Press Release - September 08, 2021

Bank Jago Holds Public Expose

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Jakarta, 8 September 2021 PT Bank Jago Tbk has held a mandatory public expose today. The annual event, which is mandated by the Indonesia Stock Exchange, is a form of the company’s transparency and accountability toward the public and its shareholders. In the event, the company’s management announced Bank Jago’s financial performance in the first half of 2021 and its strategic plans for the year’s second half.

The bank managed to increase its loan disbursement and expand collaborations with digital ecosystems. The collaborations took forms in partnerships with various peer-to-peer (P2P) lending companies, multifinance and digital ecosystems as well as the integration of the bank’s application with investment platform Bibit and super-app Gojek. 

The company’s achievements in the 2021’s first half showed that it was already on the right track to realize Jago’s big aspiration as a tech-based bank built in the digital ecosystems, said President Director of Bank Jago Kharim Siregar.

“In-depth collaborations with the digital ecosystems become Jago’s opportunities to increase its market penetration while giving new experience for the customers in accessing banking services,” he said.

The integration of Jago and Bibit apps occurred on 5 July, followed by the integration with Gojek on 22 July. The integrations between banking and digital ecosystem applications have become a milestone not only for Bank Jago but also for Indonesia’s banking industry.

“This is a game changer that will bring banks and digital ecosystems to the next level. Various collaborations and integrations will give benefits for the customers and eventually, will have positive impacts for Bank Jago’s business performance,” Kharim said.

Meanwhile, the bank’s collaborations with fintech lending have been realized in the form of partnership lending. Bank Jago at the time has partnered with Akseleran, BFI Finance, Logisly, Adakami and several other companies.

“We will definitely expand these collaborations. We, together with our partners, work to create financial access for micro, small and medium enterprises and the general public. Through this improving financial access, we expect to contribute to the country’s economic recovery from the pandemic impacts,” Kharim stated.

Bank Jago has disbursed IDR 2.17 trillion in loans as of June, soaring 695% year-on-year (yoy) or 68% quarter-on-quarter (qoq). The figure reflected a growth of 139% year-to-date (ytd).

“Volume-wise, the loan disbursement is indeed still low because we just started the expansion after rights issue II in April. However, we are grateful that during the pandemic we still could optimize our intermediate function with prudence,” he added.

The prudence showed in the bank’s non-performing loan (NPL) ratio of 0%. With such a low NPL, Bank Jago does not need to set aside a big amount of loan loss provision so that it can lower the cost of credit.

The loan growth boosted interest income by 289% yoy. With interest expenses that grew by just 46%, the company managed to book net interest income growth of 423% yoy to IDR 139 billion. As a result, cost to income ratio fell from 289% in the first half of 2020 to 129% in the 2021’s first six months. Further, net interest margin climbed up from 4.1% to 5% during the same period.

As a developing tech-based bank, the company continued to allocate capital expenditure for information and technology (IT) investment, app development and talent recruitment. This caused operating expenses to grow 135% to Rp 183 billion, resulting in net loss of IDR 47 billion in this year’s first half.

“Our financial performance has yet to turn to positive due to the investment factor. We view that such a situation is normal and in line with our plan. We believe this investment will bear fruit in the future,” Kharim said.

He went on to say that quarterly, Bank Jago’s performance was actually getting better. Jago recorded a net loss of IDR 38 billion in the first quarter of 2021. The loss decreased to IDR 9 billion in the second quarter due to higher loan and deposits of excess funds from rights issue in other productive instruments. “The figures showed that the bank’s performance got better and more solid,” Kharim stated.

Its assets also jumped 491% to IDR 10 trillion from IDR 1.7 trillion in the corresponding period last year while equity increased 538% from IDR 1.3 trillion to IDR 8.1 trillion. The third party funds grew 326% to IDR 1.73 trillion, indicating the public’s trust in Bank Jago’s business model. “Various financial indicators showed that Jago has strong fundamentals that can support its target to grow sustainably,” he added.


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