Gojek-backed Indonesian digital lender Bank Jago has posted a significant growth in revenue and booked a profit in the first nine months of 2022 on the back of a strong ecosystem and new collaborations, according to a statement on Thursday.
During January to September 2022, the lender posted a profit of 41 billion rupiah ($2.63 million), compared with losses of 32.6 billion rupiah ($2.09 million) in the same period last year.
Bank Jago’s revenue grew over 200% to 1.08 trillion rupiah in the first nine months of 2022, while it managed to reduce costs by 166% to 101 billion rupiah during the period.
“Our September results prove that we are on the right track to reach sustainable growth. However, we keep monitoring domestic and global economic conditions, so that we can anticipate the bad impact on the company,” Kharim Siregar, Bank Jago’s president director, said in a statement.
As of September 2022, Bank Jago had collaborations with 38 institutions, including 32 partnership lending agreements.
Recently, Bank Jago invested in GoTo’s GoPayLater Cicil, a paylater product from Tokopedia. The lender also integrated its services into GoTo’s app for GoFood merchants, GoBiz.
Such collaborations pushed up Bank Jago’s customer base three times to 4.2 million in September 2022 from 1.4 million in December 2021. “Collaboration is an effective way to help us grow our business. We plan to expand collaboration with other partners while deepening it with our existing partners,” Siregar explained.
The large customer base increased Bank Jago’s low-cost funding, or CASA (current account and saving account), to 5.14 trillion rupiah until September 2022, an increase of 422% from September last year. At the same time, time deposits grew 38% to 2.14 trillion rupiah.
In terms of lending, Bank Jago booked loans worth 8.16 trillion rupiah in the first nine months of 2022, more than double the 3.73 trillion rupiah in the same period last year. Collaboration with fintech lenders, multifinance and other financial institutions boosted Bank Jago’s disbursements during the period. Its lending partners include used car e-commerce platform Carsome Indonesia and Moladim.
The lender does not intend to add capital as it has a high capital adequacy ratio (CAR) of 97% as of September 2022. PT Metamorfosis Ekosistem Indonesia is the majority shareholder in Bank Jago with an ownership of 28.81%, followed by PT Dompet Karya Anak Bangsa (Gopay) with 21.4%, Wealth Track Technology 11.69%, and Singapore state fund GIC 8.18%.