GoTo-backed digital lender PT Bank Jago’s profits surged 24% during the first quarter ended March 2024, driven by a 32% increase in loan disbursements during the period, the company announced on Friday.
While net profit increased to 22 billion rupiah from 18 billion rupiah year-on-year in Q1 2024, Bank Jago’s loan disbursements grew to 14.3 trillion rupiah from 10.8 trillion rupiah during the period. The cautious approach to loan disbursement is evident in the low non-performing loan (NPL) ratio of 0.6%, way below the industry average of 2.3%.
“Beginning this year, we are committed to consistently implementing collaboration and ecosystem strategies, which we believe are the best ways to achieve solid growth,” said Arief Harris Tandjung, President Director of Bank Jago, in a statement on Friday.
Bank Jago’s close partnership with the GoTo ecosystem, including fintech firm GoPay and wealthtech platform Bibit, has made a significant contribution to its business, especially in attracting funding customers.
In Q1 2024, Bank Jago served 11.1 million customers, including 9 million funding customers on the Jago app. This represents a 48% increase compared to Q1 2023 when it had 7.5 million customers.
The growth in funding customers contributed to a 42% increase in deposits to 13.2 trillion rupiah in Q1 2024, up from 9.3 trillion rupiah in Q1 2023. Of the total deposits, 63% was accounted for by CASA (current account savings account), while the rest was contributed by term deposits.
Founded in 1992 under the name Bank Artos Indonesia, the lender rebranded as Bank Jago in 2019. Its majority shareholders are PT Metamorfosis Ekosistem Indonesia and Wealth Track Technology Limited, with GIC Private Limited and GoTo Financial joining as shareholders in 2020.
