Inbank Reports Impressive Growth in Financial Performance
Inbank's Stellar Financial Performance in Recent Quarters
Inbank has achieved significant milestones in its Q2 2025 financial results, showcasing dynamic growth and resilience in a fluctuating market. The bank reported a remarkable originated volume of 196 million euros, marking a 15% increase from the previous year. Although consolidated net profit saw a slight decline to 3.6 million euros compared to the same period last year, the profit for the first half of 2025 rose 5% to 8.1 million euros, highlighting a robust performance.
Growing Revenues and Key Financial Metrics
Inbank's total net income for the second quarter reached 20.7 million euros, an increase of 8.4% year-on-year. The income derived from core activities, which excludes financial and other ancillary income, saw a healthy 15.3% growth, rising to 21.1 million euros, up from 18.3 million euros from the prior year. Operating expenses also increased to 11.6 million euros, reflecting a 7.1% rise. This cost management has allowed Inbank to improve its cost/income ratio down to 55.9% for this quarter.
Additionally, the strong performance of Inbank was significantly driven by a high demand for green financing products, particularly in Poland, and record direct lending activities across all markets the bank operates in.
Impressive Growth in Specific Segments
A key highlight of both Q2 2025 and the first half of the year was the impressive growth in green financing, which surged 86% year-on-year, reaching 36.9 million euros. Moreover, direct lending increased by a remarkable 44%, amounting to 32.1 million euros. The merchant solutions segment contributed substantially to Inbank’s overall performance, achieving sales of 66.5 million euros, a 3% increase. Car financing exhibited signs of resilience with a total volume of 47.1 million euros, despite being slightly 10% lower compared to last year. Rental services showed a significant rebound, delivering 13.1 million euros, which is 25% higher compared to the previous year.
Asset and Loan Portfolio Expansion
The loan and rental portfolio at Inbank amassed to 1.21 billion euros, reflecting an 11.2% growth year-on-year, while the customer deposit portfolio expanded by 4.9% to 1.23 billion euros. Notably, Inbank's total assets as of the end of Q2 stood at 1.5 billion euros, showcasing a steady 5% growth annually.
Strategic Focus and Market Share Enhancement
Priit Põldoja, the CEO of Inbank, commented on the results by emphasizing their strategic growth approach, which maintains a disciplined outlook. He noted that while Inbank reached a record-high originated volume, continuous exploration of new niches, particularly in the €50 billion Polish consumer finance market, is crucial for sustainable profitability. He pointed out that Inbank has successfully extended its market share across the Baltics, achieving a noteworthy 20.3% share in consumer lending in Estonia. As interest rates decrease, margins are likely to improve, fostering further growth opportunities.
Product Diversification and New Offerings
Inbank is not only expanding geographically but is also focused on enhancing its suite of product offerings. Recently, the bank introduced payment protection insurance in Latvia and Lithuania, completing its coverage in the Baltic region. This aims to bolster the range of fee-based products available to its vast customer base, which is a strategic priority for the organization.
Strengthening Governance and Leadership
Inbank has also been proactive in enhancing its governance structure by appointing Erkki Raasuke as the independent Chairman of the Supervisory Board and adding new board members, including Isabel Faragalli, a debt capital markets expert, and Sergei Anikin, a seasoned technology leader. This strengthened board is expected to facilitate Inbank's strategic growth in embedded finance across Europe.
Key Financial Indicators Summary
As of June 30, 2025:
Total assets: 1.50 billion euros
Loan and rental portfolio: 1.21 billion euros
Customer deposits: 1.23 billion euros
Total equity: 156 million euros
Net profit: 3.6 million euros
Return on equity: 9.3%
Inbank continues to be a rising player in the financial technology space with its unique embedded finance platform, linking merchants, consumers, and financial institutions. With a strong emphasis on eco-friendly financing products and a solid growth trajectory, Inbank is poised to capitalize on future market opportunities.
For more information regarding Inbank, please reach out to:\
Styv Solovjov
AS Inbank
Head of Investor Relations
+372 5645 9738
styv.solovjov@inbank.ee
Frequently Asked Questions
What are Inbank's financial results for Q2 2025?
In Q2 2025, Inbank recorded 196 million euros in originated volume and a net profit of 3.6 million euros.
How did Inbank's income from core activities perform in Q2?
Inbank's income from core activities grew by 15.3% to 21.1 million euros in Q2 2025.
What strategic areas is Inbank focusing on for growth?
Inbank aims to expand its market share in the Baltic region and explore opportunities in the Polish consumer finance market.
Who are some of the new members of Inbank's Supervisory Board?
The new members include Erkki Raasuke as independent Chairman, Isabel Faragalli, and Sergei Anikin.
What is Inbank's total asset value as of June 30, 2025?
As of June 30, 2025, Inbank's total assets amounted to 1.5 billion euros.
About The Author
Contact Owen Jenkins privately here. Or send an email with ATTN: Owen Jenkins as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.