- Tonik triples interest income to $19.9 million in 2023.
- The neobank achieves profitability across consumer lending products.
- Tonik targets cash flow breakeven by 2025, focusing on loan portfolio growth.
Cashing in on cyberspace
Singapore-based Tonik Financial, the first licensed neobank in the Philippines, is making waves in the digital banking sector.
Despite fierce competition, Tonik has tripled its total interest income to US$19.9 million in 2023. The company’s net interest income soared to US$12.6 million, a dramatic turnaround from the previous year’s negative US$0.7 million.
Loans that pay off
Tonik founder Greg Krasnov reports profitability across all three consumer lending product lines in the Philippines.
The acquisition of TendoPay’s Philippine business in late 2022 further diversified Tonik’s portfolio, introducing payroll-enabled financial services.
Partnerships with home appliance retailers have also boosted the bank’s shop installment loan offerings.
Digital dollars and sense
Despite lagging behind competitors in customer numbers, Tonik remains focused on loan portfolio growth rather than deposit expansion.
The bank aims for cash flow breakeven by 2025, buoyed by improved loan quality indicators. Krasnov dismisses concerns about high non-performing loan ratios, emphasizing Tonik’s 3x improvement in vintage-based cost of risk and early vintage quality indicators since late 2022.
To read the original article: https://www.techinasia.com/tonik-2023-financials?ref=featured-subex-0
