Inbank's Q1 2025 Financial Highlights: Growth and Future Vision
Inbank Reports Strong Q1 2025 Financial Performance
In the first quarter of 2025, Inbank achieved a consolidated net profit of 4.5 million euros, marking a 14% increase compared to the previous year. The return on equity (ROE) stood at 12.3%, indicating robust growth.
Income and Expense Overview
Inbank's total net income for Q1 2025 reached 20.7 million euros, reflecting an impressive 18% year-over-year increase. This growth was primarily driven by enhanced margins and strong portfolio development across Central and Eastern Europe (CEE) and the Baltics. Operating expenses grew to 11.1 million euros, which is an 11% rise year-on-year. Consequently, Inbank improved its cost-income ratio to 53.5% for this quarter.
Volume and Financing Growth
The originated volume (OV) for the first quarter stood at 166 million euros, a 6% increase from the same quarter last year. Notably, green financing in Poland surged by 67%, reaching 33 million euros during this quarter. However, the merchant solutions segment, which remains the largest, saw a 7% decline to 59.3 million euros, largely due to a strategic withdrawal from lower-margin partners in Poland.
Portfolio Developments
Inbank's loan and rental portfolio reached an impressive 1.18 billion euros, an increase of 11% year-over-year. The deposit portfolio also saw a significant boost, growing 15% to 1.27 billion euros. By the end of Q1 2025, Inbank's total assets amounted to 1.5 billion euros, showing a 13% rise compared to the previous year.
Customer Engagement and Impairments
After exiting lower-margin merchants, Inbank successfully increased the number of active customer contracts to 941,000 and engaged 5,600 active partners. Meanwhile, impairments on loans and receivables remained stable, accounting for 1.54% of the average loan and rental portfolio, aligning with the company's targets.
CEO’s Insights on Financial Progress
Priit Põldoja, Inbank's Chief Executive Officer, commented on the results, highlighting that after navigating several challenging years, the bank is witnessing consistent improvements in its financial health. Key indicators, including return on equity and total income margin, have shown steady progress over the past three years, and this trend is anticipated to continue.
Põldoja noted, "Our improved financial performance and strong capital base allow us to concentrate on creating value for our partners and customers. The competitive edge of Inbank lies in our extensive partner network and the efficiency of our automated loan origination and credit underwriting processes. We are committed to further strengthening our market position and profitability moving forward."
Financial Breakdown as of 31.03.2025
Key financial indicators include:
Total assets: EUR 1.52 billion
Loan and rental portfolio: EUR 1.18 billion
Customer deposits: EUR 1.13 billion
Total equity: EUR 152 million
Net profit: EUR 4.5 million
Return on equity: 12.3%
Consolidated Financial Statements
Inbank provided a consolidated income statement highlighting net interest income for Q1 2025 at 17.96 million euros, compared to 15.15 million euros in Q1 2024. Despite some fluctuations in fee and commission income, rental income also showed an increase, reinforcing the stability of Inbank's revenue streams.
A Vision for the Future
Inbank continues to innovate within the financial technology landscape, harnessing its European banking license to link merchants, consumers, and financial institutions on its advanced embedded finance platform. With over 5,600 merchant partnerships and 941,000 active contracts across seven markets in Europe, Inbank is poised for future growth. Its bonds are listed on the Nasdaq Tallinn Stock Exchange, reflecting its solid market position.
Contact Information
For additional information regarding this financial report, please contact:
Styv Solovjov
AS Inbank
Head of Investor Relations
+372 5645 9738
styv.solovjov@inbank.ee
Frequently Asked Questions
What were Inbank's total net profits for Q1 2025?
Inbank reported total net profits of 4.5 million euros in Q1 2025, which represents a 14% increase from the previous year.
How much did Inbank's total net income increase this quarter?
The total net income increased by 18%, reaching 20.7 million euros in Q1 2025 compared to the same quarter last year.
What is the current state of Inbank's loan and rental portfolio?
As of Q1 2025, Inbank's loan and rental portfolio stands at 1.18 billion euros, showing an 11% increase year-on-year.
What strategic changes did Inbank make regarding partnerships?
Inbank strategically exited lower-margin merchant partners, which impacted its partnerships but aimed to improve overall profitability.
How does Inbank plan to achieve future financial growth?
Inbank aims to enhance its market position and profitability by focusing on its strengths in automated loan origination and a broad partner network.
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