Deposits Finally Outran the Loan Book
The Q1 2024 post closed on an open question: would the quarter's near-exact offset between new loans and new deposits - the mismatch that left operating cash flow unable to cover the quarter's capital spending for the first time since 2021 - recur, or was it a one-off timing gap? Q2 2024 answers it. Total customer deposits grew Rp1,613,396 million (+12.2% quarter-over-quarter), from Rp13,195,628 million to Rp14,809,024 million, while gross loans and Sharia financing grew a smaller Rp1,398,558 million (+9.8% quarter-over-quarter), from Rp14,272,497 million to Rp15,671,055 million. For the first time in the last two quarters, deposit growth pulled ahead of loan growth rather than merely keeping pace with it, and the bank's cash flow statement shows exactly what that did: net cash flows generated from operating activities reached Rp548,492 million for the first half of 2024, against just Rp141,441 million in H1 2023 - a nearly fourfold increase. Capital expenditure (acquisitions of fixed and intangible assets, still mostly software and platform development) was Rp393,154 million, up from Rp333,069 million in H1 2023, meaning operating cash flow now comfortably covered it - a reversal from H1 2023, when capex had outrun operating cash flow.
Isolating Q2 2024 on its own makes the reversal sharper still. Subtracting Q1 2024's already-disclosed figures (Rp73,823 million operating cash flow, Rp217,441 million capex) from the H1 total implies Q2 2024 standalone operating cash flow of approximately Rp474,669 million - more than six times Q1's Rp73,823 million, and comfortably clear of the quarter's own capital spending. The quarter where capex outran operating cash flow, which this backfill flagged in March, lasted exactly one quarter.
The profit line moved in the same direction. Total net income for H1 2024 reached Rp49,966 million, up 23.3% YoY from Rp40,516 million in H1 2023. Backing out the Sharia Business Unit's own disclosed H1 2024 net income (Rp23,109 million) implies standalone conventional-bank net income of approximately Rp26,857 million for the half - and subtracting Q1 2024's already-disclosed implied conventional profit (~Rp7,593 million, per the Q1 2024 post) implies Q2 2024 standalone conventional-bank net income of approximately Rp19,264 million, nearly triple Q1's pace and the strongest single conventional-bank quarter in this backfill since Q2 2023's implied ~Rp31,400 million. The pattern the Q1 2024 post described - a bank whose loan book has gotten large enough that funding it can strain cash flow even while net income grows - held for exactly one quarter before the funding side caught back up.
The Prescription
Bank Jago should treat this quarter as confirmation, not correction, of what the Q1 2024 post recommended: keep the underwriting discipline that's now produced a sixth straight backfill-best NPL reading (0.38% gross / 0.01% net, down further from Q1's 0.61%/0.03%) while the loan book still grew 20.4% quarter-over-quarter, and don't treat the deposit-loan funding gap as a permanent slack the bank can spend down every quarter. This quarter's numbers show the gap can close on its own within a single cycle - deposits grew faster than loans this time, reversing Q1's near-exact offset - but that's a fact about how this particular half played out, not a guarantee the two will always land in the bank's favor. The Sharia Business Unit is the other place worth watching closely now: its financing book fell a further 52.9% this quarter alone (Rp154,056 million to Rp72,546 million) and its own standalone net income fell from Q1's Rp14,114 million to roughly Rp8,995 million in Q2 - still profitable, but shrinking sequentially as the book it earns from keeps disappearing. At the current pace, the unit's income is on a trajectory toward becoming immaterial to the consolidated result within a few more quarters, and the conventional bank's own recovery needs to keep accelerating to offset that loss of scale.
Key Financial Metrics
H1 2024 vs. H1 2023 - PT Bank Jago Tbk
FX: IDR 16,343 = USD 1 (30 June 2024 close; the nearest trading day for the equity price below was 28 June 2024, a Friday, since 30 June 2024 was a Sunday). The published statements for this period report the Bank on a standalone basis only - Bank Jago has no consolidated subsidiaries, consistent with every prior post in this backfill.
