a product message image
{' '} {' '}
Limited time offer
SAVE % on your upgrade

Page 1

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

Profile for Inbank

Inbank AS Company presentation Q1 2019  

Inbank AS Company presentation Q1 2019  

Profile for inbank