GoTyme Bank eyes profitability by 2027

GoTyme Bank aims to turn profitable by mid-2027, driven by continued customer growth and ahead of potential entrants in the Philippine digital banking market, President and Chief Executive Officer Nathaniel C. Clarke said.

“We’re still prioritizing growth over profitability, but we still think we’ll become profitable in 2027 ,” he told reporters. “Any new entrants don’t really change our strategy,” Clarke told reporters last week. “Our focus is to maintain momentum and stay ahead as the fastest-growing bank.”

The Bangko Sentral ng Pilipinas (BSP) lifted a three-year moratorium on digital bank licensing in January, allowing up to four new players or traditional banks converting to digital operations. Six digital banks operate in the Philippines, including GoTyme, Maya Bank, Inc., Overseas Filipino Bank, Inc., Tonik Digital Bank, Inc., UnionDigital Bank, Inc. and UNObank, Inc.

Mr. Clarke said GoTyme’s operations are largely insulated from interest rate fluctuations, noting that its loan book is short-term with minimal term deposits. “Unlike traditional banks with longer-dated loans, fluctuations in interest rates don’t really impact us,” he said.

Customer growth remains a key driver of profitability. GoTyme’s customer base reached nine million last week, on track to hit 11–12 million by year-end. “We expect to reach 10 million by mid-year, and close to 12 million if all goes well,” Mr. Clarke said.

Bad loans are projected to stay at 5% to 7% for 2026, following a 5.6% level at the end of 2025. Operational efficiency is also improving, with gross profits more than doubling last year, while operating expenses grew less than 15%.

The bank posted a net loss of P3.44 billion in 2024, up from P2.47 billion in 2023, mainly due to higher operating costs during its early expansion phase. Mr. Clarke said the bank’s financial trajectory points toward breaking even once the customer base reaches scale.

GoTyme Bank began operations in October 2022 as a joint venture between the Philippines’ Gokongwei group and Singapore-based Tyme Group. — Aaron Michael C. Sy