Gojek-backed Bank Jago posts 8x jump in revenue to $24m for Q1 2022

Gojek-backed Bank Jago recorded 347 billion rupiah (around US$24 million) in interest income for the first quarter of 2022, growing by more than 8x from the same period last year.

Meanwhile, its interest expense widened only by around 3.5x year on year to US$2.1 million for the same period. Net interest income went up by more than 9x to US$21.8 million compared to Q1 2021.

Photo credit: Bank Jago

The digital bank’s strategy of building up partnerships with other financial firms for disbursing loans looks to be the major contributor to this positive trend. It has teamed up with 32 companies, resulting in almost a 5x year-on-year surge in loan disbursements to US$424.4 million in Q1 2022. More than a third of the company’s loan value came from the newly-launched Shariah unit.

Despite the growth in disbursements, the firm said that only 0.4% of its loans are non-performing.

Bank Jago earned US$1.3 million in net profit after tax in Q1 2022. It boosted net interest margin – a key profitability metric – to 11.1% from 7.7% a year prior.

Another factor in the bank’s profitability is the increase in the number of current account savings accounts (CASA) it handles, which combines the features of both types of accounts.

See also: How Gojek-backed Bank Jago is taking on Sea, Akulaku’s digibanks

The offering, which the bank deems as “low cost,” currently covers 54.4% of its total cash handled across its savings products. At the same time, total cash in the savings accounts of Bank Jago users increased to US$291.1 million in Q1 2022, a 4.5x surge from the same period last year.

Its number of users also increased from 1.4 million at the end of last year to 2.3 million for Q1 2022.

Currency converted from Indonesian rupiah to US dollar: US$1 = 14,278 rupiah.