Jakarta, CNBC Indonesia – The share price of digital bank PT Bank Jago Tbk (ARTO) fell sharply to touch the level 3 years ago. Excessive speculation that was not matched by a performance breakthrough was the reason for the fall in the shares of this issuer owned by Jerry Ng.
Once upon a time, ARTO’s share price had penetrated IDR 19,000 / share on early 2022. In fact, in early 2021, the share price was still in the range of Rp. 3,500/share.
Last weekon Thursday’s trading close (27/4/2023), ARTO shares closed below IDR 2,000 per share for the first time since mid-2020, to be exact IDR 1,995 per share.
This means that compared to the all-time high of IDR 19,000/share, ARTO shares have fallen almost 90%.
In the next three trading days, ARTO shares were able to move in the green zone and returned to the 2,000 level, but they were still far from the peak price the company had ever recorded.
The fall of ARTO stock can be pulled away from excessive speculation in the era’boommini bank’ two years ago.
at that time,the price of shares of small-capital banks, or mini-banks, has soared skyward in 2021 amid the obligation to fulfill core capital by the authorities and speculation on the market about the existence of strategic investors who are ready to inject funds into these small bank issuers and turn them into digital banks.
Speculation is just speculation if it is not accompanied by soaring financial performance.
Indeed, Bank Jago, which before being bought by Jerry Ng et al at the end of 2019 was called Bank Artos, has now posted a profit. More precisely, in full year 2021 with a profit of IDR 86 billion, after losing 6 consecutive years.
However, in 2022, profit Bank Jago has sunk 81.50% to IDR 15.91 billion in 2022.
This negative performance was dragged down by inflating a number of expenses, including from an operational, financial and other perspective.
In the latest performance, in the first quarter of 2023, Bank Jago’s net profit fell 7.56% yoy to IDR 17.50 billion due to swelling operating expenses.
The good news is that net interest & sharia income grew to IDR 422.73 billion in the first quarter of 2023 from the same period the previous year IDR 316.31 billion.
Bank Jago’s return on assets (ROA) profitability ratio is also low, only 0.51%, far below the industry’s rate of more than 2.5%.
This means, performance bottom line Bank Jago has not been as convinced as the speculation circulating about the future of digital banks and other advances. In other words, Bank Jago still needs to finish some housework and ‘clean up’ here and there.
In addition, as Bank Jago’s share price dropped from its ATH level, practically the market capitalization (market cap) fell from Rp. 250 trillion to the current Rp. 29 trillion left.
Indeed, the figure of IDR 29 trillion is not a small number, it’s just that this has also affected the flow of foreign funds that have the potential to enter ARTo.
It shows when there was news in mid-February that ARTO had finally come out of the calculation of the latest MSCI index.
As is well known, MSCI and the FTSE used to be the reference index for foreign funds to see potential Indonesian stocks.
The follow-up effect of the drop in ARTO’s shares is the boss Jerry Ng was kicked out of the list of Indonesia’s richest people.
According to Forbes data, Jerry Ng was ranked 35th out of the list of the 50 richest people in RI with a fortune of US$1.2 billion in 2022 before leaving the elite list.
CNBC INDONESIA RESEARCH
research@cnbcindonesia.com
(fsd/fsd)
2023-05-03 08:32:35
#Bank #Jago #Shares #Drop #Digital #Bank #Fever #Officially
