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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