WeLab Bank, Hong Kong’s largest digital bank, reported continued profitability in the first half of 2025, with revenues of HKD 460 million ($60 million), up 70% year on year.

Since December last year, WeLab Bank has continued to remain profitable, supported by prudent credit management, advanced risk controls, and precise, flexible pricing.

With these advantages, WeLab Bank has solidified its leadership position in Hong Kong’s digital banking sector. Key highlights for the first six months of 2025 include:

• Net revenue ranked number one at approximately HKD 460 million (~$60 million), representing a year-on-year (YoY) growth of around 70%.
• Net interest income of HKD 430 million ($55.2 million), reflecting a robust YoY increase of around 70%.
• Net interest margin (NIM) of 10.7%, up 55% YoY and far exceeds the market’s low single-digit average, reinforcing its leading position in Hong Kong’s banking sector.
• Net credit margin (NCM) of 7%, reflecting strong risk-adjusted returns and underlining the bank’s rigorous approach to credit management and risk control.

The cost-to-income ratio also improved substantially by 40.3% YoY, supporting scalable growth without significant increases in expenses. The loan-to-deposit ratio (LDR) remained steady at around 80%, showcasing our ability to optimise capital efficiency.

Superior credit risk management versus the market

In a challenging macroeconomic environment, WeLab Bank’s advanced credit risk technology enabled it to outperform the market. While Hong Kong’s overall market delinquency rate rose 8.5% YoY, WeLab Bank’s delinquency rate fell 3.7%, nearly 2.5 times better than the overall industry. In lending, WeLab Bank captured 11% of Hong Kong’s total new unsecured personal loans, maintaining a market-leading position in monthly new loan volume. In addition, assets under management (AUM) also surged nearly 340% YoY, going from strength to strength.

Tat Lee, chief executive of WeLab Bank, said, “In the first half of 2025, we continued to sustain profitability, delivering strong revenue growth, a net interest margin significantly above market levels, and a delinquency rate far below the industry average — all driven by our strength in credit risk management. As an artificial intelligence (AI)-first digital bank, WeLab Bank is committed to delivering hyper-personalised and impactful customer experiences with generative AI and AI agents. Earlier this year, we forged a strategic AI-first strategic partnership with Google. In addition to launching WeLend’s first-ever fully AI-generated advertisement in Hong Kong powered by Google Gemini, we will continue to co-innovate by exploring new applications and adopting Google’s AI agents and models to accelerate advancements across operations, product design and marketing. Through hyper-personalised financial innovation, we aim to empower customers to achieve their wealth management goals.”

Advancing AI + financial innovation

WeLab Bank plans to continue investing in AI development and together with strategic partner Google, will expand its business in three major directions:

• Launching new financial solutions, such as personalised loans, foreign exchange and wealth management offerings;
• Developing innovative AI tools to further enhance operational efficiency and decision-making;
• Leveraging Google’s strengths in AI, data and security to elevate and transform employees’ ability to apply and innovate with AI.

Re-disseminated by The Asian Banker