Kabang, First Earnings Disclosure After Listing... Operating Profit 133.8 Billion KRW, Net Profit 115.9 Billion KRW

Up 199.7% and 156.2% Year-on-Year
16.71 Million Customers... Increase in New Customers Aged 40 and Above

[Asia Economy Reporter Kiho Sung] KakaoBank announced its first earnings report since its initial public offering (IPO), recording an operating profit of 133.8 billion KRW and a net profit of 115.9 billion KRW in the first half of this year. These figures represent increases of 199.7% and 156.2% respectively compared to the previous year.

In its earnings announcement on the 17th, KakaoBank stated that as of the end of Q2 this year, the number of customers increased by 1.27 million from the end of last year to 16.71 million. Deposits rose by 3.0866 trillion KRW from the end of last year to 26.6259 trillion KRW, and loan balances increased by 2.8132 trillion KRW to 23.1265 trillion KRW compared to the end of last year.

The increase in new customers was primarily driven by those aged 40 and above, including middle-aged and senior groups. Since launching customer services in July 2017, the cumulative customer ratio by age group has been 54% for those in their 20s and 30s. However, among new customers in the first half of this year, 48% were aged 40-50, and 10% were 60 or older. Overall, the total customer base accounted for 59% of the economically active population.

The monthly mobile application (app) users increased from 13.1 million at the end of last year to 14.03 million by the end of June this year (based on Nielsen Media digital data). In the platform segment, stock account opening applications and linked loans with secondary financial institutions grew by approximately 43% and 51% respectively compared to the cumulative figures at the end of last year. During the first half of the year, 1,293,060 stock accounts were opened through KakaoBank, and the cumulative amount of linked loans executed increased by over 1 trillion KRW from the end of last year to 3.1245 trillion KRW. The issuance of affiliated credit cards reached a cumulative total of 250,000 cards. Advertising business also commenced in July.

The banking sector continued its steady growth. Deposit balances increased by 3.0866 trillion KRW from the end of last year to 26.6259 trillion KRW, with low-cost deposits accounting for 56.2%.

Loans were driven by growth in jeonse (key money) deposit loans and loans to middle- and low-credit customers. As of the end of the first half, loan balances stood at 23.1265 trillion KRW, an increase of 2.8132 trillion KRW compared to the end of last year. Notably, jeonse deposit loans increased by 2.2383 trillion KRW over six months from January this year, supported by the rise in youth jeonse loans.

Foreign remittances maintained steady growth, while check card payment volumes increased due to promotions aligned with the rise in non-face-to-face and digital payments. KakaoBank mini, a financial service targeting teenagers, has grown to 850,000 users.

Operating revenue for the first half of this year was 478.5 billion KRW. Operating profit, excluding operating expenses, was 133.8 billion KRW. Net profit for the first half was 115.9 billion KRW. Total assets at the end of the first half amounted to 29.9013 trillion KRW.

The net interest margin (NIM) was 1.89%, and the delinquency rate was 0.20%. The Bank for International Settlements (BIS) total capital ratio stood at 19.89%.

In the second half of this year, KakaoBank plans to strengthen its financial platform business capabilities based on its 17 million customers and the number one monthly active users (MAU) of its mobile app. In the loan sector, it aims to expand the supply of mid-interest rate loans.

A KakaoBank official stated, “Through the IPO, we have secured a capital base to leap forward as the number one retail bank and number one financial platform.” They added, “We will do our best to expand financial services for middle- and low-credit customers and to make KakaoBank more convenient and useful for customers of all age groups.”

This content was produced with the assistance of AI translation services.