K Bank Reports 14.7 Billion KRW Net Profit in 2Q... 9 Consecutive Quarters of Profitability

K Bank announced on the 14th that its net profit for the second quarter reached 14.7 billion KRW, marking a 41.4% increase compared to the previous quarter. However, due to provisions and other factors, this represents approximately a 31% decrease compared to the same period last year (21.3 billion KRW).

According to K Bank, it has maintained profitability for nine consecutive quarters since the second quarter of 2021. As of the end of the second quarter, deposit balances stood at 17.37 trillion KRW, and loan balances at 12.67 trillion KRW, reflecting increases of 4.4% and 6.1% respectively compared to the previous quarter. Compared to the previous year, these figures surged by 42.6% and 45.2% respectively. The number of customers reached 8.9 million in the second quarter, up by 190,000 from the previous quarter and 1.07 million year-on-year.

K Bank's loan growth was driven by apartment mortgage loans. In the second quarter, it newly handled 900 billion KRW in apartment mortgage loans. As of the first half of the year, 47.1% of customers who received apartment mortgage loans from K Bank obtained loans at interest rates in the 3% range. The proportion of housing-related loans at K Bank increased from 21.3% at the end of last year to 29.1% as of the second quarter.

K Bank's interest income in the second quarter recorded 106.8 billion KRW, a 19.9% increase compared to the second quarter of last year. During the same period, K Bank's non-interest income rose to 7.4 billion KRW, more than tripling year-on-year. This growth in non-interest income was driven by the addition of partner securities firms for account opening (KB Securities, Korea Investment & Securities), expanded sales of insurance products such as check cards and travel insurance, and increased operating income.

In the second quarter, K Bank proactively set aside provisions totaling 60.3 billion KRW, the largest amount in a single quarter, for risk management. The delinquency rate in the second quarter was 0.86%. The BIS ratio stood at 13.54%, maintaining the previous quarter's level despite loan growth. The net interest margin (NIM) was 2.26%. The proportion of mid-to-low credit loans within K Bank's credit loans in the second quarter slightly increased to 24.0% compared to the previous quarter.

Additionally, in the second half of the year, K Bank plans to expand its loan portfolio by launching auto loans in the lending sector and to enhance its market influence in the deposit sector by introducing various new products such as group accounts.

Seo Hoseong, CEO of K Bank, stated, "In the second quarter, we focused on diversifying our revenue structure through stable growth in mortgage loans. In the second half, we will actively practice inclusive finance by expanding mid-to-low credit loans and become a bank that grows together with customers by launching various lifestyle-oriented products and services such as auto loans and group accounts."

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