PT Bank Neo Commerce Tbk, a digital bank backed by fintech firm Akulaku, swung to a profit in 2024, driven by a decline in expenses, according to an announcement on Thursday.
The bank recorded a net profit of 19.88 billion rupiah during January-December 2024, compared with a loss of 573.18 billion rupiah during the same period of 2023.
Bank Neo’s interest income declined by 5.51% to 2.74 trillion rupiah in 2024 from 2.9 trillion rupiah in 2023. However, operating expenses, including marketing, general, and employee expenses, came down to 3.29 trillion rupiah from 4.11 trillion rupiah.
“We achieved profitability by strengthening our fundamentals, improving loan quality, and enhancing efficiency,” Eri Budiono, President Director of Bank Neo Commerce, said in a statement on Thursday.
Loan disbursements declined to 8.82 trillion rupiah in 2024 from 10.78 trillion rupiah in 2023. However, the bank’s bad debt ratio improved to 0.3% in 2024 from 0.95% in 2023.
“We remain committed to strengthening our fundamentals by improving governance, particularly in compliance and credit management. This will support sustainable growth, enhance customer services, and boost profitability,” Budiono added.
The bank’s deposits also declined to 13.06 trillion rupiah in 2024 from 13.87 trillion rupiah in 2023. Meanwhile, the bank’s total assets fell to 17.41 trillion rupiah from 18.17 trillion rupiah.
Looking ahead at 2025, Bank Neo Commerce is aiming for a 12-15% loan growth and expects to remain profitable. The bank claims to have booked a profit of 110.91 billion rupiah during the first two months of 2025.
DealStreetAsia reported in September last year that Bank Neo Commerce had set a target to book profitability for 2024 by optimising its loan disbursement. It has developed a series of new loan products including short term and non-collateral loans. At the same time, the bank has developed commercial and corporate loans for medium and large enterprises.
Bank Neo Commerce plans to increase its public ownership to raise more capital via a rights issue as its majority shareholder, Akulaku, cannot increase its stake due to banking regulations. Akulaku currently owns a 34.45% stake in Bank Neo Commerce, while Rockcore Financial Technology owns 5.52%, PT Gozco Capital 7.21%, and the public 52.2%.
