Tech group Grab is targeting for its digital bank operations to turn profitable in 2026, chief operating officer Alex Hungate said in an investor presentation on Tuesday (Sep 27).
Grab Stock Jumps 4% in Morning Trading.
The company recently launched its Singapore digital bank, GXS Bank, in a joint venture with Singtel. Grab has also clinched a digital banking licence in Malaysia, and over in Indonesia, owns a stake in Bank Fama.
The Malaysian and Indonesian digital banks are set to launch in 2023, Hungate said in his Tuesday presentation. With this, losses are expected to peak next year.
“In 2023, we will spend more than we spent this year on digital bank build. But that will be the peak of the losses (for) investment of the digital bank. And thereafter this strategy will allow us, after the peak losses in 2023, to move to a breakeven position by 2026,” Hungate said.
Growth will largely be driven by the growth of lending products with improved margins, he added.
Nasdaq-listed Grab ended Monday at US$2.81, up 2.2 per cent.