In Q2 2023 Inbank earned a consolidated net profit of 2.7 million euros increasing 3% year-on-year. The 2023 half-year net profit was 4.5 million euros, which is 18% less than the year before. The return on equity in Q2 was 10.2%.
- Inbank’s loan and subscription portfolio increased by 30% compared to Q2 2022 reaching 937.4 million euros. The deposit portfolio grew 36% and reached 965.7 million euros by the end of Q2. At the end of Q2 2023, Inbank’s total assets stood at 1.17 billion euros.
- Inbank gross merchandise value (GMV) during the first quarter was 183.6 million euros, which is 31% more than a year ago and nearly 30 million euros more than during Q1 2023. GMV through our merchant solutions grew by 5% reaching 74.1 million. The strongest growth was recorded by our car finance business, where GMV grew 65% to 41.9 million euros. Green finance sales recovered strongly to 27.9 million euros which is a 135% increase from the low of Q2 2022. Subscription solutions also showed strong annual growth of 32%, reaching 15 million euros, while direct lending GMV grew 14% and reached 24.7 million.
- By the end of Q2, Inbank had 5,400 active partners and the number of active contracts reached 891,000.
Priit Põldoja, Chairman of the Management Board, comments on the results:
‘Once again Inbank sales results broke record levels, with the best-ever sales result in the Baltics and a strong recovery in Poland. We also started to see some early results from the Czech market. In combination with a growing credit portfolio and a slower increase in funding costs, Inbank also reached a record quarterly income of 14.9 million euros. After a rather challenging 18 months of rising rates and geopolitical instability, Inbank quarterly profit is on the rise again with 2.7 million euros.
At the end of May, Inbank issued 11.1 million euros of Additional Tier 1 (AT1) bonds at a 12% interest rate. The issue was nearly twice oversubscribed from the original target by 55 individual and institutional investors. AT1 bonds strengthened the Inbank capital base and our total capital ratio at the end of the second quarter reached 15.1%.
In June 2023, Inbank signed an agreement to acquire an additional 12.7% stake in the full-service vehicle rental company Mobire Group. As a result, Inbank owns 65.7% of the company. We believe that there will be profound changes in how cars will be sold and owned in the future. By increasing the stake in Mobire, Inbank is able to participate in these changes more directly, and therefore offer better products to our wide range of partners and customers.
The higher interest rate environment has been a headwind for Inbank financial performance over the last 18 months. Nevertheless, we have chosen to invest in our growth. We have successfully entered the Czech market and are launching a range of new products this year, including a subscription service for mobiles, tablets, laptops and e-bikes. We continue our 12th consecutive year as a profitable company while navigating severe market changes and unprecedented external events.
We remain confident that the superiority of our products and digital processes will provide the biggest competitive advantage over the longer term. Judging by our record sales and gains in market share during the last 12 months, we feel that the strength of our embedded finance platform will enable Inbank not only to win in existing markets but also to challenge new European markets.’
Key financial indicators as of 30.06.2023 and for Q2
Total assets EUR 1.17 billion
Loan and subscription portfolio EUR 937.4 million
Deposit portfolio EUR 965.7 million
Total equity EUR 106.5 million
Net profit EUR 2.7 million
Return on equity 10.2%
| Consolidated income statement (in thousands of euros) | ||||
| Q2 2023 | Q2 2022 | 6 months 2023 | 6 months 2022 | |
| Interest income based on EIR | 22 986 | 14 937 | 43 590 | 28 758 |
| Interest expense | -10 947 | -3 817 | -20 326 | -6 764 |
| Net interest income | 12 039 | 11 120 | 23 264 | 21 994 |
| Fee and commission income | 1 205 | 826 | 2 328 | 1 531 |
| Fee and commission expenses | -1 174 | -789 | -2 213 | -1 591 |
| Net fee and commission income/expenses | 31 | 37 | 115 | -60 |
| Net gains from financial assets measured at fair value | 23 | 342 | -34 | 158 |
| Foreign exchange rate losses | 205 | -226 | 288 | -253 |
| Net losses from financial items | 228 | 116 | 254 | -95 |
| Other operating income | 9 701 | 6 746 | 17 948 | 12 643 |
| Other operating expenses | -7 128 | -4 923 | -13 219 | -9 035 |
| Total net interest, fee and other income and expenses | 14 871 | 13 096 | 28 362 | 25 447 |
| Personnel expenses | -4 134 | -3 476 | -8 171 | -6 748 |
| Marketing expenses | -867 | -783 | -1 665 | -1 346 |
| Administrative expenses | -2 711 | -2 071 | -5 118 | -3 859 |
| Depreciations, amortisation | -1 578 | -1 094 | -2 972 | -2 103 |
| Total operating expenses | -9 290 | -7 424 | -17 926 | -14 056 |
| Profit before profit from associates and impairment losses on loans | 5 581 | 5 672 | 10 436 | 11 391 |
| Share of profit from associates | 361 | -82 | 394 | -140 |
| Impairment losses on loans and advances | -3 485 | -3 087 | -6 614 | -5 660 |
| Profit before income tax | 2 457 | 2 503 | 4 216 | 5 591 |
| Income tax | 218 | 108 | 310 | -39 |
| Profit for the period | 2 675 | 2 611 | 4 526 | 5 552 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -291 | -61 | -336 | 35 |
| Total comprehensive income for the period | 2 384 | 2 550 | 4 190 | 5 587 |
| Consolidated statement of financial position (in thousands of euros) | |||
| 30.06.2023 | 31.12.2022 | 30.06.2022 | |
| Assets | |||
| Due from central banks | 126 344 | 126 990 | 79 484 |
| Due from credit institutions | 9 650 | 18 345 | 13 442 |
| Investments in debt securities | 31 269 | 8 415 | 8 994 |
| Financial assets designated at fair value through profit or loss | 7 | 37 | 153 |
| Loans and advances | 873 513 | 755 100 | 673 566 |
| Investments in associates | 209 | 1 065 | 816 |
| Assets classified as held for sale | 0 | 0 | 4 203 |
| Other financial assets | 5 113 | 3 387 | 2 350 |
| Tangible assets | 62 536 | 48 533 | 34 368 |
| Right of use assets | 22 345 | 23 247 | 25 354 |
| Intangible assets | 28 318 | 26 249 | 24 265 |
| Other assets | 10 504 | 5 961 | 6 690 |
| Deferred tax assets | 3 973 | 3 166 | 2 764 |
| Total assets | 1 173 781 | 1 020 495 | 876 449 |
| Liabilities | |||
| Customer deposits | 965 692 | 828 894 | 708 727 |
| Financial liabilities designated at fair value through profit or loss | 4 | 0 | 0 |
| Other financial liabilities | 56 114 | 55 240 | 49 417 |
| Current tax liability | 0 | 0 | 95 |
| Deferred tax liability | 103 | 187 | 73 |
| Other liabilities | 3 583 | 3 680 | 2 871 |
| Subordinated debt securities | 41 799 | 30 570 | 30 540 |
| Total liabilities | 1 067 295 | 918 571 | 791 723 |
| Equity | |||
| Share capital | 1 026 | 1 026 | 997 |
| Share premium | 31 855 | 31 855 | 30 436 |
| Statutory reserve | 103 | 100 | 100 |
| Other reserves | 1 384 | 1 421 | 1 782 |
| Retained earnings | 72 118 | 67 522 | 51 411 |
| Total equity | 106 486 | 101 924 | 84 726 |
| Total liabilities and equity | 1 173 781 | 1 020 495 | 876 449 |
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 871,000+ 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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