Inbank’s Record-Breaking Q2 2025 Financial Results
In the second quarter of 2025, Inbank achieved remarkable sales, achieving an originated volume of 196 million euros, a notable rise of 15% from the previous year. During this period, the financial technology company reported a consolidated net profit of 3.6 million euros, marking a slight decline of 6% year-on-year. Meanwhile, the net profit for the first half of 2025 reached 8.1 million euros, reflecting a 5% increase compared to the same timeframe last year. Furthermore, the return on equity stood at 9.3% for Q2, while for the first half of 2025, it was recorded at 10.8%.
Growth in Key Financial Metrics
Inbank's total net income for the second quarter reached 20.7 million euros, showcasing an increase of 8.4% from a year earlier. The revenue from core activities, excluding financial and other income, surged by 15.3%, rising to 21.1 million euros from 18.3 million euros in the prior year. The overall operating expenses for the quarter aggregated to 11.6 million euros, which translates to a 7.1% increase year-on-year. Notably, Inbank’s cost-to-income ratio showed improvement, landing at 55.9% for the quarter.
Remarkable Sales Performance
The driving force behind Inbank's strong performance in Q2 was the heightened demand for green financing products in various markets, particularly in Poland. The green financing segment witnessed an impressive growth of 86%, reaching 36.9 million euros during the quarter. Direct lending also saw substantial growth, up 44% to 32.1 million euros. Merchant solutions remained Inbank's largest segment, with sales hitting 66.5 million euros, marking a 3% increase. Additionally, car financing showed signs of recovery, with revenues reaching 47.1 million euros, although still 10% lower than last year. Rental services contributed positively, delivering 13.1 million euros and achieving a 25% year-on-year increase.
Strengthening Asset Portfolios
Inbank's loan and rental portfolio expanded to 1.21 billion euros, up 11.2% from the previous year, while the deposit portfolio also saw growth of 4.9%, reaching 1.23 billion euros. By the close of Q2, Inbank's total assets were recorded at 1.5 billion euros, a 5% increase year-on-year.
Loan Impairments and Customer Growth
Loan impairment figures increased by 18.1% to 4.9 million euros, making up 1.64% of the average loan and rental portfolio, slightly surpassing the company's target. However, for the first half of the year, the impairments remained within the target at 1.59%. By the end of Q2, Inbank reported a count of 931,000 active customer contracts in conjunction with 5,700 active merchant partners.
Leadership Insights on Growth Strategy
Priit Põldoja, the CEO, commented on the financial results by acknowledging the steady growth Inbank has experienced throughout the first half of 2025. He mentioned the significant achievements in originating volume this quarter, indicating a likely continuation of this trend in subsequent quarters. He expressed confidence regarding Inbank’s expanding market share across the Baltics, with a notable 20.3% share in consumer lending in one of its key markets. As interest rates decline, it is anticipated that margins will continue to demonstrate improvement. However, the need to explore new market niches in the vast Polish consumer finance landscape is vital, particularly to complement its successful offerings like the solar panel financing business.
Expanding Product Offerings and Management Structure
Inbank remains committed to both geographical expansion and diversifying its product lines. Recently, it has successfully launched payment protection insurance across all Baltic states, solidifying its market presence. Additionally, the company has made new appointments to its Supervisory Board, including Erkki Raasuke as independent Chairman and welcomed seasoned professionals who will help steer the company towards achieving its strategic goals in embedded finance across Europe.
Key Financial Indicators Overview
As of June 30, 2025, the financial indicators are promising:
- Total assets: EUR 1.50 billion
- Loan and rental portfolio: EUR 1.21 billion
- Customer deposits: EUR 1.23 billion
- Total equity: EUR 156 million
- Net profit: EUR 3.6 million
- Return on equity: 9.3%
Inbank continues to push boundaries in the financial technology sector by connecting various stakeholders through their advanced embedded finance platform, proving a strong contender within the European market.
Frequently Asked Questions
What were Inbank's sales volumes in Q2 2025?
Inbank reported an originated volume of 196 million euros, which is a 15% increase from the previous year.
How much was Inbank's net profit for Q2 2025?
The net profit for Q2 2025 was 3.6 million euros, reflecting a 6% year-on-year decline.
What contributed to Inbank’s growth in Q2 2025?
The growth was primarily driven by high demand for green financing products, particularly in Poland, and increased direct lending.
What is Inbank’s market share in consumer lending?
By the end of the first half of 2025, Inbank achieved a 20.3% market share in consumer lending in Estonia.
What new product did Inbank launch recently?
Inbank launched payment protection insurance in Latvia and Lithuania, completing their product offering across all Baltic countries.
