CoinWorks Group Reports Profitability For Two Business Licenses

Photo: Doc. CoinWorks

JAKARTA - CoinWorks Group announced profitability status for its two legal licenses, namely BPR CoinWorks Sejahtera Annua (KoinWorks Bank) and Lunaria Annua Teknologi (LAT).

CoinWorks Bank reported its first profit in January 2024, just a year after being acquired by the founder of CoinWorks and being part of the CoinWorks Group. Meanwhile, the LAT, which serves as a loan organizer for MSMEs, reported full year profits in 2023, after substantial investments in product development and backend automation.

Benedicto Haryono, CEO and Co-Founder of CoinWorks and owner of CoinWorks Bank, stated, with CoinWorks Bank and LAT reporting favorable results, it has validated its strategic focus on sustainable growth.

"This achievement confirms our dedication to providing value to stakeholders. We are also closer to our goal of achieving group profitability by the end of 2024," he said in a written statement, Sunday, April 21.

The founder of CoinWorks acquired the Asri Cikupa Karya People's Credit Bank (BPR) in January 2023 which later legally operated under the name CoinWorks Bank since October 2023. This strategic acquisition provides CoinWorks users with a Futures Deposito product option with a competitive return rate guaranteed by the Deposit Insurance Corporation (LPS).

The reported initial profitability was a direct result of a well-verified MSME customer portfolio with a conserved non-performing loan (NPL) level, which was recorded at 0.5 percent at the moment, and the proceeds from lower funding costs on time deposit products. Since the acquisition, CoinWorks Group has invested capital and sought to transform Bank CoinWorks into a digital platform for businesses and consumers, which is planned to launch in 2025.

In addition to CoinWorks Bank, at the end of January 2024, CoinWorks Group reported profits from Lunaria Annua Teknologi (LAT) for the full year of 2023. The company managed to develop its MSME credit portfolio, by disbursing productive loans of more than 10 trillion rupiahs throughout 2023.

The results of product development have finally paid off, in which CoinWorks indicated that the company was able to automate the process previously managed by software integration as a third party. This automation increases the efficiency of the company's overall cost. Concretely, it also contributes to a 25 percent increase in EBITDA in 2023, and a 65 percent increase in margin in the same period.

Reaching profitability in 2024 is not only an important milestone for CoinWorks Group, but also strengthens its ability to fulfill commitments to its stakeholders.

"The success of CoinWorks Bank reflects our ability to implement a change strategy effectively. Meanwhile, LAT's achievements in achieving full year's profitability in 2023 underscore our commitment to innovation and efficiency in serving MSMEs," added Benedicto Haryono.

By maintaining focus on the impact on serving MSMEs, financiers, and all users, CoinWorks ensures that the profitability earned can have more impact and meaningful support for all users.