Inbank's Steady Growth and Profitability Amid Challenging Macroeconomic Conditions

Inbank, a leading financial technology company with an EU banking license, has reported impressive financial results for the second quarter of 2024, showcasing its resilience and adaptability in the face of a challenging macroeconomic environment. The company's consolidated net profit grew by 41% year-on-year, reaching 3.8 million euros, while its half-year net profit surged by 71% to 7.7 million euros. Inbank's return on equity in Q2 stood at a robust 11.6%, demonstrating its ability to generate strong returns for its shareholders.

Powering Ahead: Inbank's Resilient Performance in Uncertain Times

Expanding Loan and Rental Portfolio, Bolstering Deposit Base

Inbank's loan and rental portfolio experienced a 15% year-on-year increase, reaching 1.08 billion euros, while its deposit portfolio grew by an impressive 22% to 1.18 billion euros. This growth in both lending and deposits reflects the company's ability to attract and retain customers, even in a challenging economic climate. With total assets standing at 1.42 billion euros at the end of Q2, Inbank continues to solidify its position as a leading player in the financial technology sector.

Navigating Shifts in Product Segments

The Gross Merchandise Value (GMV) for the second quarter was 178 million euros, a 3% decrease compared to the same period a year ago, but a 10% increase from the previous quarter. Merchant solutions remained the largest segment, with a Q2 GMV of 65 million euros. Car finance, a key product segment, showed strong results with a GMV of 56 million euros, a 32% increase year-on-year. However, the GMV of green finance decreased by 19% compared to a year ago, reaching 23 million euros. Direct lending sales and rental services also experienced declines of 10% and 19%, respectively.

Maintaining Disciplined Credit Risk Management

Inbank's impairment losses were 1.7% of the loan portfolio in Q2, while the ratio for the first 6 months of the year stood at 1.5%. This demonstrates the company's commitment to prudent credit risk management, ensuring the quality of its loan portfolio and mitigating potential losses. Priit Põldoja, Chairman of the Management Board, expressed confidence in Inbank's ability to keep its credit costs within the target of 1.6%, citing the strong employment levels and easing inflation in its markets.

Expanding Reach and Innovating Product Offerings

By the end of Q2, Inbank had 895,000 active contracts and 6,100 active merchant partners, showcasing its growing customer base and merchant network. The company has been actively investing in its growth in the Czech market, where quarterly GMV more than doubled compared to a year ago, reaching over 10 million euros for the first time. Additionally, Inbank plans to bring its innovative electronics rental product to all its markets by the end of 2024, further diversifying its product portfolio and enhancing its value proposition to customers.

Balancing Financial Performance and Long-Term Competitiveness

Priit Põldoja, the Chairman of the Management Board, highlighted Inbank's ability to navigate the challenging macroeconomic environment by demonstrating discipline in repricing its products and focusing on operational efficiency. As a result, the company's margins have started to improve, and its cost-income ratio is moving towards the 50% mark. Inbank's management team has been focused on striking a balance between delivering improving financial results and continuing to invest in the company's long-term competitiveness, positioning it for future growth opportunities.