Company presentation
28 May, 2019
Inbank AS Company presentation Q1 2019 1
Company presentation
Overview of Inbank Inbank is an Estonian consumer finance focused digital bank with an EU credit institution license •
Founded in 2010 by former banking executives Priit Põldoja and Jan Andresoo
•
In April 2015 received a banking license and rebranded itself as Inbank
•
Balance sheet of 341 EURm and equity of 38 EURm by 31.03.2019
•
Inbank operates in 4 countries with offices in Tallinn, Riga, Vilnius, Klaipeda, Kaunas, Warsaw and Gdansk
•
Inbank employs 163 people
28 May, 2019
2
Company presentation
Group structure and shareholders Branch
100% Shareholders with above 10% holding
No. of shares
% of holding
Cofi Investeeringud OÜ
24 635
28,2%
Branch Inbank Poland
UAB Mokilizingas
Mokilizingas Filiale Latvija
Financing activities in Lithuania. Acquired in May 2018, consolidated since 22.05.2018
Financing activities in Latvia. Acquired in May 2018
Latvia
Lithuania
Poland
Pershing Hall Holding Limited
23 858
27,3%
Financing activities and accepting deposits in Poland. Started operations in January 2017
100% Inbank Latvia Founders and employees 33,5% Financial investors 66,5%
Latvia
Financing activities in Latvia Established in August 2014
37% Maksekeskus Holding OÜ* Estonia
Holding in Maksekeskus AS, an e-commerce payments consolidator
100%
Inbank AS
Inbank Liising AS
Parent company
Estonia
Financing activities and accepting deposits in Estonia. Licence to operate as a credit institution since 10 April 2015
100%
Financing activities in Estonia. Established in April 2016
8%
Inbank Technologies OÜ
Coop Pank AS
IT development. Holding acquired in May 2015
Financing activities and accepting deposits in Estonia. In accounting terms, the company constitutes as an affiliate
Estonia
Estonia
* Maksekeskus Holding OÜ has 20,3% shareholding in Maksekeskus AS, making Inbank a 7,6% shareholder in the payment consolidator
28 May, 2019
3
Company presentation
Countries of operation Number of employees
Number of offices
Active Distribution partners
Net loan portfolio EURm
Group
163
7
1 583
246
Estonia
65
1
205
108
Latvia
24
1
174
44
Lithuania
57
3
1 114
79
Poland
17
2
90
14
31.03.2019
28 May, 2019
4
Company presentation
Strategy & core competencies Partner Management
We help our partners sell more by simplifying purchases and making financing more accessible to our customers
Customer Behavior
Distribution and Marketing
Sales Orientation
Product Development, Process Development, Technology
Yielding Loan Portfolio, ROE
Managing Affordability Simplifying Distribution Enabling Credit
Profitable Business Model Risk Management Funding and Capital Management
28 May, 2019
5
Company presentation
Efficient and automated business model Automatic scoring and contract completion
Partner-based distribution model
• •
•
90% of contracts completed automatically online or at point-of-sale Average time for credit decision less than 7 seconds
• •
Experience with 3 strategic distribution partners- a supermarket chain, a bank, an online marketplace Over 1 500 active partner merchants and over 340 000 active customers Financing solution fully integrated into partners’ business processes
Loan process overview Queries
Statistical model
Contract
Digital signature
Online identification
Credit bureaus Income data Personal data
28 May, 2019
6
Company presentation
EURm
Main milestones 250
200
246 EURm loan portfolio 276 EURm deposit portfolio Over 340 thousand active clients Over 1 500 active partners
31.03.19
150
100
50
Cofi signs first hire purchase contract
