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Inbank Unaudited Financial Results for Q4 and Full Year 2020

Inbank
·5-min read

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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