WeLab Bank announced today its achievement of first-time breakeven in December 2024 - just over 4 years after its establishment.
This milestone exemplifies WeLab Bank’s ability to achieve profitability at a pace faster than anticipated, and surpasses most of the digital banks, which typically take 5-7 years to break even. The accomplishment was facilitated by an expanded loan book with reduced lending costs, diversified revenue streams and improved operating efficiency. With this robust performance, the Bank is confident to continue sustainable profitability in 2025 and beyond.
After last year’s corporate reorganization, online lending platform WeLend now operates as a wholly owned subsidiary of WeLab Bank. This refined structure has significantly bolstered the Bank’s scale, enhanced synergy and optimized the future path in the following ways:
• As the top 3 lender in the market for new monthly disbursements, while improving its delinquency rate by 15% YoY when the market deteriorated by 7% YoY, highlighting the effective implementation of its advanced credit-risk management technology.
• Increased net interest income by 26% YoY, reaching nearly HK$ 700 million.
• Grew net interest margin by 50% compared to pre-corporate reorganization, attributable to strengthened capital scalability, reduced lending costs, and excellence in provision management.
WeLab Bank’s wealth management service has become one of the key growth drivers, with total AUM increased by 4 times YoY. This growth stems from the Bank’s unique charging model - its Featured Funds Services are the first in the banking industry to charge zero administration fees and impose no investment limits to provide customers with greater flexibility. 98% of GoWealth customers, utilizing the Bank’s goal-based digital wealth advisory solution, yielded positive returns. Beyond the success of core businesses, WeLab Bank remains at the forefront of product innovation, introducing new offerings such as global remittance services, USD deposits, and policy loans in partnership with Prudential Hong Kong last year.
Looking ahead, WeLab Bank is poised to drive sustainable development through more new products launched, diversified business segments and AI-driven intelligent banking enhancement. Building upon a solid loan foundation, the Bank will further explore business opportunities that generate fee income, such as strengthening wealth management services, replicating the success from the partnerships with Apple and Tesla with more different industrial partners, and exploring the introduction of business banking services. By reinvesting in AI innovation, WeLab Bank aims to create a continuous cycle of cutting-edge solutions, further solidifying its commitment to innovation and customer-centric financial services. The Bank is exploring in the development of “AI agents” to deliver tailored investment products and loan solutions.
WeLab Bank Chief Executive Tat Lee 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. This achievement reflects the success of our strategic initiatives, cementing our leading position in the digital banking landscape.
Initiatives launched by the Hong Kong Monetary Authority, such as the renaming of digital banks and the expanded Deposit Protection Scheme, have catalysed industry development, fortifying our confidence in sustaining strong growth momentum in the years ahead."