Management Board, comments on the results:
‘In the fourth quarter, we successfully continued our partner-based sales strategy and once again broke previous sales records. Strong sales growth shows that consumer confidence continues to grow and financing volumes are exceeding pre-Covid levels.
Inbank made its largest ever profit of 11 million euros in 2021, which is nearly twice more than the previous year. We have found a new equilibrium with our business model and will enter 2022 with somewhat lower margins and better risk profile, while continuing our rapid growth.
Overall, we are very happy with 2021 results. In another difficult year, Inbank managed to grow its business by more than half. We put our foot firmly down in the Polish market and decided to expand into the Czech market. We continued to invest in both technology and new ventures. We improved profitability, strengthened our capital base and expanded our international organisation to 290 people in five countries.’
Key financial indicators 31.12.2021
Total assets EUR 787.0 million
Loan portfolio EUR 604.8 million
Deposit portfolio EUR 617.9 million
Total equity EUR 79.0 million
Net profit EUR 11.0 million
Return on equity 15.6%
Consolidated income statement (in thousands of euros)
| Q4 2021 | Q4 2020 | 12 months 2021 | 12 months 2020 | |
| Interest income based on EIR | 13 179 | 11 061 | 48 038 | 43 035 |
| Interest expense | -2 598 | -1 945 | -9 590 | -7 855 |
| Net interest income | 10 581 | 9 116 | 38 448 | 35 180 |
| Fee income | 661 | 551 | 2 200 | 1 362 |
| Fee expense | -810 | -915 | -3 117 | -2 463 |
| Net fee and commission income | -149 | -364 | -917 | -1 101 |
| Other operating income | 5 786 | 299 | 19 347 | 768 |
| Other operating expense | -3 839 | 0 | -13 833 | 0 |
| Total net interest, fee and other income | 12 379 | 9 051 | 43 045 | 34 847 |
| Personnel expenses | -3 093 | -2 199 | -11 623 | -9 207 |
| Marketing expenses | -1 003 | -556 | -2 829 | -1 557 |
| Administrative expenses | -2 318 | -1 162 | -6 627 | -4 223 |
| Depreciations, amortisation | -939 | -707 | -3 360 | -2 334 |
| Total operating expenses | -7 353 | -4 624 | -24 439 | -17 321 |
| Profit before profit from associates and impairment losses on loans | 5 026 | 4 427 | 18 606 | 17 526 |
| Share of profit from subsidiaries and associates | 72 | 121 | 335 | 789 |
| Impairment losses on loans and advances | -1 671 | -2 317 | -6 668 | -11 546 |
| Profit before income tax | 3 427 | 2 231 | 12 273 | 6 769 |
| Income tax | -490 | -517 | -1 310 | -867 |
| Profit for the period | 2 937 | 1 714 | 10 963 | 5 902 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | 0 | 0 | 0 | 0 |
| Currency translation differences | 42 | -24 | -59 | -219 |
| Total comprehensive income for the period | 2 979 | 1 690 | 10 904 | 5 683 |
Consolidated statement of financial position (in thousands of euros)
| 31.12.2021 | 31.12.2020 | |
| Assets | ||
| Due from central banks | 77 453 | 27 445 |
| Due from credit institutions | 17 870 | 19 784 |
| Investments in debt securities | 7 684 | 13 618 |
| Loans and advances | 604 848 | 402 212 |
| Investments in associates | 774 | 4 026 |
| Tangible assets | 19 147 | 833 |
| Right of use asset | 25 231 | 1 157 |
| Intangible assets | 22 423 | 16 139 |
| Other financial assets | 1 972 | 1 350 |
| Other assets | 2 948 | 1 297 |
| Deferred tax asset | 2 401 | 2 170 |
| Assets held for sale | 4 203 | 0 |
| Total assets | 786 954 | 490 031 |
| Liabilities | ||
| Customer deposits | 617 857 | 391 341 |
| Other financial liabilities | 49 188 | 12 218 |
| Current tax liability | 284 | 864 |
| Deferred tax liability | 125 | 0 |
| Other liabilities | 3 296 | 2 810 |
| Debt securities issued | 0 | 4 010 |
| Subordinated debt securities | 37 187 | 17 563 |
| Total liabilities | 707 937 | 428 806 |
| Equity | ||
| Share capital | 997 | 961 |
| Share premium | 30 436 | 23 865 |
| Statutory reserve capital | 96 | 90 |
| Other reserves | 1 625 | 1 438 |
| Retained earnings | 45 863 | 34 871 |
| Total equity | 79 017 | 61 225 |
| Total liabilities and equity | 786 954 | 490 031 |
Inbank is a consumer finance focused digital bank active in the Baltics, Poland, and the Czechia with additional deposits accepted in Germany, Austria, the Netherlands and Finland. Inbank has over 4,600 active partners and 804,000 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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