Despite Losses, Neo Commerce Bank's Stock Price Soars 451% (year-to-date)

PT Bank Neo Commerce Tbk reported a loss of Rp 132.86 billion in the first half of 2021, compared to a profit of Rp 19.23 billion in the first half of 2020. The bank's operational expenses grew faster than its revenue, resulting in the loss for this bank owned by the fintech company Akulaku.

In the first half of 2021 financial report, net interest income only grew by 41.74% to Rp 136.12 billion compared to the first half of 2020. Meanwhile, other net operating expenses surged by 251.54% to Rp 268.68 billion in the first half of this year.

This private bank, formerly known as PT Bank Yudha Bhakti Tbk, had assets of Rp 6.99 trillion as of June 2021. This comprises equity of Rp 1.23 trillion and liabilities of Rp 5.76 trillion.

Bank Neo Commerce's financial ratios include a minimum provision ratio (KPMM) that decreased to 24.73% in June 2021 from 33.76% in June 2020. The non-performing loan (NPL) ratio increased to 3.42% from 2.75%. The return on equity (ROE) worsened to -25.06% in June 2021 compared to 4.18% previously, while the net interest margin (NIM) increased to 5.13% from 4.69%.

For information, the controlling shareholder (PSP) of Bank Neo Commerce is PT Gozco Capital with 20.13% as of June 2021. Non-controlling shareholders through the capital market include PT Akulaku Silvrr Indonesia (24.98%), PT Asabri (Persero) (15.36%), Yello Brick Enterprise Ltd (11.1%), and the public (22.44%). The remaining 5.99% of BBYB shares are held by non-PSP shareholders not through the capital market.

In contrast to its financial performance, the share price of the bank, traded under the code BBYB on the Indonesia Stock Exchange, has continued to rise. The bank's share price surged by 451.72% to Rp 1,950 on Friday, August 27, 2021, from its year-to-date (YTD) position at the end of 2020.