WeLab Bank announced that it achieved breakeven in December 2024, just over four years after its launch.
This update follows ZA Bank, which became the first Hong Kong digital bank to achieve monthly profitability in September 2024.
WeLab attributed this to its larger loan portfolio with reduced lending costs, diverse revenue sources, and improved operational efficiency.
Its corporate restructuring in 2023, which integrated the online lending platform WeLend as a wholly owned subsidiary, supported this progress by enhancing scale and operations.
WeLab Bank recorded a 26% year-on-year increase in net interest income, totaling nearly HK$700 million, and a 50% rise in net interest margin compared to pre-reorganisation levels.
Its credit-risk management strategies helped improve delinquency rates by 15% year-on-year, even as market conditions worsened.
Wealth management services also contributed to the bank’s growth, with assets under management increasing fourfold year-on-year.
The bank’s fee-free model for its Featured Funds Services, which includes zero administration fees and no investment limits for greater flexibility, and its goal-based digital advisory platform, GoWealth, have been key to this expansion.
According to the bank, 98% of GoWealth users saw positive returns.
In 2024, WeLab Bank expanded its offerings with global remittance services, USD deposits, and policy loans developed in partnership with Prudential Hong Kong.
The bank plans to build on this by introducing more products and exploring business banking services.
It also aims to invest in AI-driven “agents” to provide tailored investment products and loan solutions.
Tat Lee, Chief Executive, WeLab Bank, said,
“We are thrilled to deliver profitability for the first-time in the bank’s history. This underscores our commitment to sustainable and profitable growth.
Over the last few years, we have focused on accelerating our growth engine through innovative product offerings and cross-industry collaborations.”
He added that the progress of WeLab Bank’s strategic initiatives was supported by Hong Kong Monetary Authority’s measures such as the renaming of digital banks and the expanded Deposit Protection Scheme.
WeLab also operates Bank Saqu, a digital bank in Indonesia launched in partnership with Astra Financial, which has onboarded 2 million users to date.
It has also joined forces with Lightnet to apply for a virtual bank license in Thailand in a bid to expand its digital banking services across Southeast Asia.
