GoTo-backed lender PT Bank Jago Tbk on Monday announced a 40% jump in profits in the first half of 2023 as revenues also rose 30%.
In the first six months of 2023, Bank Jago recorded a profit of 41 billion rupiah ($2.71 million), compared with 29 billion rupiah in the same period last year. Its revenue, on the other hand, jumped from 641 billion rupiah to 832 billion rupiah during the period.
“Our financial performance in Q2 2023 is on the right track and in good momentum. We plan to grow our business much bigger along with improving our digital technology and collaborating with other players in the digital ecosystem,” said Bank Jago CEO Arief Harris Tandjung in a statement on Monday.
Tandjung explained that in the second quarter of 2023, Bank Jago not only recorded a surge in revenue and profits but also in the number of customers, deposits, and loan disbursements.
Bank Jago had over 8.3 million customers in June 2023, compared with 6 million in June last year.
The growth in customer numbers pushed up Bank Jago’s deposits to 10 trillion rupiah in Q2 2023, a 65% jump compared with 6.1 trillion rupiah in Q2 2022. Bank Jago’s deposits consisted of 71.4% CASA (current account saving account) and 28.6% term deposits.
“The growth in customers and deposits showed our commitment to deepen and leverage our digital ecosystem and also the public trust in Bank Jago,” Tandjung said.
Bank Jago channelled its loans in collaboration with many partners, including digital platforms, multifinance companies, and other financial institutions. It disbursed loans and sharia financing of 11.2 trillion rupiah in Q2 2023, up 54% compared with 7.3 trillion rupiah in Q2 2022 with a low bad debt ratio at 1.2%.
Bank Jago’s assets in H1 2023 grew 29% to 18.9 trillion rupiah, while the capital adequacy ratio reached 73% or above the regulatory requirement of 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.