In 2024, Inbank exhibited strong growth in total net income and net profit, and completed a landmark significant risk transaction (SRT) with the European Investment Bank Group (EIB).
- In 2024, total net income reached 75.5 million euros, increasing by 26% year-on-year, driven by expanding margins and growing portfolio volumes across both the Baltics and CEE regions.
- The consolidated net profit for the year amounted to 12.2 million euros, growing 20% year-on-year and return on equity (ROE) was 9%. These results were impacted by one-off items, including a 2.46 million euro cost from closing Inbank's credit card business, 1.34 million euros in capitalised growth advisory and capital raising fees, and extraordinary profit of 0.66 million euros from the sale of stake in financial technology start-up Paywerk. Excluding all these one-off items, Inbank's normalised net profit for the year grew by 51% year-on-year to 15.4 million euros, resulting in a normalised ROE of 11.3%.
- The loan and rental portfolio reached 1.15 billion euros increasing 11% year-on-year, while the deposit portfolio grew by 8% to 1.17 billion euros. At the end of 2024, Inbank's total assets stood at 1.44 billion euros growing 9% year-on-year.
- In 2024, Inbank reached a record sales volume of 715 million euros and the company's Gross Merchandise Value (GMV) grew by 4%.
- In 2024, Inbank's car finance portfolio became the largest product segment growing by 43% to 350 million euros. In terms of GMV the merchant solutions remain Inbank's largest sales engine, delivering 255 million euros of new volume. Buy-now-pay-later (BNPL) nearly tripled its sales year-on-year to 45 million euros, becoming a mainstream product among Baltic online merchants and PSPs.
- In 2024 Inbank increased the Effective Interest Rate (EIR) on the portfolio from 10.80% in 2023 to 11.28% in 2024. During the year, Inbank's funding cost slightly decreased to 4.40% compared to 4.46% a year earlier. As a result, total income margin reached 5.37%, a 23 basis point improvement from 2023.
- Despite high inflation and a higher interest rate burden for customers over the last couple of years, Inbank's credit quality has remained stable. The impairment losses to the average credit portfolio increased slightly to 1.65%, which is mostly related to changes in the company's provisioning methodology.
- By the end of 2024, Inbank had 872,000 active customer contracts and over 6,000 active retail partners.
Results for Q4 2024
- In Q4 2024, total net income reached a record 20.7 million euros increasing by 28% year-on-year.
- The net profit for Q4 declined to 1.4 million euros, which is lower 50% year-on-year, impacted by extraordinary expenses due to closure of credit card business and write-off of advisory fees. The quarterly ROE was 3.7%. However, normalized net profit, excluding one-off items, reached 4.4 million euros, demonstrating a 59% year-on-year growth. The quarterly normalized ROE was 11.9%.
- The GMV for Q4 reached 191 million euros, marking a 14% increase year-on-year. Quarterly sales growth was primarily driven by the car finance segment, which reached 58.1 million euros, marking a 46% year-on-year increase. Rental services, led by full-service car rentals, also showed strong growth, rising 36% to a quarterly GMV of 21.1 million euros. Merchant solutions remained Inbank's largest sales segment, with a GMV of 64.2 million euros, although declining 10% year-on-year.
- As a result of consistent repricing efforts, Inbank's loan portfolio EIR reached to 11.63%, compared to 10.83% a year ago. Also, as interest rates declined throughout the year, Inbank's Q4 funding cost decreased to 4.28% from 4.58% a year ago. Over the year, the company's margins improved by 70 basis points, with net interest margin rising to 5.77% and the total income margin, which includes rental business, reached 5.63%.
- In Q4, Inbank's impairment losses stood at 2.01%, primarily influenced by slight adjustments in impairment loss modeling methodology during Q3 and Q4. Despite these changes, the underlying portfolio quality remains stable, with no significant changes in the distribution of overdue days compared to previous periods.
Priit Põldoja, Chairman of the Management Board, comments on the results:
"Inbank closed 2024 with a record revenue and sales result. Our GMV for the fourth quarter ended on a strong note, reaching an all-time sales record of 191 million euros, marking a 14% increase year-on-year. We also achieved a record quarterly total income of 20.7 million euros, up 28% from the same period last year.
For the full year Inbank recorded a net profit of 12.2 million euros in 2024, which is 20% higher than a year earlier. These results include several one-off events which impacted our annual profit significantly. During the year we focused on improving margins and streamlined our product portfolio by exiting credit card business. Without one-off events Inbank profit increased by 51% to 15.4 million euros.
In November, Inbank signed a synthetic securitization transaction with the European Investment Bank Group (EIB). The 147 million euro deal was backed by Inbank's solar panel loans to private individuals in Poland, marking the first transaction of its kind in the Polish market. This initiative provided Inbank with 11 million euros in CET1 capital relief at the time of execution. Combined with the equity rise in August, Inbank has significantly strengthened its capital base to support future growth.
As a result of the work done during 2024, Inbank business is more focused, our organization is better aligned and our capital base is stronger entering 2025. In anticipation of a more favorable interest rate environment, and growing consumer confidence in our key markets, we remain committed to driving growth and improving our financial performance in coming years."
