Financial Results of Inbank AS for Q2 2019

Inbank continued on a strong growth trajectory across all four of its home markets in H1 2019 with credit product sales increasing by 49%. Poland, with its nearly 7x growth contributed by almost half towards Inbank’s total growth. The group loan portfolio increased by 54.7%, reaching 275.6 EURm and the deposit portfolio by 71.3% to 272.8 EURm.

Estonia contributed 45.7 EURm to the group credit product sales, Lithuania, Latvia and Poland respectively 43.3 EURm, 24.2 EURm and 20.6 EURm. Year-on-year sales growth in Poland was 588%, 37% in Estonia, 32% in Latvia and 23% in Lithuania. Commenting on the positive results, Inbank CEO Jan Andresoo said, ’The strong results of Q2 and H1 reflected our expectations. Compared to the same period a year ago, the sales growth is nearly 50% and we are particularly pleased with the performance in Poland. These results are indicative of the positive and effective dynamics we have been working towards for a while now.’

Inbank’s Q2 and H1 2019 comprehensive income was, respectively, 2.27 EURm and 4.29 EURm. The 2018 results were 0.88 EURm and 4.79 EURm. ’It should be noted that the numbers have been affected by one-off events such as the revaluation of Coop Pank shares in the amount of 0.3 EURm and the effect of recognized deferred tax asset attributable to previous periods in the amount of 0.3 EURm,’ said Andresoo.

The most significant focus points of H1 highlighted by Andresoo were product development and innovation in addition to the highly promising partnership with payment services facilitator PayU in Poland. He added that the main focus of Inbank’s product development continues to be simplifying commerce and helping Inbank’s partners sell more. The whole organisation is dedicated to being able to introduce some new solutions as early as at the end of this year. ’The other notable development, our partnership with PayU, has ensured that our services are now available to 40 million Polish consumers via thousands of e-commerce merchants,’ he added.

Andresoo also highlighted the ongoing brand launch preparations in Lithuania as a key development, adding that all relevant information has been shared with the Estonian FSA. ’We acquired Mokilizingas last year and established ourselves in the Lithuanian market. Preparations for phase two - launching the Inbank brand- are now under way. This step gives us an additional market for acquiring deposits and diversifying our financing channels,’ said Andresoo.

Q2 also saw Inbank make a strategic decision to commence with the sales process of its 7.94% stake in Coop Pank AS – Inbank plans to invest this capital in its international growth and development.

Key financial indicators of Inbank as at 31 March 2019

  • Balance Sheet 338.2EURm
  • Loan Portfolio 275.6EURm
  • Deposit Portfolio 272.8EURm
  • Comprehensive Income 4.29EURm
  • Total Equity 40.66EURm
  • Return on Equity 22.5%

Inbank is a consumer finance focused digital bank active in the Baltics and Poland with additional deposits accepted in Germany, Austria and Holland. Inbank has over 1,500 active partners and 500,000 active contracts. Inbank bonds are listed on the Nasdaq Baltic Stock Exchange.

Inbank’s report for the first six months of 2019 is available here.