Press Release - July 26, 2021

Optimizing Financial Intermediation, Bank Jago's Loans Grow 695%

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JAKARTA – July 26, 2021 After completing the rights issue in April 2021, Bank Jago has continued to expand. In the past three months, the company has succeeded in increasing lending and expanding collaboration with the digital ecosystem. The collaboration is materialized through working together with a number of peer to peer (P2P) lending, multifinance, digital ecosystem companies and application integration with the Bibit investment platform and the Gojek super app.

Bank Jago President Director Kharim Siregar explained that the achievements during the first semester of 2021 showed that the company was on the right track in realizing Jago's great aspirations as a technology-based bank embedded in the ecosystem. "Profound collaboration with the ecosystem is an opportunity for Jago to expand the market penetration while providing new experiences for customers in accessing the bank’s services," said Kharim.

The Jago application’s integration with Bibit was materialized on July 5, and was continued with the integration of the Gojek application on July 22. The application integration between the bank and the ecosystem is not only a milestone for Bank Jago, but it is an important achievement for the digital banking industry in the country as well. “This is a game changer that will take banking and digital ecosystem to a higher level. Various forms of collaboration and integration will give benefits to the customers and in the end will have a positive impact on Bank Jago's performance," he said.

Meanwhile, a collaboration with fintech lending is realized in the form of partnership lending. Currently, Bank Jago has established partnerships with Akseleran, BFI Finance, Logisly, Adakami and several other partners. “This collaboration will certainly be expanded. Together with our partners, we strive to create financial access to micro, small and medium enterprises as well as the wider community. By increasing financing, we want to contribute to the economic recovery due to the pandemic," Kharim said.

By the end of June 2021, Bank Jago has disbursed loans of Rp 2.17 trillion, increased by 695% from the same position last year (year on year/yoy). On a quarterly basis calculation, credit increased by 68%. And from the end of December 2020 (year to date/ytd), credit rose 139%. "In terms of nominal value, it is not big because we have just started the expansion after the second rights issue in April 2021. However, we are still grateful that during the pandemic, we can still optimize the intermediation function while maintaining the precautionary principle," he said.

The precautionary principle in lending is reflected in the ratio of non-performing loans (NPL) at the level of 0%. With a very low NPL, Bank Jago does not need to form large reserves so that it can reduce the cost of credit.

Credit growth increased interest income by 289% (yoy). With the interest expense which only increased by 46%, the company was able to record a 423% increase in net interest income to Rp 139 billion. This resulted in a decrease in the cost to income ratio from 289% in Semester I of year 2020 to 129% in Semester I of year 2021. This condition also boosted the net interest margin (NIM) ratio from 4.1% to 5% in the same period.

As a developing technology bank, the company continues to allocate capital expenditures for IT investment, application development and recruitment of new talents. This caused operating expenses to increase by 135% to Rp 183 billion. The increase in operating costs had an impact on profit for the first semester in 2021, which still posted a net loss of Rp 47 billion. “So, our performance has not been positive due to the investment factor. We consider this as something reasonable and still in line with the initial planning. This investment will certainly yield results in the future,” said Kharim.

Kharim explained that on a quarterly basis calculation, Bank Jago's performance is actually getting better. In the first quarter of 2021, Jago posted a loss of Rp 38 billion. With the increase in credit and placement of funds more than the proceeds from the rights issue in other productive instruments, losses can be reduced to Rp 9 billion in the second quarter of 2021. "The data show that the performance of this bank continues to improve and is getting more solid," said Kharim.

In terms of assets, there was a significant increase of 491% from Rp 1.7 trillion to Rp 10 trillion. Meanwhile, equity increased by 538% from Rp 1.3 trillion to Rp 8.1 trillion. In terms of obtaining third party funds (TPF), the bank also experienced a 326% growth to Rp 1.73 trillion, reflecting the high public confidence in Bank Jago business model. "Various financial indicators show Jago has very strong fundamentals and is able to support the target for sustainable growth," Kharim concluded.



Bank Jago in brief

Bank Jago was established in Bandung in 1992 under the name PT Bank Artos Indonesia (Bank Artos). After serving customers for more than 27 years with conventional banking products, Bank Artos entered a new era in 2019 by having PT Metamorfosis Ekosistem Indonesia (MEI) and Wealth Track Technology Limited (WTT) as new controlling shareholders after they acquired Bank Artos shares of 37.65% (MEI) and 13.35% (WTT).

After the Phase II Limited Public Offering (PUT), the total ownership of MEI and WTT stands at 41.49%. The entry of institutional investors - Gojek, through its payments and financial services arm GoTo Financial, and GIC Pte also strengthens Bank Jago’s pipeline of innovative financial solutions.

Through banking products and services that are embedded in an ecosystem optimized by technology, Bank Jago aspires to be a strong and innovative tech-based bank that is ready to fulfill the needs of retail (consumers), small and medium enterprises (SMEs) and mass market segments. 


For further information please contact: 

Astried Anggraini

Corporate Communication 

PT Bank Jago Tbk 

[email protected]


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