Toss Bank 2Q 58.9 Billion KRW Loss "4.4 Million Customers... Maintaining Growth Momentum"

[Asia Economy Reporter Bu Aeri] Toss Bank recorded a net loss of 58.9 billion KRW in the second quarter of this year.

Toss Bank announced on the 31st that it recorded a net loss of 124.3 billion KRW in the first half of this year. With a net loss of 58.9 billion KRW in the second quarter, the deficit improved by 6.5 billion KRW compared to the first quarter (65.4 billion KRW net loss).

In particular, the bank explained that the profit before provision in the second quarter was a loss of 16.1 billion KRW, reducing the deficit by 24 billion KRW compared to the first quarter, indicating improved financial stability.

The main factors for the net loss in the first half were loan loss provisions and selling and administrative expenses. Toss Bank’s provision amount in the first half was 67.3 billion KRW, accounting for more than half of the losses. Due to continuous workforce expansion for business growth, selling and administrative expenses amounted to 49.2 billion KRW.

Toss Bank stated that these are unavoidable initial costs, typical rites of passage for a bank in the early growth stage.

The net interest margin (NIM) in the second quarter recorded 0.31%, improving by 0.52 percentage points compared to the first quarter (-0.21%).

As of the end of this month, Toss Bank’s customer base surpassed 4.4 million. Since its launch in October last year, about 400,000 new customers have been added monthly.

As of the end of August, Toss Bank’s total deposit balance was approximately 26.4 trillion KRW, and the loan balance was about 6.4 trillion KRW.

The loan-to-deposit ratio, which was 3.9% at the end of last year, rose to 24.1% as of the end of this month.

As of the end of August, the proportion of low- to medium-credit borrowers among Toss Bank’s total household loans was about 39%.

As of the end of August, the Bank for International Settlements (BIS) total capital ratio was 13.4%, exceeding the standard of 8%.

Since its launch, Toss Bank has secured 1.35 trillion KRW in capital through several paid-in capital increases.

A Toss Bank official said, “As a newly established bank that has not yet reached one year since its launch, despite difficult conditions, we are showing rapid growth thanks to the active support of shareholders and the support of customers. Going forward, we will lead customer-centered innovative finance by providing more innovative products and services to customers and embracing sound low- to medium-credit borrowers.”

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