In Q2 2023 Inbank earned a consolidated net profit of 2.7 million euros increasing 3% year-on-year. The 2023 half-year net profit was 4.5 million euros, which is 18% less than the year before. The return on equity in Q2 was 10.2%.

  • Inbank’s loan and subscription portfolio increased by 30% compared to Q2 2022 reaching 937.4 million euros. The deposit portfolio grew 36% and reached 965.7 million euros by the end of Q2. At the end of Q2 2023, Inbank’s total assets stood at 1.17 billion euros.

  • Inbank gross merchandise value (GMV) during the first quarter was 183.6 million euros, which is 31% more than a year ago and nearly 30 million euros more than during Q1 2023. GMV through our merchant solutions grew by 5% reaching 74.1 million. The strongest growth was recorded by our car finance business, where GMV grew 65% to 41.9 million euros. Green finance sales recovered strongly to 27.9 million euros which is a 135% increase from the low of Q2 2022. Subscription solutions also showed strong annual growth of 32%, reaching 15 million euros, while direct lending GMV grew 14% and reached 24.7 million.

  • By the end of Q2, Inbank had 5,400 active partners and the number of active contracts reached 891,000.

Priit Põldoja, Chairman of the Management Board, comments on the results:

‘Once again Inbank sales results broke record levels, with the best-ever sales result in the Baltics and a strong recovery in Poland. We also started to see some early results from the Czech market. In combination with a growing credit portfolio and a slower increase in funding costs, Inbank also reached a record quarterly income of 14.9 million euros. After a rather challenging 18 months of rising rates and geopolitical instability, Inbank quarterly profit is on the rise again with 2.7 million euros.

At the end of May, Inbank issued 11.1 million euros of Additional Tier 1 (AT1) bonds at a 12% interest rate. The issue was nearly twice oversubscribed from the original target by 55 individual and institutional investors. AT1 bonds strengthened the Inbank capital base and our total capital ratio at the end of the second quarter reached 15.1%.

In June 2023, Inbank signed an agreement to acquire an additional 12.7% stake in the full-service vehicle rental company Mobire Group. As a result, Inbank owns 65.7% of the company. We believe that there will be profound changes in how cars will be sold and owned in the future. By increasing the stake in Mobire, Inbank is able to participate in these changes more directly, and therefore offer better products to our wide range of partners and customers.

The higher interest rate environment has been a headwind for Inbank financial performance over the last 18 months. Nevertheless, we have chosen to invest in our growth. We have successfully entered the Czech market and are launching a range of new products this year, including a subscription service for mobiles, tablets, laptops and e-bikes. We continue our 12th consecutive year as a profitable company while navigating severe market changes and unprecedented external events.

We remain confident that the superiority of our products and digital processes will provide the biggest competitive advantage over the longer term. Judging by our record sales and gains in market share during the last 12 months, we feel that the strength of our embedded finance platform will enable Inbank not only to win in existing markets but also to challenge new European markets.’

Key financial indicators as of 30.06.2023 and for Q2

  • Total assets EUR 1.17 billion

  • Loan and subscription portfolio EUR 937.4 million

  • Deposit portfolio EUR 965.7 million

  • Total equity EUR 106.5 million

  • Net profit EUR 2.7 million

  • Return on equity 10.2%

The full report can be found: