JAKARTA : Indonesian digital lender PT Bank Neo Commerce expects to book its first full-year profit next year since launching its online services in 2021, its president director said, even as lenders in the sector compete to offer high deposit rates to lure customers.
Backed by tech firm PT Akulaku Silvrr Indonesia, which is part of China's Alibaba group, BNC expects to close 2023 with a 30 billion rupiah to 50 billion rupiah profit, President Director Tjandra Gunawan said in an interview on Thursday, following its first three-month net profit in the third quarter.
"Number of users is important, but it's more important to ensure stickiness of customers," Tjandra said.Tjandra also pledged that its high deposit rate of up to 8 per cent per year would not be a one-off.BNC's net interest margin , an indicator of profitability and as of September at 12.7 per cent, was sufficient even with high deposit rates, he said.
Suria Dharma, a director of securities firm Samuel Sekuritas Indonesia, said a high deposit rate strategy may pose a challenge in the long-run with the cost of funds currently high, which could hit banks' NIM, as global interest rates rise to tame inflation.