The increased number of digital banking customers, low funding costs, and strong loan growth momentum maintain Bank Jago's financial performance well.
Jakarta, 21 July 2022 - PT Bank Jago Tbk, a technology-based bank embedded within the digital ecosystems, closed the second quarter of 2022 with positive and solid performance. Positive and solid growth was observed in third-party funds (DPK) collection, loan disbursement, and the number of digital banking users.
The high reception from the public towards the Jago App has driven the number of funding customers to exceed 3 million by the end of June 2022. This number grew by over 100% in 6 months or recorded 1.4 million customers by the end of 2021.
"We interpret this growth as an appreciation for our efforts in providing a banking application that meets customers’ needs," said President Director of Bank Jago, Kharim Siregar.
The increasing number of customers drove third-party funds (DPK) to grow by 253% to IDR 6.1 trillion year-on-year (yoy). Year-to-date, DPK grew by 65.9% compared to the end of 2021, recorded at IDR 3.68 trillion. More specifically, current account savings account (CASA) increased by 643% yoy to IDR 3.87 trillion, while deposits grew by 85% to IDR 2.23 trillion. This has improved the funding cost structure, reflected in the CASA ratio to total DPK reaching 63%.
The increase in CASA enabled Bank Jago to maintain low interest expenses and Sharia expenses, at IDR 64 billion in the second quarter of 2022, up 200% from the previous year. Meanwhile, interest income and Sharia income of Bank Jago grew higher, increasing by 340% to IDR 705 billion in the second quarter of 2022. Consequently, net interest income recorded IDR 641 billion, growing by 361% yoy.
Interest income and sharia income were driven by sharia loan disbursements and financing, which grew by 234% to IDR 7.26 trillion compared to the same period last year of IDR 2.17 trillion. Year-to-date, sharia loan disbursement and financing increased by IDR 1.89 trillion or grew by 35% compared to the end of 2021, recorded at IDR 5.37 trillion.
The high growth in sharia loan disbursement and financing was supported by collaborations with several fintech lending, multifinance, and other digital financial institutions in partnership lending. This complements Bank Jago's integration with the Gojek super-app, Bibit online mutual fund application, and Stockbit online trading platform. Until the end of the second quarter of 2022, Bank Jago had collaborated with 34 institutions, including Atome, Kredit Pintar, Home Credit, Carsome Indonesia, and BFI Finance.
"We will continue to expand and deepen collaborations with the financial ecosystem. This is our strategy to actively reach out to customers wherever they are," said Kharim.
The combination of improved fund structure and high loan growth positively impacted the net profit after tax until the second quarter of 2022 amounting to IDR 29 billion, in contrast to the second quarter of 2021 which still recorded a loss. The high growth in DPK drove the improvement of the liquidity ratio or loan to deposits ratio (LDR) to 119% at the end of the second quarter of 2022 from 146% at the end of 2021.
Bank Jago recorded a NIM of 10.8% and had a capital adequacy ratio (CAR) of 110%, strong enough to support future business expansion. As of the end of June 2022, Bank Jago recorded total assets of IDR 14.61 trillion, growing by 44.8% compared to the same period last year.
About Bank Jago
Specifically built as a tech-based bank embedded within Indonesia’s digital ecosystem, Bank Jago aspires to enhance the growth of millions through life-centric digital financial solutions. Bank Jago develops banking products and services, both conventional and sharia, that can be used by everyone, including retail (consumer), mass market, or micro, small and medium enterprises (MSME).
Bank Jago develops Jago App, which is designed to be embedded within various digital ecosystems, and can be customized and personalized so it can be compatible with their ecosystems, and also with the users’ personal needs. The collaborations with various ecosystems enable users to live their life more conveniently.
For further information, please contact:
Marchelo
Corporate Communication
PT Bank Jago Tbk
[email protected]
