KoinWorks flaunts profitability of two business lines
JAKARTA. KoinWorks, a financial service with 2.5 million users across Indonesia, is revealing the profitability of its two business lines, BPR KoinWorks Sejahtera (KoinWorks Bank) and Lunaria Annua Teknologi (LAT).
This is the first round of profit booked by KoinWorks Bank since the acquisition initiated by KoinWorks’ founders. Meanwhile, LAT, this personal loan business line for MSME, has scored profit in 2023 after investing in products and backend automatization.
Benedicto Haryono, CEO and Co-Founder of KoinWorks, said that the profit generated by KoinWorks Banka and LAT becomes the validation for the strategic focus in sustainable growth implemented by KoinWorks Group. “This achievement confirms our dedication in generating value for stakeholders. We also become closer to our intention to generate group profitability at the end of 2024,” he explained in the official disclosure.
For the record, KoinWorks Group had previously acquired People’s Credit Bank of Asri Cikupa Karya in January 2023. This bank then started to officially operate under KoinWorks Bank title in October 2023. This acquisition allows an option of Term Deposit products to KoinWork’ users with competitive return, also guaranteed by Indonesia Deposit Insurance Corporation (lit. Lembaga Penjamin Simpanan/LPS).
After this acquisition, KoinWorks Group has increased KoinWorks Bank’s capital in order to promote its transformation to digital vessel for consumer business, which is projected to launch in 2025. The non-performing loan (NPL) ratio of KoinWOrks Bank is maintained at 0.5%.
Meanwhile, LAT’s positive performance is shown through channelled credit that has exceeded IDR 10 trillion in 2023. With several existing initiatives and business strategies, LAT managed to score EBITDA surge of 25% and margin surge of 65% throughout 2023.
“KoinWorks Bank’s success reflects our ability to implement the transformative strategy effectively. Meanwhile, LAT’s achievement in attaining profitability in 2023 further reaffirms our commitment towards innovation and efficiency in serving MSMEs,” added Haryono. (KR/ZH)
