Bank Jago, Owned By Conglomerates Jerry Ng And Patrick Walujo, Earns IDR 86 Billion In Profit After Previously Lost 190 Billion

JAKARTA - The company owned by conglomerates Jerry Ng and Patrick Walujo, PT Bank Jago Tbk (ARTO) managed to achieve a net profit after tax of IDR 86 billion in 2021.

Bank Jago President Director, Kharim Siregar, said this achievement was supported by solid credit growth and cost efficiency while maintaining a low non-performing loan (NPL) ratio.

"Achieving a profit in 2021 is the start of Bank Jago's business. With the foundation we have built in the past two years, we believe that future growth will be more solid and faster", said Kharim, in a press release, Friday, March 11.

Previously, Bank Jago had always been at a loss since 2015. In 2020, Bank Jago closed the year with a loss of IDR 190 billion, lower than the company's initial estimate.

The loss was due to increased operational costs due to technology investment. Bank Jago also reported a net profit before tax of IDR 9 billion in 2021.

This gain was driven by aggressive credit growth, a low NPL ratio, and an improved cost of funds structure. Furthermore, Bank Jago's credit distribution reached IDR 5.37 trillion in 2021 or an increase of 491 percent from the end of 2020 of IDR 908 billion.

"We started from a low baseline so the percentage increase looks very high", said Kharim.

Even so, Kharim also believes that this is driven by the right business model and collaboration with the digital ecosystem to make lending more significant. Collaboration allows expansion to be carried out quickly, efficiently, and risk management is more controlled.

This is reflected in the ratio of non-performing loans (NPL) which is at the level of 0.6 percent.

"Collaboration is our way of serving micro, small and medium business customers as well as the wider community and retail in an effective and fast manner. Through this financing, we want to contribute to the economic recovery due to the pandemic", said Kharim.

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By 2021, Bank Jago has collaborated with several fintech lending, multi-finance, and other digital financial institutions in financing partnerships (partnership lending). The collaboration also completes the integration of Bank Jago with the Gojek super app, the online mutual fund application, Bibit, and the Stockbit online trading platform.

From company records, high credit growth pushed interest income up 624 percent to IDR 652 billion. Meanwhile, interest expense was raised by 147 percent to IDR 63 billion. Thus, net interest income was recorded at IDR 590 billion or grew 812 percent.

Then, the net interest margin (NIM) was recorded at 7.4 percent, higher than the same period last year of 4.7 percent. Not only net interest income, but Bank Jago also achieved a fee-based income of IDR 56 billion or grew almost twice as compared to the same period the previous year.