Bank Jago, A Company Owned By Conglomerates Jerry Ng And Patrick Walujo Earns IDR 29 Billion Profit In Second Quarter 2022, Number Of Customers Already 3 Million

JAKARTA - The technology-based banking company owned by conglomerates Jerry Ng and Patrick Walujo, PT Bank Jago Tbk (ARTO) earned a net profit of IDR 29 billion in the second quarter of 2022. This achievement was driven by positive third-party funds (DPK), lending, and the number of digital banking users.

"The combination of an improved fund structure and high credit growth has a positive impact on net profit after tax until the second quarter of 2022 of IDR 29 billion, in contrast to the second quarter of 2021 which still recorded a loss," said Bank Jago President Director Kharim Siregar in an official statement, Thursday, July 21.

Kharim explained, the high public acceptance of the Jago Application pushed the number of funding customers to reach more than 3 million customers by the end of June 2022. This number of customers grew more than 100 percent in 6 months or recorded 1.4 million customers at the end of 2021.

The increasing number of customers pushed third-party funds (DPK) to grow by 253 percent to IDR 6.1 trillion year on year (yoy). On a year-to-date basis, DPK grew 65.9 percent compared to the end of 2021 which was recorded at IDR 3.68 trillion.

In more detail, current account savings accounts (CASA) increased 643 percent yoy to IDR 3.87 trillion, while time deposits grew 85 percent to IDR 2.23 trillion. This has made the cost of funds structure better as reflected in the ratio of CASA to total TPF reaching 63 percent.

The increase in CASA made Bank Jago able to keep interest expenses and sharia expenses low, which was IDR 64 billion in the second quarter of 2022, up 200 percent from the previous year.

Meanwhile, Bank Jago's interest income and sharia income grew higher, increasing 340 percent to IDR 705 billion in the second quarter of 2022.

Thus, net interest income was recorded at IDR 641 billion or grew 361 percent yoy. Interest income and sharia income were driven by the distribution of sharia credit and financing which grew 234 percent to IDR 2.17 trillion.

On a year to date basis, Islamic lending and financing increased by IDR 1.89 trillion, or grew 35 percent compared to the end of 2021 which was recorded at IDR 5.37 trillion. High growth in lending and sharia financing is supported by collaboration with a number of fintech lending, multifinance, and other digital financial institutions in partnership lending. This completes the integration of Bank Jago with the Gojek super-app, the Bibit online mutual fund application, and the Stockbit online trading platform.

As of the end of the second quarter of 2022, Bank Jago has collaborated with 34 institutions, such as Atome, Kredit Pintar, Home Credit, Carsome Indonesia, and BFI Finance.

"We will continue to expand and deepen collaboration with the financial ecosystem. This is our strategy to actively visit customers wherever they are," said Kharim.

Furthermore, the high growth in deposits has boosted the liquidity ratio or loan to deposits ratio (LDR) to 119 percent at the end of the second quarter of 2022 from 146 percent at the end of 2021.

Bank Jago recorded a NIM of 10.8 percent and has a capital adequacy ratio (CAR) of 110 percent, strong enough to support future business expansion. Lau, the company's total assets amounted to IDR 14.61 trillion, grew 44.8 percent compared to the same period the previous year.