Southeast Asia's digital banks are under the microscope as leading internet companies Sea Limited, Grab Holdings, and GoTo Group release detailed loan book data. The disclosures, highlighted in a recent analysis by The Diplomat, provide investors with concrete metrics to evaluate whether these challengers can truly compete with established financial institutions.
Sea's digital finance arm, Monee, reported a consumer and small-business loan portfolio of $11.1 billion as of June 30, marking a 62.5% year-over-year increase. This makes Sea the largest among the three in terms of disclosed loan volume. Grab's gross loans surged to $2.32 billion, nearly tripling from the prior year, while GoTo's fintech loan principal climbed 58% to 11.03 trillion Indonesian rupiah (approximately $700 million).
Divergent Profitability Paths
The three companies are at different stages of profitability. Sea's Monee segment generated $1.4 billion in revenue during the quarter, up 58.9% year-over-year, with adjusted EBITDA of $288 million, a 12.8% increase. The 90-day non-performing loan (NPL) ratio remained stable at 1.0% for the second consecutive quarter. However, the slower EBITDA growth compared to revenue suggests that expanding credit still carries significant funding, collection, and operational costs.
Grab's financial services segment posted revenue of $134 million, up 59%, but still recorded a $15 million adjusted EBITDA loss. The company's group profit of $235 million included a $307 million gain from consolidating Superbank, which also brought acquired loans and a $15 million day-one expected credit loss. This accounting benefit obscures the fact that the banking segment has yet to reach break-even.
GoTo, meanwhile, reported positive fintech economics with revenue up 53% and adjusted EBITDA up 447%. Management raised its 2026 fintech adjusted EBITDA guidance to between Rp1.7 trillion and Rp1.8 trillion. However, the company did not disclose a specific delinquency percentage, only stating that ratios were stable, making direct comparisons with Sea less precise.
Distribution vs. Credit Risk
The digital banks aim to leverage their parent companies' ecosystems—Sea's Shopee e-commerce, Grab's ride-hailing and delivery, and GoTo's Gojek and GoPay services—to reduce customer acquisition costs and improve underwriting. Grab noted that about 60% of Superbank customers had a Grab or OVO account, and Superbank has surpassed six million customers. Sea's integration with Shopee provides a similar funnel, while GoTo pairs its services with Bank Jago.
However, rapid loan growth within these ecosystems does not eliminate credit risk. Economic shocks, such as unemployment or fuel price spikes, could lead to higher default rates. Traditional banks still hold advantages in low-cost deposits and established infrastructure, and they can replicate digital onboarding without the overhead of a separate tech platform.
Key Metrics to Watch
Investors should focus on three disclosures in upcoming reports: Sea's 90-day NPL ratio, Grab's loan growth excluding Superbank consolidation, and a numerical delinquency measure from GoTo. If these remain controlled while segment profits rise, the case for digital banks strengthens. Conversely, if provisions grow faster than revenue, the apparent advantages may prove costly.
As of Tuesday's market close, Sea shares were up 2.3% at $108.68, while Grab shares slipped 1% to $3.02. These movements reflect broader market conditions rather than direct reactions to The Diplomat report, but they underscore the market's attention on these emerging financial players.
