Press Release - October 22, 2021

Jago Books Profit as Loan Growth Soars

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Increasing CASA manages to lower cost of fund.


Jakarta, 22 October 2021 – PT Bank Jago Tbk has booked a positive financial performance following its decision to stay focused on catering retail and mass market segments using technology. After recording losses in the last six years, Bank Jago managed to book a net income in the third quarter of 2021. The achievement was supported by a solid loan growth, low non-performing loan (NPL) ratio, and an efficiency in cost of funds due to increasing current account saving account (CASA) amount. 

The bank’s loans reached IDR 3.73 trillion, jumping 502% year-on-year (yoy) as of September 2021. The growth mostly happened in the third quarter with IDR 1.56 trillion of loans added compared to the previous three months.

“The growth rate looks very high because we start from a low baseline. However, we witness a consistent improvement in our business from time to time. We will hold on to this trajectory by expanding our collaborations and integrations with digital ecosystems,” said President Director of Bank Jago Kharim Siregar.

Currently, Jago app has been integrated with online mutual funds app and super-app Gojek. These integrations enable customers to access financial products and services seamlessly, easily, quickly and safely. Jago’s Pockets features which are connected to Bibit and Gojek allow customers to manage their finances in a more disciplined, innovative and collaborative way.

In addition to those collaborations, Jago also partners with several fintech lending, multifinance and other digital-based financial institutions through a partnership lending scheme. The scheme allows Jago to expand its business while managing its risks as shown in its NPL of 0.6%. 

“This achievement proves that our business model is the right one. The implementation of the collaboration concept with digital ecosystems in serving our customers has been proven successful in encouraging our inorganic, effective and quick growth,” Kharim said.

The 502% loan growth resulted in soaring interest income of 478% yoy to IDR 355 billion while cost of fund increased just 104% to IDR 38 billion, resulting in net interest income of IDR 318 billion or higher 640%. Net interest margin (NIM) currently stood at 6.1%, higher than 4.4% recorded in the corresponding period last year.

The contained cost of fund was a result of Jago’s efforts in increasing CASA composition. Third party fund reached IDR 2.54 trillion as of September 2021, jumping 564% yoy. Of the figure, CASA amounted to IDR 985 billion or 1,031% higher yoy while time deposits stood at IDR 1.6 trillion or grew 427%.

The CASA portion as of September 2021 reached 38.72%, higher than 22.74% recorded in the corresponding period last year and 30.21% booked as of June. At the same time, time deposits share toward the total third party fund decreased from 77.26% to 69.79% and to 61.3% in the third quarter.

“The higher CASA affects the cost of fund structure and brings positive impacts toward the margin. The increasing low cost of funds also shows the public’s better acceptance toward Jago application,” Kharim added.

The aggressive loan growth, low NPL and ability to improve the cost of fund structure resulted in a net profit of IDR 14 billion, which officially ended the losing trend seen by the bank in the last six years.

“Although the company still records a loss so far this year, we are thankful of this achievement. We are optimistic that our performance will get better going forward and Bank Jago will become a profitable and sustainable digital bank,” Kharim stated.

Jago’s assets reached IDR 11 trillion as of September 2021 or higher 536% yoy with a capital of IDR 8 trillion, a solid figure that would support the bank’s business and expansion plans in the future.




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