'Aggressive Management' KakaoBank, Q1 Net Profit 18.5 Billion KRW... Up 181% YoY
Smooth Progress of Stock Account Opening Application Service and Partner Loan Recommendation Service... Significant Improvement in Net Fee Income
Q1 NIM 1.54%, March-end Delinquency Rate 0.20%, Basel III BIS Ratio 14.29%
[Asia Economy Reporter Kim Hyo-jin] Kakao Bank, which recorded its first profit three years after its launch last year, continued its growth in the first quarter of this year.
Kakao Bank announced on the 6th that its net profit for this quarter (January to March) was 18.5 billion KRW, an increase of 181.3% compared to the same period last year. This figure far exceeds last year's net profit of 13.7 billion KRW.
Kakao Bank, which achieved its first annual profit last year, saw a significant increase in net profit in the first quarter compared to the same period last year, due to an increase in interest income from steady loan asset growth and an improvement in the deficit of the fee sector.
Kakao Bank's net interest income for the first quarter was 84.4 billion KRW, and net fee loss was 3.1 billion KRW. These figures show significant improvement from 54.5 billion KRW and 14.8 billion KRW, respectively, in the same period last year. In particular, the steady growth of partner loan recommendation services and the addition of NH Investment & Securities stock account opening application service in February clearly contributed to the improvement in the fee sector.
The company expects the improvement in the fee sector to continue in the second quarter due to fee income from the issuance of a partner credit card launched on the 27th of last month. Operating profit in the first quarter was 18.4 billion KRW, nearly tripling compared to the same period last year.
As of the end of March, Kakao Bank's total assets stood at 23.4 trillion KRW, up 43.6% from 16.3 trillion KRW in the same period last year. As of the end of March, deposit and loan balances were 21.3 trillion KRW and 16.7 trillion KRW, respectively.
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The net interest margin (NIM) for the first quarter was recorded at 1.54%. As of the end of March, Kakao Bank's delinquency rate was 0.20%, unchanged from the delinquency rate at the end of December last year. The Basel III-based Bank for International Settlements (BIS) ratio was recorded at 14.29%.
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