JAKARTA - PT Bank Jago Tbk (ARTO) is targeting net interest margin in H2 2024 to arrive at 7%, relatively stable compared to 7.3% seen in H1 2024. In H1 2023, its NIM was at 10.5%, before slipping to 9.5% in December 2023.

During Public Expose Live 2024 via Zoom today (29/8), Arief Harris Tandjung, President Director of ARTO, said that the target follows the potential decrease in cost of fund in the fourth quarter (Q4) of 2024, aligning with the projected interest rate cut triggered by interest rate cut initiated by the Fed.

In the meantime, the ratio of current account and savings account (CASA) to third-party funds (DPK) is projected to arrive at 60% in 2024. “Considering the growth of user funding from Jago App,” Tandjung explained.

As of July 2024, Bank Jago managed to raise user funding via Jago App from over 10 million users, 66% of which came from ecosystem partners.

DPK of Bank Jago was recorded at second quarter (Q2) of 2024, up 47% year-on-year (yoy) from IDR 10.1 trillion. Approximately 61% of DPK, or IDR 9.1 trillion, consisted of CASA, while the remaining 39% or IDR 5.7 trillion came from term deposits.

Then, net interest income of ARTO in first half (H1) of 2024 was reported at IDR 708 billion, down 15% yoy from IDR 832 billion seen in H1 2023. Income from commission increased 44% yoy to IDR 133 billion from IDR 92 billion, while operating revenue was corrected 9% yoy to IDR 841 billion from IDR 925 billion. (LK/ZH)