GXBank Targets 2028 Profit Amid Loan Growth, Asset Cap Review
The Malaysian digital bank reported a wider first-half net loss of RM122.1 million in 2026, while securing an IFC risk-sharing agreement for MSME lending.
Financial Performance and Profitability Goal
GXBank aims to achieve its first full-year profit by 2028, even as its net loss for the first half of 2026 widened slightly to RM122.1 million from RM119.9 million in the same period of 2025. The digital lender saw its operating income more than triple to RM61.4 million.
However, allowances for credit and other losses significantly increased to RM61.9 million, up from RM18.6 million previously. By the end of June 2026, gross impaired loans represented 1.88% of its total loan book, an increase from 1.03% six months earlier.
The bank also targets pre-provision operating break-even by March 2027 and break-even before interest, taxes, depreciation and amortisation (EBITDA) by September 2027.
Seeking Asset Cap Removal
GXBank is seeking approval from Bank Negara Malaysia (BNM) to exit its foundational phase, a move that would lift the current RM3 billion asset ceiling. As of 30 June 2026, the digital bank held total assets of RM2.54 billion, with customer deposits reaching RM2.03 billion. Its gross loans stood at RM1.21 billion.
CEO Kaushik Chowdhury confirmed that BNM is evaluating the bank's application, which would remove the asset limitation typically applied during the initial three-to-five-year operational period.
Expanding Lending with IFC Support
To bolster its lending activities, GXBank has partnered with the International Finance Corporation (IFC) through a risk-sharing agreement. This collaboration supports loans to micro, small, and medium-sized enterprises (MSMEs), covering an eligible loan portfolio of up to US$110 million. The IFC's maximum first-loss exposure under this arrangement is US$4.95 million.
GXBank currently serves over 1.6 million customers, with its retail lending book estimated at around RM1 billion. Its FlexiCredit product has attracted more than 100,000 customers, with access expanded in August through TNG eWallet’s CashLoan service.
The potential removal of GXBank's asset cap by Bank Negara Malaysia would allow for significant expansion of its balance sheet and lending operations beyond the current RM3 billion limit. This regulatory milestone, coupled with the IFC's backing for MSME loans, signals a more aggressive growth trajectory for the digital bank.
Investors will be watching for the outcome of the BNM assessment and the bank's progress towards its stated profitability targets for 2027 and 2028, particularly how its loan growth and credit loss provisions evolve. This expansion could intensify competition within Malaysia's digital banking sector.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
Comments.
Comments are moderated. We remove what is unlawful, abusive or off-topic, and and you remain responsible for what you post.
Reader comments open soon. Until then, corrections and responses go to our newsroom, and we publish what we get wrong on Corrections.