WeLab Bank announced its achievement of first-time breakeven in Dec of 2024 – which is just over 4 years after its establishment.
This milestone exemplifies WeLab Bank’s ability to achieve profitability “at a pace faster than anticipated.”
As mentioned in the announcement, the accomplishment was facilitated by an expanded loan book with “reduced lending costs, diversified revenue streams and improved operating efficiency.”
With this solid performance, the bank said that it 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 reportedly 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.”
The bank increased net interest income by “26% YoY, reaching nearly HK$ 700 million.”
The bank 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 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 new products launched, “diversified business segments and AI-driven intelligent banking enhancement.”
Building upon a loan foundation, the Bank will 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 cycle of solutions, “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 catalyzed industry development, fortifying our confidence in sustaining strong growth momentum in the years ahead.”
As covered, Welab Bank’s mission is to understand customers’ needs and design a personalized, intelligent banking experience that helps them manage, save and grow their money.
WeLab Bank represents a 100% digital banking experience “that is simple, intuitive, and built around our customers.”
It focuses on the mobile app and intelligent banking services, and delivers an innovative banking experience through “partnering with reputable brands including Allianz Global Investors, Tesla and Apple Authorized Resellers.”
WeLab Bank is a wholly owned subsidiary of WeLab Holdings Limited, a pan-Asian fintech platform.
WeLab provides a range of digital financial services with “positions in Hong Kong, Mainland China, and Indonesia, with nearly 70 million individual users and over 700 enterprise customers.”
WeLab is backed by the investors including Allianz, International Finance Corporation (a member of the World Bank Group), Malaysian sovereign wealth fund Khazanah Nasional Berhad, CK Hutchison’s TOM Group, and Sequoia Capital.
