Toss Bank Q1 Net Profit 14.8 Billion KRW... Third Consecutive Quarter of Profitability

Toss Bank announced on the 31st that it recorded a net profit of 14.8 billion KRW in the first quarter of this year. It turned profitable from a net loss of 28 billion KRW in the same period last year. The profit nearly doubled compared to the first quarterly profit of 8.6 billion KRW achieved in the third quarter of last year. With three consecutive quarters of profit, the possibility of achieving an annual profit this year has increased.

The number of customers in the first quarter of this year was 9.86 million, about 1.6 times higher than 6.07 million in the same period last year. It increased by about 1 million compared to 8.88 million at the end of last year, reaching 10 million customers in April this year.

As of the first quarter, loan balances stood at 13.85 trillion KRW, and deposit balances at 28.32 trillion KRW. These figures represent increases of 1.5 times and 1.3 times, respectively, compared to 9.3 trillion KRW and 22 trillion KRW in the same period last year. Toss Bank explained that the loan-to-deposit ratio improved to 56.42%, up about 12 percentage points from 44.53% in the same period last year, indicating a better balance between loans and deposits.

Due to the improvement in the loan-to-deposit ratio, net interest income in the first quarter rose to 175.9 billion KRW, about 1.6 times higher than 112 billion KRW in the same period last year. The net interest margin (NIM) reached 2.49%, an increase of 0.73 percentage points from 1.76% in the same period last year. The cost-to-income ratio (CIR) also improved significantly to 28.06% from 44.66% in the previous quarter, marking the lowest level in the banking sector.

Asset quality also improved. The capital adequacy ratio (BIS) rose by 2.11 percentage points from 12.76% in the previous quarter to 14.87%. Toss Bank analyzed that the continuous growth of low-risk weighted rental deposit loans and the elimination of factors reducing capital due to the turnaround to profitability have created sustainable growth potential. The delinquency rate slightly increased by 0.02 percentage points to 1.34% from 1.32% in the previous quarter. The ratio of non-performing loans was 1.19%, and the loan loss provision coverage ratio was 206.35%.

A Toss Bank official stated, “Toss Bank has achieved profits for three consecutive quarters and is expected to have entered a stable growth phase. We plan to build solid soundness indicators such as capital adequacy ratio and continue financial inclusion for low- and medium-credit borrowers to achieve ‘sustainable growth.’”

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