| Metric | H1 2024 (IDR) | H1 2024 (USD) | H1 2023 (IDR) | YoY |
|---|---|---|---|---|
| Net interest and Sharia income ("Net Revenue" equivalent) | Rp708,074M | ~$43.33M | Rp832,461M | ⚠️ -14.9%, driven by the Sharia unit's interest income collapsing further |
| Impairment losses on financial assets | -Rp114,923M | -~$7.03M | -Rp262,007M | ✅ -56.1%, tracking the NPL improvement below |
| Operating income | Rp65,023M | ~$3.98M | Rp44,720M | ✅ +45.4% |
| Income before income tax | Rp64,069M | ~$3.92M | Rp52,013M | ✅ +23.2% |
| Income tax expense (current + deferred) | -Rp14,103M | -~$0.86M | -Rp11,497M | +22.7%, an expense both years |
| Net income for the period | Rp49,966M | ~$3.06M | Rp40,516M | ✅ +23.3% - see above for the conventional-vs-Sharia split |
| Earnings per share (full amount, basic and diluted) | Rp3.61 | ~$0.0002 | Rp2.92 | ✅ +23.6% |
Net cash flows generated from operating activities were Rp548,492 million (H1 2023: Rp141,441 million), up nearly fourfold as deposit growth outpaced loan growth this half; capital expenditure (fixed and intangible assets acquired) was Rp393,154 million (H1 2023: Rp333,069 million) - against Rp3,542,654 million (~$216.85M) of period-end cash and cash equivalents. Operating income (the bank's own regulatory-format figure, netting impairment losses against revenue) is the closest bank equivalent to Adjusted EBITDA; the concept itself doesn't meaningfully apply to a deposit-taking institution.
| Balance sheet metric | Jun 2024 (IDR) | Jun 2024 (USD) | Dec 2023 (IDR) | QoQ |
|---|---|---|---|---|
| Total Assets | Rp24,248,993M | ~$1,483.99M | Rp21,295,840M | ✅ +13.9% |
| Loans and Sharia financing (gross) | Rp15,671,055M | ~$958.99M | Rp13,020,051M | ✅ +20.4% |
| Total customer deposits (current, savings, time) | Rp14,809,024M | ~$906.24M | Rp12,067,195M | ✅ +22.7% |
| Total Liabilities | Rp15,824,869M | ~$968.39M | Rp12,939,048M | +22.3%, tracking balance sheet growth |
| Total Equity | Rp8,424,124M | ~$515.51M | Rp8,356,792M | +0.8%, still essentially flat |
Operating cash flow fell short of covering capital spending for the first time since 2021 in Q1 2024. One quarter later, standalone operating cash flow is back up to approximately Rp474,669 million - because deposits grew faster than loans this time, not the reverse. The headline profit growth (net income up 23.3% YoY) is real, but the more important number is the one that shows this bank's cash generation depends on which side of the deposit-loan race wins each quarter, and that race can swing either way within a single cycle.
Key Operational Metrics
Ratios below are sourced from PT Bank Jago Tbk's own published financial ratios (30 June 2024 vs 30 June 2023) and its "1H24 Results Update" investor presentation.
- CASA ratio»: 61.2% (Jun 2024, calculated from Rp9,059,787M current + savings deposits ÷ Rp14,809,024M total deposits) vs. 62.7% (Mar 2024, per the Q1 2024 post) vs. 71% (Jun 2023, per the investor presentation) - a third straight quarter of decline from September 2023's 73.2% peak, as time deposits keep growing faster than CASA to fund loan growth.
- Loan-to-Deposit Ratio»: 105.74% (Jun 2024, per the bank's own filed ratios) vs. 108.05% (Mar 2024, per the Q1 2024 post) - improved for the first time in this backfill's recent run, consistent with deposits outgrowing loans this quarter.
- NIM»: 7.32% (Jun 2024 YTD, per the bank's own filed ratios; the 2Q24-only figure in the investor presentation is 7.2%) vs. 10.46% (Jun 2023 YTD) - a sixth straight quarter of decline on the presentation's own single-quarter series, which now runs 11.0% (1Q23) → 10.0% (2Q23) → 9.0% (3Q23) → 8.0% (4Q23) → 7.5% (1Q24) → 7.2% (2Q24).
- NPL»: 0.38% gross / 0.01% net (Jun 2024, per the bank's own filed ratios) vs. 0.61%/0.03% (Mar 2024, per the Q1 2024 post) vs. 1.20%/0.19% (Jun 2023) - a new backfill-best for a sixth straight quarter running, even as the loan book grew 20.4% quarter-over-quarter.
- CAR»: 50.28% (Jun 2024, per the bank's own filed ratios) vs. 55.02% (Mar 2024) vs. 72.83% (Jun 2023) - still falling every quarter as capital gets deployed into risk-weighted loans, now down to roughly 5x OJK's 10% minimum requirement.
- ROE» / ROA»: 1.50% / 0.57% (Jun 2024 YTD, per the bank's own filed ratios, annualized) vs. 1.29%/0.51% (Mar 2024) vs. 1.13%/0.57% (Jun 2023) - ROE improved both QoQ and YoY; ROA improved QoQ but is flat YoY, still far below what the stock's book-value premium (see Target Valuation Range) would imply is sustainable.
- Cost-to-Income»: 78.61% (Jun 2024 YTD, per the bank's own filed ratios) vs. 80.10% (Mar 2024) vs. 66.83% (Jun 2023 YTD) - worse YoY, but improving on a single-quarter basis: the investor presentation's own quarterly series shows Q2 2024 alone at 77%, down from Q1 2024's 80%.
