WeLab Bank achieved profitability in the first quarter (Q1) of 2025, following its breakeven milestone in 2024—reached in just four years, significantly faster than the global industry benchmark of five to seven years. WeLab reported over 30% year-on-year (YoY) growth in net revenue to around HKD 750 million (USD 96 million), with its unsecured retail loan portfolio reaching HKD 5.5 billion (USD 709 million). Net interest margin also rose 0.6% YoY to 9.4%. The bank has carried this momentum into 2025, recording profitability in Q1 and remaining on track to meet its full-year profitability target. These results demonstrate a transformative year for WeLab Bank, marked by exceptional growth and solidifying its position as Hong Kong’s leading digital bank. With an 11% share of new unsecured personal loans, it maintains its leading position among all banks in Hong Kong. Benefitting from its core competence in credit risk technology, despite market delinquency worsening 13% year-on-year (YoY), WeLab achieved a lower-than-market delinquency rate with a 37% improvement in credit performance. WeLab’s financial foundation remains robust, with total deposits growing 120% YoY and its loan-to-deposit ratio (LDR) maintained at about 80%, highlighting its capital efficiency and profitability. Wealth management emerged as a key growth driver in 2024, with total assets under management (AUM) increasing nearly 300% YoY. Fee income from wealth management grew by over 70% YoY, fueled by strong demand for its first-in-market monthly fee-featured fund services, which offer zero transaction fees and no investment caps. By tailoring its digital offerings to meet the personal financial needs of Mainland Chinese Visitors (MCVs) to Hong Kong, the bank recorded an eightfold increase in MCV customer onboardings in the second half of 2024 compared to the first half. Looking ahead, the bank is harnessing the transformative potential of AI agents to deliver hyper-personalised financial offerings, meeting the evolving customer needs and elevating their banking experience. Re-disseminated by The Asian Banker