In cooperation with Coop, the largest supermarket chain, Cofi starts issuing co-branded credit cards
Coop Finants starts issuing loans
Cofi launches a new loan product with the 6th largest bank in Estonia
Cofi enters into Latvian consumer credit market
Cofi recives banking licence and changed name to Inbank
Inbank starts co-operation with the largest car sales portal
Inbank acquires a share in Coop Pank and sells affiliates to Coop Pank
Inbank opens Polish branch
Inbank purchases Mokilizingas 40,4%
6,0% 9,3%
44,3%
0
28 May, 2019
Estonia
Latvia
Poland
Mokilizingas
KPF (affiliate)
CoopF (affiliate)
7
Company presentation
Key annual financial indicators
Net interest income Net fee and commission income Total net income Operating expenses Operating profit Impairment losses on loans Total comprehensive income Return on equity Net interest margin Impairment losses to loan portfolio Cost/income ratio
2015
2016
2017
2018
14 0 15 6
35 30 42 8
65 65 85 12
93 95 126 22
226 240 318 36
1,9 0,3 2,4 1,0 1,4 0,3 1,3
3,4 0,0 4,0 2,6 1,5 1,0 0,9
8,4 0,1 9,2 4,2 5,0 3,2 2,6
11,0 -0,1 11,7 6,7 4,9 3,5 7,5
19,9 -0,4 21,4 10,6 10,7 2,7 9,3
43,1% 16,7% 2,4% 41,1%
14,5% 12,3% 4,0% 63,2%
26,6% 13,7% 6,4% 45,7%
44,1% 11,1% 4,5% 57,8%
31,9% 9,5% 1,7% 49,9%
Comprehensive income 9,3
10,0 7,5
8,0
EURm
Loan portfolio Deposit portfolio Total assets Owner’s equity
2014
6,0 4,0
2,6 1,3
0,9
2014
2015
2,0 0,0
2017
2018
300 226
250
240
200 150 100 50 0
14 2014
35
30
2015 Loan portfolio
28 May, 2019
2016
Loan and deposit portfolio development
EURm
EURm
65
65
93
2016
95
2017
2018
Deposits & senior debt
8
Company presentation
Key quarterly financial indicators
Net interest income Net fee and commission income Total net income Operating expenses Operating profit Impairment losses on loans Total comprehensive income Return on equity Net interest margin Impairment losses to loan portfolio Cost/income ratio
98 101 135 25 3,2 0,0 4,5 1,9 2,7 0,9 3,9 67,5% 10,7% 3,6% 41,4%
178 159 238 32 4,1 0,0 4,2 2,3 1,8 1,0 0,9 12,4% 9,3% 2,9% 55,8%
200 187 263 33 5,9 -0,2 6,0 2,9 3,1 1,2 1,5 18,0% 10,0% 2,6% 48,3%
226 240 318 36 6,6 -0,2 6,7 3,6 3,1 -0,4 3,1 34,9% 9,5% -0,7% 53,3%
246 276 341 38 6,8 -0,2 6,8 3,3 3,5 1,2 2,0 21,9% 8,7% 2,1% 48,6%
Comprehesive income 5,0 4,0
EURm
Loan portfolio Deposit portfolio Total assets Owner’s equity
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019
3,9 3,1
3,0 2,0
0,0
0,9
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Loan and deposit portfolio development 300 250 178
200 150 100
98
159
200 187
226
240
246
276
101
50 0
Q1 2018
Q2 2018 Loan portfolio
28 May, 2019
2,0
1,5
1,0
EURm
EURm
Q3 2018
Q4 2018
Q1 2019
Deposits & senior debt
9
Company presentation
Inbank AS Consolidated Income Report EURt Continuing operations Interest income Interest expenses Net interest income Fee and commission income Fee and commission expense Net fee and commission income Net gains from financial assets measured at fair value Other income related to operations Total net income Personnel expenses Marketing expenses Other operating expenses Total operating expenses Operating profit Other income from affiliates Profit before loan losses Impairment losses on loans Profit before income tax Income tax Profit for the reporting period Unrealized currency exchange income / -loss Comprehensive income Profit (loss) attributable to the parent company Profit (loss) attributable to non-controlling interest Total comprehensive income for the period
28 May, 2019
Q1 2019
Q1 2018
% change
8 155 -1 390 6 765 204 -375 -171 0 245 6 839 -1 856 -391 -1 076 -3 323 3 516 0 3 517 -1 195 2 322 -299 2 022 -1 2 021 2 021 0 2 021
