Heaptalk, Jakarta — KoinWorks Group has achieved a significant milestone, recording its first profit from two legal licenses: BPR KoinWorks Sejahtera Annua (KoinWorks Bank) and Lunaria Annua Teknologi (LAT) with an unspecified amount.
In more detail, KoinWorks Bank has demonstrated its potential, reporting its first profit in January 2024, a mere year after being acquired by KoinWorks founders and integrated into the Group. The reported initial profitability is a direct result of a well-diversified portfolio of MSME customers with a maintained level of non-performing loans (NPL) currently at 0.5% and the result of the low cost of funds on deposit products.
This bank, formerly known as Asri Cikupa Karya People’s Credit Bank (BPR), was acquired in January 2023 and rebranded as KoinWorks Bank in October 2023. This strategic acquisition provides KoinWorks users with a term deposit product option with a competitive rate of return guaranteed by the Deposit Insurance Corporation (LPS).
Since the acquisition, the Group has injected capital and is working to transform the Bank into a digital platform for businesses and consumers, which is planned to be launched in 2025.
Disbursing loans of more than US$614.9m
KoinWorks CEO and Co-Founder Benedicto Haryono, who owns KoinWorks Bank, said the profit report validated the Group’s strategic focus on sustainable growth. “This achievement confirms our dedication to delivering value to stakeholders. We are also closer to achieving Group profitability by the end of 2024,” Benedicto said.
Meanwhile, LAT, a fintech lending for MSMEs, reported full-year profits in 2023 after making large investments in product development and backend automation. The company succeeded in developing its MSME credit portfolio by disbursing productive loans of more than Rp10 trillion, approximately US$614.9 million (US$1 equals Rp16,260) throughout 2023.
The results of the product development carried out finally bore fruit. KoinWorks indicated that the company could automate processes previously managed by software integration as a third party. This automation increases LAT’s overall cost efficiency. Concretely, this also contributes to a 25% increase in EBITDA by 2023 and a 65% increase in margins over the same period.
“KoinWorks Bank’s success reflects our ability to implement change strategies effectively. Meanwhile, LAT’s full-year profitability in 2023 confirms our commitment to innovation and efficiency in serving MSMEs,” Benedicto concluded.
