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Bank Jago brings down loss in first half with rapid credit growth
Bank Jago booked a net loss of Rp 46.77 billion (US$3.23 million) in the first half of the year, down from nearly Rp 51 billion a year earlier. The fall in the net loss followed a 695 percent annual increase in loan disbursement to Rp 2.17 trillion.
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Publicly-listed digital bank Bank Jago launched a mobile app on April 15, 2021. (Courtesy of Bank Jago)
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ublicly listed Bank Jago booked a smaller net loss in the first six months as the digital bank achieved higher interest income on the back of rapid credit growth.
Bank Jago booked a net loss of Rp 46.77 billion (US$3.23 million) in the first half of the year, down from nearly Rp 51 billion a year earlier. The fall in net loss followed a 695 percent annual increase in loan disbursement to Rp 2.17 trillion.
“Our performance is still not positive because of the investment factor. We think that is normal and still in line with our initial plan. This investment will pay off in the future,” president director Kharim Siregar was quoted in a news release as saying on Monday.
The digital bank continued to invest in information and technology, application development and talent acquisition, resulting in operating expenses of Rp 183 billion.
Read also: ‘Bank Jago effect’: Small banks’ shares surge on consolidation, digital bank boost
Bank Jago, traded under the ticker symbol ARTO on the local bourse and valued at over Rp 241 trillion, is riding on the pandemic-induced growth in the digital economy. The company’s share price rose to a record-high Rp 17,000 following its latest financial statement.
The bank maintained its nonperforming loan (NPL) ratio at 0 percent, freeing itself from a huge sum of provisions made by other commercial banks during the pandemic.