Key financial indicators as of 31.12.2024 and for Q4
Total assets EUR 1.44 billion
Loan and rental portfolio EUR 1.15 billion
Deposit portfolio EUR 1.17 billion
Total equity EUR 148 million
Net profit EUR 1.4 million
Return on equity 3.7%
Consolidated income statement (in thousands of euros)
| Q4 2024 | Q4 2023 | 12 months 2024 | 12 months 2023 | |
| Interest income calculated using effective interest method | 32,495 | 27,249 | 121,441 | 98,723 |
| Interest expense | -13,662 | -12,841 | -53,949 | -45,331 |
| Net interest income | 18,833 | 14,408 | 67,492 | 53,392 |
| Fee and commission income | 51 | 114 | 366 | 473 |
| Fee and commission expenses | -1,053 | -1,137 | -4,690 | -4,199 |
| Net fee and commission income/expenses | -1,002 | -1,023 | -4,324 | -3,726 |
| Rental income | 9,004 | 6,869 | 32,435 | 23,905 |
| Sale of assets previously rented to customers | 3,735 | 3,571 | 15,849 | 14,155 |
| Other operating income | -762 | 220 | 42 | 769 |
| Cost of rental services | -5,729 | -4,808 | -21,107 | -15,896 |
| Cost of assets sold previously rented to customers | -3,558 | -3,303 | -15,243 | -12,556 |
| Net rental income/expenses | 2,690 | 2,549 | 11,976 | 10,377 |
| Net gains/losses from financial assets measured at fair value | 186 | -90 | 9 | -14 |
| Foreign exchange rate gain/losses | -17 | 341 | 365 | 128 |
| Net gain/losses from financial items | 169 | 251 | 374 | 114 |
| Total net interest, fee and other income and expenses | 20,690 | 16,185 | 75,518 | 60,157 |
| Personnel expenses | -5,260 | -4,476 | -19,986 | -16,628 |
| Marketing expenses | -885 | -848 | -3,071 | -3,266 |
| Administrative expenses | -5,263 | -2,960 | -14,547 | -11,033 |
| Depreciations, amortization | -2,807 | -1,406 | -8,513 | -6,007 |
| Total operating expenses | -14,215 | -9,690 | -46,117 | -36,934 |
| Share of profit from associates | 0 | -72 | 663 | 250 |
| Impairment losses on loans and receivables | -5,197 | -3,235 | -16,355 | -13,203 |
| Profit before income tax | 1,278 | 3,188 | 13,709 | 10,270 |
| Income tax | 100 | -412 | -1,497 | -68 |
| Profit for the period | 1,378 | 2,776 | 12,212 | 10,202 |
| Other comprehensive income that may be reclassified subsequently to profit or loss | ||||
| Currency translation differences | -16 | -403 | -288 | -415 |
| Total comprehensive income for the period | 1,362 | 2,373 | 11,924 | 9,787 |
Consolidated statement of financial position (in thousands of euros)
| 12/31/24 | 12/31/23 | |
| Assets | ||
| Cash and cash equivalents | 153,191 | 172,921 |
| Mandatory reserves at central banks | 25,156 | 21,020 |
| Investments in debt securities | 46,724 | 33,581 |
| Financial assets measured at fair value through profit or loss | 27 | 79 |
| Loans and receivables | 1,041,542 | 942,056 |
| Investments in associates | 0 | 141 |
| Other financial assets | 4,569 | 5,268 |
| Tangible fixed assets | 98,069 | 75,206 |
| Right of use assets | 20,551 | 26,716 |
| Intangible assets | 31,560 | 30,906 |
| Other assets | 9,718 | 8,185 |
| Deferred tax assets | 4,707 | 4,505 |
| Total assets | 1,435,814 | 1,320,584 |
| Liabilities | ||
| Customer deposits | 1,171,359 | 1,081,566 |
| Financial liabilities measured at fair value through profit or loss | 503 | 50 |
| Other financial liabilities | 59,135 | 60,927 |
| Current tax liability | 62 | 311 |
| Deferred tax liability | 533 | 204 |
| Other liabilities | 4,620 | 3,691 |
| Subordinated debt securities | 52,046 | 49,745 |
| Total liabilities | 1,288,258 | 1,196,494 |
| Equity | ||
| Share capital | 1,152 | 1,086 |
| Share premium | 54,849 | 43,563 |
| Statutory reserve | 109 | 103 |
| Other reserves | 1,329 | 1,543 |
| Retained earnings | 90,117 | 77,795 |
| Total equity | 147,556 | 124,090 |
| Total liabilities and equity | 1,435,814 | 1,320,584 |
Inbank is a financial technology company with an EU banking license that connects merchants, consumers and financial institutions on its next generation embedded finance platform. Partnering with more than 6,000 merchants, Inbank has 872,000+ active contracts and collects deposits across 7 markets in Europe. Inbank bonds are listed on the Nasdaq Tallinn Stock Exchange.
Additional information:
Styv Solovjov
AS Inbank
Head of Investor Relations
+372 5645 9738
styv.solovjov@inbank.ee
