In line with the increase in the number of customers, the collection of third-party funds especially in savings and current accounts, has grown strongly.
Jakarta, 21 October 2022 - A technology-based bank embedded in the ecosystem, PT Bank Jago Tbk (Bank Jago), reported its financial performance as of the end of the third quarter of 2022. Consistently collaborating with ecosystems, Bank Jago continues a solid growth with maintained credit risk.
A number of new collaborations this year have driven the number of Bank Jago funding customers to reach 4.2 million by the end of September 2022. This number has tripled in nine months, compared to the end of 2021 which recorded 1.4 million customers.
"Bank Jago believes that collaboration is an effective way to provide financial products and services to customers while enabling us to grow quickly and efficiently. We will continue to expand and deepen the collaboration with existing and new ecosystems," said President Director of Bank Jago Kharim Siregar.
Throughout this year, Bank Jago has made a number of new collaborations. Recently, Bank Jago enhanced collaboration with the GoTo Group by providing funding for the GoPayLater Installment product (Cicil). This is Tokopedia’s latest digital loan product.
Bank Jago has also deepened the collaboration with GoTo Financial by integrating its services into the GoBiz application, an application for GoFood business partners. These two collaborations complete the integration of Bank Jago with Gojek and GoTo Financial that started in 2021.
The increase in the number of customers has driven the collection of third party funds (DPK), especially in savings and current accounts (CASA),to grow strongly. CASA has increased 422% year-on-year (yoy) to IDR 5.14 trillion, while deposits grew 38% to IDR 2.14 trillion. This resulted in an improved cost of funds structure as reflected in the CASA to total DPK ratio of 71%. Overall, DPK collected until the third quarter of 2022 reached IDR 7.28 trillion, growing 186% yoy.
With a large capital portion of CASA, Bank Jago managed to keep interest expenses and sharia costs low, amounting IDR 101 billion per quarter III-2022, an increase of 166% from the same period the previous year. Meanwhile, Bank Jago's interest income and sharia income grew higher, increasing by 205% to IDR 1.08 trillion per quarter III-2022. Net interest income was recorded at IDR 984 billion, growing 210% annually.
The interest income and sharia income were driven by sharia loans disbursement and financing which grew 119% to IDR 8.16 trillion compared to the same period last year IDR 3.73 trillion. The high growth in sharia loans disbursement and financing was supported by collaboration with various partners, such as fintech lending, multifinance, and other financial institutions through collaborative partnership lending.
One of the latest partnership lending collaborations is with the leading e-commerce platform for buying and selling used cars Carsome Indonesia and Moladin. By the end of September 2022, Bank Jago had collaborated with 38 institutions, including 32 partners for partnership lending.
The partnership lending model allows Bank Jago to be expansive in disbursing loans while maintaining controlled risk management. This is reflected in the gross non-performing loan (NPL) ratio which is at the level of 2.1% or below the banking industry average.
The combination of a good fund structure, high loan growth, and controlled credit risk has a positive impact on obtaining net profit after tax until the third quarter of III-2022 of IDR 41 billion, in contrast to the same period the previous year, which recorded a loss.
“Until September 2022 we are on the right track towards solid growth. On the other hand, we are keeping a close watch on global and domestic economic developments so that we can anticipate and continue to drive healthy and sustainable growth in Bank Jago's performance in the coming year," said Kharim.
By the end of September 2022, Bank Jago's liquidity ratio or loan to deposits ratio (LDR) was recorded at 112%. Meanwhile, the net interest margin (NIM) was recorded at 10.5% and the capital adequacy ratio (CAR) was 97%. These ratios are strong enough to support future business expansion. Overall, Bank Jago's assets were recorded at IDR 15.82 trillion, growing 44.1% compared to the same period the previous year.
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About Jago Bank
Formally known as PT Bank Artos Indonesia (Bank Artos) in 1992. After more than 27 years of serving the society with conventional banking products, in 2019 Bank Artos entered a new era which was marked by the entry of PT Metamorphosis Ekosistem Indonesia (MEI) and Wealth Track Technology Limited (WTT) as the new controlling shareholders after acquiring Bank Artos shares MEI (37.65%) and WTT (13.35%).
After the Limited Public Offering (Penawaran Umum Terbatas/PUT) phase II, the total ownership of MEI and WTT was 41.49%. The entry of institutional investors, such as GIC Pte. and GoTo Financial, strengthened Bank Jago in providing the best financial solutions by continuously innovating.
Bank Jago was developed as a strong and innovative tech-based bank ready to serve the needs of customers in the retail market segment (consumer), Small and Medium sized Enterprises (SMEs), as well as the mass market, through banking products and services that are embedded in ecosystems by optimizing technology. Bank Jago enhances the growth of millions through life-focused digital finance solutions.
For further information contact:
Marchelo
Corporate Communication
PT Bank Jago Tbk