- Cost of Funds (period-end, per the investor presentation): 3.1% (Jun 2024) vs. 3.1% (Mar 2024) vs. 3.6% (Jun 2023) - flat quarter-over-quarter, holding at the level it's sat at since Q4 2023 after rising from Q3 2023's 2.9% low.
- Undrawn loan commitments: Rp2,973,369M (Jun 2024: Rp1,111,945M committed + Rp1,861,424M uncommitted) vs. Rp2,387,805M (Mar 2024) - up 24.5%, reversing Q1 2024's first-ever quarterly decline in undrawn commitments and suggesting more of the loan pipeline is building back up rather than converting straight into drawn loans.
- KYC-verified digital banking and lending customers: 12.5+ million (Jun 2024, per the investor presentation), up from 11.1 million at Mar 2024.
- Headcount and branch network: still not disclosed in the filed financial statements' regulatory format, continuing the pattern flagged in every prior post in this backfill back to 9M 2023.
- Related-party loan concentration: not disclosed in this quarter's bare regulatory-format filing, the same gap flagged in the Q1 2024 post - the borrower-level breakdown from the FY2023 annual report remains the most recent confirmed figure.
The Sharia Unit's Book Shrank Another 53% - And Its Profit Is Fading With It
The Sharia Business Unit's financing book, which fell 64.0% in Q1 2024 alone to Rp154,056 million, kept shrinking: it stood at just Rp72,546 million at 30 June 2024, down 52.9% in a single quarter and down 83.1% since 31 December 2023. The unit's own disclosed Financing to Deposit Ratio» fell to 8.58%, from 148.20% a year earlier.
The profit trend is now tracking the book's decline rather than diverging from it. The Sharia Business Unit's own disclosed H1 2024 net income was Rp23,109 million, down 14.3% YoY from Rp26,953 million in H1 2023. Backing out Q1 2024's already-disclosed Rp14,114 million implies standalone Q2 2024 Sharia net income of approximately Rp8,995 million, down 36.3% quarter-over-quarter from Q1. The unit is still profitable - and its own disclosed non-performing financing ratio actually improved this quarter (2.76% gross / 1.85% net at Jun 2024, vs 3.24%/1.03% a year earlier), an unusual direction for a shrinking book, where a fixed rupiah amount of bad exposure normally inflates the ratio as the denominator falls. But the unit's cost of credit line flipped to a small net recovery of provisions (approximately +Rp1,000 million for H1 2024, against a Rp112,000 million expense a year earlier, per the investor presentation - see Beyond the Usual), consistent with a book being wound down faster than new problem loans can appear on it - not a business generating new returns.
The Stock Fell Further, Now Down 73.7% Over Two Years
Bank Jago's shares closed at approximately Rp2,410 on 28 June 2024 (the nearest trading day to period-end), down 9.7% from Rp2,670 three months earlier, and down 24.2% from Rp3,180 a year earlier (30 June 2023). No stock split has occurred at any point since the company's IPO, so Rp2,410 is the actual nominal price quoted on the IDX at the time. Zooming out to the full two-year window this backfill tracks, the stock closed at Rp9,150 in June 2022 and has fallen 73.7% since - a smaller decline than the Q1 2024 post's 77.1% two-year figure only because June 2022's starting price was itself already well down from the backfill's earlier peaks, not because this quarter's move was positive. The price kept falling even as the quarter's own numbers - operating cash flow surging back well above capex, NPL at a new backfill-best, the conventional bank's implied profit nearly tripling - were genuinely better than Q1's, a reminder that a single quarter's improving fundamentals don't automatically move a stock that's spent two years re-rating downward.
Beyond the Usual
The Sharia unit's cost of credit flipped to a net recovery as its book keeps shrinking
The Sharia Business Unit's own disclosed "Cost of Credit" line - Rp112,000 million of impairment expense in H1 2023 - flipped to an approximately Rp1,000 million net recovery in H1 2024, per the investor presentation's income-statement breakdown. This is the flip side of the book's 83.1% year-to-date collapse: with so little financing left outstanding, there's very little new impairment to book, and prior provisions are being released faster than new ones are created. It's a mechanical consequence of the wind-down, not evidence of improving credit quality on a comparable base.
310,000 new shares were issued this quarter at a price consistent with the bank's own MESOP strike
Issued and fully paid-in capital rose from Rp1,385,625 million to Rp1,385,656 million between 31 December 2023 and 30 June 2024 - a Rp31 million increase that, at the bank's Rp100 par value per share, implies approximately 310,000 new shares issued. The cash flow statement shows Rp666 million in "Proceeds from shares issued" for H1 2024 (versus zero in H1 2023), which works out to roughly Rp2,148 per share - close to the Rp2,150 strike price the H1 2023 post reported for the bank's first MESOP grant. This is the first quarter in this backfill where that option program shows up as actual share issuance rather than just an accrued expense line.
