GoTo-backed digital lender Bank Jago's profit jumps 24% in 9M 2023

GoTo-backed digital lender Bank Jago's profit jumps 24% in 9M 2023

A gojek driver in front of Bank Jago's logo

GoTo-backed digital lender PT Bank Jago Tbk booked a 24% jump in net profit in the nine months (Jan-Sep) of 2023 as net interest income also grew 23%.

In the first nine months of 2023, Bank Jago recorded a profit of 50 billion rupiah ($3.13 million), compared with 41 billion rupiah in the same period last year. Its net interest income, on the other hand, jumped to 1.2 trillion rupiah from 984 billion rupiah during the period.

In a statement on Friday, Arief Harris Tandjung, CEO of Bank Jago, said net interest income is derived from the growth of loan disbursements. In 9M 2023, Bank Jago’s loan disbursements surged 33% to 11 trillion rupiah from 8.2 trillion rupiah in 9M 2022.

Loan disbursements are done cautiously so that the lender can manage its bad debt ratio at 1.2%, the statement added.  

“For loan disbursements, we utilise our partnerships with merchants in our ecosystem and digital platforms,” Tandjung said.

The lender’s deposits also jumped 41%, from 7.3 trillion rupiah in 9M 2022 to 10.3 trillion rupiah in 9M 2023. Current account savings account (CASA) dominated the deposits with a 73% share. 

To grow its deposits, Bank Jago has signed a partnership with GoTo for a new product called GoPay Tabungan by Jago. This is also expected to ramp up the lender’s customer base.

Bank Jago had over 9 million customers in Q3 2023, up 76% from 4.2 million in Q3 2022.

The lender’s assets grew 21% to 19.1 trillion rupiah in Q3 2023; while its capital adequacy ratio touched 71%, which is above the regulator’s requirement at 8%.

Founded in 1992 under the name Bank Artos Indonesia, the lender rebranded into Bank Jago in 2019. PT Metamorfosis Ekosistem Indonesia and Wealth Track Technology Limited are its majority shareholders, while GIC Private Limited and GoTo Financial joined as shareholders in 2020. 

Edited by: Joymitra Rai

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