Net profits of GoTo-backed PT Bank Jago Tbk rose 23% in the first half (H1) of 2024 thanks to a growth in the digital lender’s fee income, despite lower net interest income.
In January-June 2024, Bank Jago booked a net profit of 50 billion rupiah ($3.07 million), up from 41 billion rupiah in the year-ago period.
Fee income contributed the most to net profits, reaching 133 billion rupiah in H1 2024, up 44% compared with 92 billion rupiah in the same period last year.
However, the interest income of Bank Jago declined by 7% to 912 billion rupiah from 984 billion rupiah. Interest expenses also surged by 34% to 204 billion rupiah, resulting in a 15% decrease in net interest income to 708 billion rupiah.
Bank Jago’s loan disbursement grew 40% from 11.2 trillion rupiah in H1 2023 to 15.7 trillion rupiah in H1 2024. The company disbursed loans cautiously, as indicated by the low non-performing loan (NPL) ratio of 0.4%.
“Bank Jago’s combination of digital prowess and sound business fundamentals has fueled consistent growth while maintaining high quality,” said Bank Jago President Director Arief Harris Tandjung.
Strategic ecosystem partners, including the GoTo ecosystem and the online mutual fund platform Bibit, which are seamlessly connected with the Jago App, have driven the lender’s business growth, with 60% of Jago App funding customers coming from these ecosystem partners.
This growth contributed to the company’s deposits, which reached 14.8 trillion rupiah in H1 2024, up 47% compared with 10.1 trillion rupiah in the same period last year. Current account and savings accounts (CASA) represented 61%, amounting to 9.1 trillion rupiah, while term deposits (TD) accounted for 39%, or 5.7 trillion rupiah.
Bank Jago’s total assets in the first half of 2024 reached 24.2 trillion rupiah, an increase of 29% from 18.9 trillion rupiah a year ago.
Bank Jago’s healthy capital adequacy ratio (CAR) of 50% underscores its robust financial position and capacity for future expansion.
“As a tech-based bank, Bank Jago will continue to innovate and expand its digital ecosystem collaborations. By combining these strengths with robust risk management and governance, we have a strong foundation to achieve even greater heights,” said Tandjung.
Founded in 1992 under the name Bank Artos Indonesia, the lender rebranded as Bank Jago in 2019. Its majority shareholders are PT Metamorfosis Ekosistem Indonesia and Wealth Track Technology Limited, with GIC Private Limited and GoTo Financial joining as shareholders in 2020.
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