Grab Holdings reported The financial services and digital banking sector is expected to grow significantly in Q3 2024 due to the expansion of lending and deposit services.
Revenues from financial services increased 34% year-on-year (YoY) to US$64 million and increased 38% at constant currency.
This growth is due to the expansion of GrabFin’s lending operations, new contributions from digital banks, and optimization of payment incentives.
The total loan portfolio increased 81% year over year to US$498 million, and total loans disbursed during the quarter increased 38% year over year to US$567 million.
This marks a significant increase in Grab’s ecosystem-driven lending activities.
Deposits in Grab’s digital banking business tripled year-on-year to USD 1.1 billion from USD 362 million in the same period last year.
After that, the number of deposit customers increased and Launch of Boost Pocket Affiliated with GXS Bank.
Boost Pocket is a term deposit product that offers customers higher interest rates on their savings.
Financial Services’ adjusted EBITDA remained negative by USD 26 million in the quarter, but reflected a 27% improvement compared to the same period last year.
The reduction in losses was driven by higher loan revenues, improved profit margins, and lower overhead costs.
Grab continues to focus on its ecosystem-based lending strategy, with sustained growth in lending to partners highlighting progress in this sector.
Featured image credit: Edited from freepic
