Inbank’s consolidated profit for the first half-year of 2018 was 4.8 million euros. The deposits portfolio grew 114 per cent year-on-year, the loan portfolio by 130 per cent and the balance sheet volume by 131 per cent.

For Inbank, the most important event in the first half-year was the acquisition of UAB Mokilizingas, the Lithuanian hire purchase company. The price of the transaction was 15 million euros. Inbank acquired 100 per cent of the company’s shares.

Jan Andresoo, the Chairman of Inbank’s Management Board, said the transaction was a logical step considering Inbank’s international growth strategy. “The acquisition of Mokilizingas enabled us to start operating on the Lithuanian hire-purchase market and to enter into a fruitful cooperation with more than 2,000 partner companies. Building this kind of a network from the ground up would have been very resource-intensive if not impossible,” Andresoo said.

As a result of the acquisition of Mokilizingas, Inbank’s credit portfolio increased by 67.4 million euros, reaching 178.1 million euros by the end of the first half of the year.

Both Inbank and Mokilizingas strongly increased their sales figures in annual comparison. The comparative growth of business volumes was 61.4 per cent year-over-year. “In Q1 of 2018, we sold 18.9 million euros worth of credit products, but in June alone, sales totalled 17.5 million euros. Our June sales in Lithuania even surpassed our Estonian sales,” Andresoo said. Sales volume in the second quarter was 49 million euros.

In the second quarter, Inbank introduced two new products. In cooperation with the website auto24.ee, Inbank started offering a product called auto24 liising to finance purchases of vehicles between 15,000 and 25,000 euros. “Compared to traditional leasing products, the process of buying a vehicle is simpler: comprehensive insurance and down payment are not obligatory and the car becomes the property of the purchaser upon acquisition,“ said Andresoo. In addition, Inbank started offering renovation loan, which can be used to finance costs related to renovation and furnishing up to 10,000 euros in value.

Inbank’s Latvian company showed stable growth in sales figures, with its profit reaching 409 thousand euros in the first half-year. In Poland, efforts continued to grow the business through new partners.

The annual risk assessment process (ICAAP) took place in Q2. The Financial Supervision Authority found that the general risk level has dropped since last year, and as a result the bank was assigned a lower compulsory equity level.

Key financial indicators as at 30 June 2018

  • Balance sheet volume 238.2 million euros
  • Loan portfolio 178.1 million euros
  • Volume of deposits 159.3 million euros
  • Total comprehensive income 4.8 million euros
  • Equity 31.9 million euros

Condensed consolidated statement of profit and loss and other comprehensive income

EURt        
  Q2 2018 6 months 2018 Q2 2017 6 months 2017
         
Interest income 4 909 8 706 3 061 5 996
Interest expense -827 -1 398 -492 -976
Net interest income 4 082 7 308 2 569 5 020
         
Fee income 174 335 129 254
Fee expense -196 -350 -144 -284
Net fee and commission income -22 -15 -15 -30
         
Net gains from financial assets measured at fair value 0 1 204 0 0
Other operating income 91 175 179 395
         
Total net interest, fee and other income 4 151 8 672 2 733 5 385
         
Personnel expenses -1 314 -2 525 -994 -1 879
Marketing expenses -345 -471 -380 -488
Administrative expenses -566 -1 032 -354 -708
Depreciations, amortisation -93 -160 -55 -104
Total operating expenses -2 318 -4 188 -1 783 -3 179
         
Profit before impairment losses on loans 1 833 4 484 950 2 206
         
Share of profit from associates 0 1 986 4 797 5 065
Impairment losses on loans and advances -987 -1 839 -805 -1 731
Profit before income tax 846 4 631 4 942 5 540
         
Income tax -55 48 93 151
Profit for the period 791 4 679 5 035 5 691
         
Other comprehensive income/loss        
Items that may be reclassified subsequently to profit or loss        
Unrealised foreign exchange gains/losses 90 110 3 -13
Total comprehensive income for the period 881 4 789 5 038 5 678
         
Profit is attributable to        
Owners of the parent 788 4 673 5 050 5 718
Non-controlling interest 3 6 -16 -28
Profit for the reporting period 791 4 679 5 034 5 690
         
Total comprehensive income/loss is attributable to        
Owners of the parent 878 4 783 5 054 5 706
Non-controlling interest 3 6 -16 -28
Total comprehensive income for the reporting period 881 4 789 5 038 5 678

Condensed consolidated statement of financial position

EURt    
  30.06.2018 31.12.2017
     
     
Assets    
Cash in hand 4 4
Due from central banks, including mandatory reserve 36 135 14 767
Due from credit institutions 9 709 8 530
Financial assets at fair value through profit and loss 4 600 0
Loans and advances to customers 178 100 92 895
Investments in associates 97 7 806
Tangible assets 537 279
Intangible assets 6 938 816
Other financial assets 44 61
Other assets 1 521 459
Deferred tax asset 555 364
Total assets 238 240 125 981
     
     
Loan from credit institution 22 942 0
Customer deposits 159 264 95 056
Other financial liabilities 6 096 1 263
Other liabilities 1 539 1 136
Debt securities issued 10 018 0
Subordinated debt securities 6 485 6 480
Total liabilities 206 344 103 935
     
Equity    
Share capital 874 782
Share premium 15 053 9 068
Statutory reserve capital 79 79
Other reserves 1 472 1 352
Retained earnings 14 386 10 739
Total equity attributable to the shareholders of parent company 31 864 22 020
Non-controlling interest 32 26
Total equity 31 896 22 046
     
Total liabilities and equity 238 240 125 981

Operating as a bank since 2015, Inbank provides service through its online banking platform and network of partners. Inbank operates on the Estonian, Latvian, Lithuanian and Polish consumer financing market. In addition, Inbank raises international deposits on the German and Austrian market.

Additional information: Jan Andresoo Inbank AS Chairman of the Management Board +372 50 84 184 jan.andresoo@inbank.ee

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