Bank Jago Credit Disbursement IDR 11.2 Trillion In Semester I 2023

Illustration (Photo: Doc. Antara)

JAKARTA - PT Bank Jago Tbk (Bank Jago) recorded a credit disbursement of IDR 11.2 trillion in the first semester of 2023.

This number jumped 54 percent compared to the same period last year which was recorded at IDR 7.3 trillion.

"Credit growth has been achieved thanks to the consistency of management in implementing partnership lending schemes in recent years. Bank Jago has been active in building collaborations with a number of multifinance, start-ups, financial technology and a number of other financial institutions," said Bank Jago President Director Arief Harris Tandjung as quoted by Antara, Tuesday, August 1.

Arief explained, explaining, credit growth generated an interest income of IDR 984 billion, growing 40 percent on an annual basis (yoy).

Meanwhile, interest expense rose 136 percent to Rp152 billion.

The surge in interest expense is in line with the trend in the industry triggered by the increase in the benchmark interest rate since last year.

On the other hand, Bank Jago posted commission-based revenue (fee income) which reached 403 percent to Rp92 billion.

The increasing rate of credit growth can be balanced with the collection of third party funds (DPK) which increased 65 percent to Rp10.9 trillion.

Cheap funds or current account saving accounts (CASA) reached IDR 7.2 trillion, a 86 percent jump.

Meanwhile, deposits worth IDR 2.8 trillion increased by 30 percent. The composition of the DPK is dominated by CASA with a proportion of 71 percent.

The higher growth in DPK from lending has succeeded in reducing loan to deposit ratio (LDR) to 111 percent at the end of June 2023 from the same position the previous year 119 percent.

This intermediation ratio shows that the bank is expansive in disbursing credit but still pays attention to funding adequacy.

Meanwhile, the gross non-performing loans (NPL) ratio was successfully maintained at the level of 1.2 percent and NPL net at the level of 0.2 percent.

This is in line with the management guidelines at the beginning of the year which stated that they will focus on quality growth with a healthy balance sheet.

These various strategies have resulted in net profit after tax (NPAT) of IDR 41 billion, growing 40 percent on an annual basis. The total assets jumped 29 percent to IDR 18.8 trillion.

Arief revealed, earlier this year, Bank Jago entered into a financing agreement with PT BFI Finance Tbk (BFIN) worth IDR 2 trillion.

Previously, this digital bank had already entered the PT GoTo Gojek Tokopedia Tbk (GOTO) ecosystem to participate in financing GoPayLater Cicil loan products.

This collaboration is a continuation of the integration of the Jago application with the Gojek and GoPay applications.

"Bank Jago's financial performance until the second quarter of 2023 shows good momentum and on the right track. We want to grow our business even bigger by continuing to innovate as a technology-based bank and collaborate with the digital ecosystem," he concluded.