3 797 -571 3 226 161 -154 7 1204 84 4 521 -1 211 -126 -533 -1 870 2 651 1 986 4 637 -852 3 785 103 3 888 20 3 908 3 905 3 3 908
115% 143% 110% 27% 144% -2542% n.a. 191% 51% 53% 210% 102% 78% 33% n.a. -24% 40% -39% -391% -48% -105% -48% -48% n.a. -48%
- Q1 2018 figures do not include Mokilizingas - Normalized YoY change on total net income would be 38%, change for total operating expenses 15% and 102% for comprehensive income (when including the effect of Mokilizingas and excluding extraordinary items in Q1 2018 in amount of 3,2 EURm - sale of Coop Pank and Veriff OĂœ shares)
10
Company presentation
Inbank AS Consolidated Balance Sheet EURt Assets Cash and cash equivalents Loan portfolio (net) Financial assets at fair value through profit and loss Investment in affiliates Intangible assets Other assets Income tax asset Total assets Liabilities Loan from credit institutions Customer deposits Other liabilities Senior debt Subordinated debt Total liabilities Equity Paid-in capital Reserves Retained earnings of previous periods Total equity attributable to the shareholders of parent company Minority interest Total equity Total liabilities and equity
28 May, 2019
31.03.2019
31.12.2018
% change
79 605 245 563 4 600 97 8 073 2 182 564 340 684
78 324 225 639 4 600 97 7697 1123 564 318 044
2% 9% 0% 0% 5% 94% 0% 7%
0 276 460 12 303 4 009 9 535 302 307
10 429 240 175 11 430 10017 9 528 281 579
-100% 15% 8% -60% 0% 7%
15 927 1 498 20 952 38 377 0 38 377 340 684
15 927 1 480 19 018 36 425 40 36 465 318 044
0% 1% 10% 5% -100% 5% 7%
11
Company presentation
Group level management Jan Andresoo
Piret Paulus
Marko Varik
Chairman of Supervisory Board, Founder
CEO, Chairman of Management Board, Founder
Head of Group Business Development, Member of Management Board
CFO, Member of Management Board
Liina Sadrak
Ivar Kallast
Priit Põldoja
The core of Inbank management are centralised finance, risk, product development and IT teams Inbank Group management is focused on strategy, innovation and growth into new markets as well as meeting bank’s capital return and risk appetite targets
28 May, 2019
Head of Business Processes, Member of Management Board
CRO, Member of Management Board
Priit Piile
Erkki Saarniit
Head of IT
Head of Group Product Development
12
Company presentation
Management of Inbank Group companies The backbone for Inbank’s international growth is strong local management
Girts Ledins
Maciej Pieczkowski
Benas Pavlauskas
Chief Executive Officer, Inbank Lizings
Chief Executive Officer, Inbank Poland
Chief Executive Officer, Mokilizingas
Inbank has looked for entrepreneurial and experienced local managers that can replicate Inbank business model in their respective countries
28 May, 2019
Margus Kastein
Juris Filipovs
Tomasz Rzeski
Jone Virbickiene
Managing Director, Inbank Estonia
Chief Operating Officer, Inbank Lizings
Chief Commercial Officer, Inbank Poland
Chief Financial Officer, Mokilizingas
13
Company presentation
Key success factors Profitable consumer finance business model Proven track record with strong market position in Estonia and Lithuania Potential to grow business in Poland and take the business model into more countries EU banking license for accessing sustainable funding Strong international investor base to support the growth of the bank Experienced and professional team Excellent proprietary technology and innovative digital solutions Focused strategy and organization 28 May, 2019
14
Inbank AS Niine 11, 10414 Tallinn info@inbank.ee +372 640 8080 www.inbank.ee
28 May, 2019