Undrawn loan commitments reversed their only-ever quarterly decline
The Q1 2024 post noted that undrawn loan commitments fell 5.4% quarter-over-quarter - the first such decline recorded anywhere in this backfill, read at the time as more of the committed pipeline converting into drawn loans. That reversed completely this quarter: undrawn commitments rose 24.5% to Rp2,973,369 million, with the uncommitted portion (Rp1,861,424 million) growing faster than the committed portion (Rp1,111,945 million). Read together with this quarter's stronger deposit growth, the bank appears to be rebuilding lending headroom rather than converting it straight into drawn loans.
The Sharia unit's asset base still doesn't track its own financing book
The FY2023 and Q1 2024 posts both flagged that the Sharia unit's total assets grew even as its financing book collapsed. That pattern continued again: Sharia marketable securities reached Rp1,446,988 million at Jun 2024, up 47.6% from Rp980,243 million at Dec 2023, while total Sharia assets grew to Rp1,809,131 million (up 9.7% from Rp1,648,603 million) even as the financing book itself fell another 83.1% year-to-date. The unit's own disclosed asset-to-conventional-bank-asset ratio fell to 7.46% (from 9.51% a year earlier), confirming its shrinking footprint even as its absolute assets keep growing.
The Sharia unit's own quarterly net income is now declining sequentially, not just year-over-year
Standalone Sharia net income fell from an implied Rp14,114 million in Q1 2024 to approximately Rp8,995 million in Q2 2024 - a 36.3% sequential drop, on top of the unit's book shrinking a further 52.9% over the same quarter. Every prior post in this backfill has framed the Sharia unit's YoY profit decline as a managed wind-down producing real, if shrinking, profit each period. This quarter is the first time that decline shows up quarter-over-quarter as well, which is the more relevant trajectory now that the book is down to Rp72,546 million: at the current pace of shrinkage, the unit's income is on track to become immaterial to the consolidated result within a few more quarters, removing what has been this backfill's largest single swing factor in the bank's total profit since Q1 2022.
Target Valuation Range
Market cap Rp33.39 trillion (~$2.04 billion), ~3.96x P/B, ~333.7x P/E. Bottom line: still overvalued on both an earnings and a book basis, though the gap has narrowed further as the price kept falling faster than book value grew.
Bank Jago's shares closed at approximately Rp2,410 on 28 June 2024, down 9.7% from Rp2,670 three months earlier (see above). Issued and fully paid-in capital of Rp1,385,656 million at a Rp100 par value implies approximately 13,856,560,000 shares outstanding (13,856,250,000 at 31 December 2023 plus the ~310,000 MESOP-related shares issued this half, see Beyond the Usual), for a market capitalization of approximately Rp33.39 trillion (~$2.04 billion).
| Market cap → book value | Q2 2024 |
|---|---|
| Share price (period-end) | Rp2,410 |
| Shares outstanding | 13,856,560,000 |
| Market capitalization | Rp33.39 trillion (~$2.04 billion) |
| Total equity (book value) | Rp8,424,124M |
| Book value per share | Rp607.94 |
| Peer-multiple sanity check | Q1 2024 | Q2 2024 | Change |
|---|---|---|---|
| P/B | 4.41x | 3.96x | down |
| P/E | 422.5x | 333.7x | down |
P/B»: ~3.96x, using book value» per share of Rp607.94 (Rp8,424,124M total equity ÷ 13,856,560,000 shares) - down from Q1 2024's ~4.41x, as this quarter's price decline outpaced book value's modest 0.8% growth. P/E»: annualizing H1 2024's basic EPS of Rp3.61 (×2, since this is a six-month cumulative filing), the implied multiple is roughly 333.7x - a single half's earnings run-rate can't capture how much quarterly profit has swung across this backfill's history, so this figure should be read as directional, not precise. A full DCF still isn't appropriate, for the same reason every prior post in this backfill has given: this quarter's own numbers show operating cash flow swinging more than sixfold quarter-over-quarter as the loan-deposit funding race flips in the bank's favor, and whose largest historical profit contributor (the Sharia unit) is now shrinking on both a YoY and QoQ basis. The peer-multiple read stays the honest one, and both multiples remain far above what a bank earning a sub-1% ROA» would typically command - the stock's two-year, 73.7% decline reflects the market repricing that gap downward, even as this specific quarter's fundamentals were genuinely better than the one before it.
PT Bank Jago Tbk's published financial statements for the six months ended 30 June 2024 (with 30 June 2023 and 31 December 2023 comparatives) and its "1H24 Results Update" investor presentation.