Toss Bank Achieves First Quarterly Profit Two Years After Launch... Q3 Net Income of 8.6 Billion Won

"Continued Efforts to Strengthen Inclusive and Win-Win Finance"

Toss Bank recorded its first quarterly profit two years after its launch. Based on this, Toss Bank announced that it will strengthen inclusive and cooperative finance.

On the 30th, Toss Bank announced that it posted a net profit of 8.6 billion KRW in the third quarter of this year, successfully turning a net loss of 10.5 billion KRW in the previous quarter into a profit. This is the first time Toss Bank has recorded a quarterly profit since its launch in October 2021.

Toss Bank explained, “We achieved a quick and balanced growth in the three major indicators?subscribers, loans, and deposits?leading to a short-term turnaround to profitability,” and added, “We expect to maintain a profit trend going forward unless there are major external variables.”

As of the end of the third quarter this year, Toss Bank’s customer base reached 7.99 million, an increase of about 1.1 million from the previous quarter (6.9 million). During the same period, loan and deposit balances grew by more than 1 trillion KRW each compared to the previous quarter, reaching 11.2 trillion KRW and 22.7 trillion KRW, respectively. The loan-to-deposit ratio rose by more than 5 percentage points from 50.4% in the previous quarter to 55.6%. Toss Bank expects the loan-to-deposit balance to improve further in the fourth quarter of this year, reflecting the performance of the Jeon-Wolse (monthly rent) fund loans launched in September.

With the rise in the loan-to-deposit ratio, the cumulative net interest margin (NIM) for the third quarter of this year was 2.06%, and net interest income reached 391.8 billion KRW.

As of the end of the third quarter, the delinquency rate stood at 1.18%, down 0.38 percentage points from 1.56% in the previous quarter. Toss Bank stated that it plans to continue efforts to strengthen soundness and promote inclusive and cooperative finance, including loans to medium- and low-credit borrowers. The BIS capital adequacy ratio was 10.84% as of the third quarter this year, and it reached 13.03% as of the end of October, after the completion of a paid-in capital increase worth 285 billion KRW.

The cumulative allowance for loan losses for the third quarter was 303.5 billion KRW, and the allowance coverage ratio based on non-performing loans subject to no income recognition was 213.33%.

A Toss Bank official said, “Over the past two years, we have laid the foundation to be a solid first-tier bank while creating an innovative, customer-centered bank,” adding, “Having achieved a short-term turnaround to quarterly profitability based on customer support, we will strive to be a bank that faithfully practices the values of inclusion and coexistence.”

Hong Min-taek, CEO of Toss Bank, held a press conference on the 5th at the Conrad Hotel in Yeouido, Seoul, introducing management achievements and more. Photo by Hyunmin Kim kimhyun81@

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