Inbank unaudited financial results for Q3 and 9 months 2024

• Loan and rental portfolio increased by 14.2% year-on-year, reaching 1.11 billion euros. The deposit portfolio grew by 14% compared to a year ago, totaling 1.16 billion euros. At the end of Q3, Inbank’s total assets stood at 1.43 billion euros.

• The Gross Merchandise Value (GMV) for the third quarter reached a record 184 million euros, which is 4% higher than the previous quarter and 1% compared to the previous year. Net interest income grew by 25% compared to last year, reflecting a strong underlying performance. 

• Auto marketplaces and dealers portfolio, now Inbank’s largest segment, increased in the third quarter by 42% year-on-year reaching 64 million euros of GMV. 

• All other product segments maintained similar GMV in the third quarter compared to last year, except for merchant solutions sales which decreased by 15% compared to last year, amounting to 61 million euros of GMV due to strategic repricing efforts in Poland and Lithuania. 

• Inbank’s retail portfolio Effective Interest Rate (EIR) continued to improve and reached in Q3 11.21% which is 0.41% higher than a year ago, driven by repricing efforts over the past two years. 

• In Q3, impairment losses were 1.5% of the loan portfolio. For the first nine months, the ratio stood at 1.5%, which is below Inbank’s long-term average. 

• By the end of Q3, Inbank had 881,000 active contracts and 6,200 active merchant partners.  

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

“During the third quarter, Inbank continued to deliver strong results and steady revenue growth. Inbank’s net interest income grew by 25% and total net income grew by 16% for the quarter compared to last year. Our Q3 revenue was negatively impacted by a 1.2 million euro fair value adjustment on financial instruments used to manage interest rate risks. During the first two quarters of the year, the company made a fair value gain on the same instruments.

Auto marketplaces and dealers financing continued to show very strong results during the third quarter, reaching 64 million euros of GMV, which is 42% more than a year ago, becoming now Inbank’s largest segment in terms of sales and portfolio. Sales results were stable across product segments showing similar sales volumes compared to last year. 

To support Inbank’s growth plans, Inbank raised 10.14 million euros of equity in August. The lead investor was Swedbank pension funds, and the round was supported by 52 investors in total. 

During the quarter, Inbank sold its 21% stake in financial technology start-up Paywerk to Swedbank AB. This transaction resulted in 0.7 million euros of extraordinary profit for the quarter. While Paywerk did not succeed as a stand-alone company, we are excited to see that the technology our team developed is valued by a leading regional retail bank.

During the third quarter, we launched the Smart Rent service for renting Apple products in iDeal stores in Lithuania, making the service now available in all three Baltic countries. We also started cooperation with the largest electronics retailer Datart in Czechia. 

Inbank’s financial performance has continued to improve throughout 2024. Although sudden changes in interest expectations resulted in weaker Q3 results, the current decline in the interest rate environment is expected to benefit our financial performance going forward. The superiority of our embedded finance solutions coupled with the declining interest rate environment will greatly support Inbank’s growth ambitions in the upcoming quarters and years.”

Key financial indicators as of 30.09.2024 and for Q3

• Total assets EUR 1.43 billion

• Loan and rental portfolio EUR 1.11 billion

• Deposit portfolio EUR 1.16 billion

• Equity EUR 146.2 million

• Net profit EUR 3.1 million

• Return on equity 8.8%