GoTo-backed PT Bank Jago Tbk recorded a 71% growth in net profit in Q3 2024, driven by a 74.6% increase in other operating income. However, there was a decrease in net interest income and sharia income (NII) and net interest margin (NIM), according to the company’s disclosure.
In Jul-Sept 2024, Bank Jago booked a net profit of 85.84 billion ($5.4 million), compared to 50.29 billion rupiah ($3.1 million) in the same period last year.
Bank Jago’s net profit growth was driven by an increase in other operating income, which rose 74.6% to 205.5 billion rupiah ($13 million) in the three-month period.
Other operating income includes investment income, revenue from trading transactions, dividends income, realised gains from derivative instruments, revenue from the recovery of written-off assets etc.
However, there was a decline in net interest and sharia income (NII) in the September quarter. The company clocked an NII of 1.07 trillion rupiah ($107.7 billion), down 10.9% year-on-year. The decrease was primarily due to sharia income, which shrank 66.4% to 76.75 billion rupiah ($4.8 million).
Meanwhile, interest income recorded an increase of 10.5% year-on-year to 1.3 trillion rupiah ($82.4 billion) in Q3 2024. On the other hand, net interest margin (NIM) declined to 7.1% from 9.97%.
Additionally, there was a 51.34% YoY reduction in financial asset impairment losses to 169.55 billion rupiah. The bank also managed to reduce other operating expenses to 966.04 billion rupiah in the September quarter from 1.15 trillion rupiah in September 2023. As a result, Bank Jago’s operating profit grew 77.08% to 111.09 billion rupiah.
Bank Jago’s president director Arief Harris Tandjung stated that collaborating with digital ecosystems, incorporating various digital innovations, and implementing sustainable business and fundamental strategies represent the right business model for growing Bank Jago’s business.
“As a technology-based bank, Bank Jago has successfully maintained and grown profitability without compromising growth quality and without burning significant capital. Going forward, we remain consistent in collaborating and innovating to deliver both fundamental features and Jago’s unique offerings,” he said in an official statement.
Bank Jago’s loans disbursed grew 72.42% to 17.18 trillion rupiah for the latest financial quarter. However, sharia financing decreased by 91.98% to only 72.53 billion rupiah. The total loans and financing reached 17.26 trillion rupiah, up 58.73%.
Even so, the company disbursed loans cautiously, as seen from the gross non-performing loan (NPL) ratio, which decreased to 0.23% from 1.15% in September 2023. The net NPL also fell to 0% from 0.14%.
The funding customers through the Jago app reached over 11.1 million. Including lending customers, Bank Jago’s total customer base reached 14.1 million. Of the funding customers, more than 67% came from ecosystem partners, including the GoTo ecosystem and the Bibit online mutual fund platform, which are seamlessly connected to the Jago app.
This growth contributed to the company’s deposits, which reached 16.94 trillion rupiah, growing 64.42% compared with 10.3 trillion rupiah previously. Current account and savings account (CASA) is up 27.26% to 9.6 trillion rupiah.
The digital bank’s assets grew 40.38% to 26.85 trillion rupiah from 19.13 trillion rupiah. Meanwhile, the capital adequacy ratio (CAR) reached 45.6%, demonstrating strong capital levels to support future business expansion.
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.
