KakaoBank Posts Record High Net Profit of 328 Billion Won in H1... Both Interest and Non-Interest Income Grow

Loan Interest Income Up 5.9% and Non-Interest Income Up 4.8%

About 1 Trillion Won in Loans to Mid- and Low-Credit Borrowers in H1

Customer Base Reaches 27.63 Million, MAU at 20.32 Million

Expanding Portfolio into the Non-Banking Loan

KakaoBank's net profit in the first half of this year surpassed 300 billion won, marking the highest level for a half-year period in its history. This achievement was driven by efforts to diversify revenue sources through the expansion of its loan portfolio, centered on loans to individual entrepreneurs, as well as by strengthening its platform businesses such as loan comparison, payment and settlement, and investment services.

On August 5, KakaoBank announced in a regulatory filing that its net profit for the first half of this year reached 328 billion won, a 24.4% increase from 263.7 billion won in the same period a year earlier. Net profit for the second quarter of this year was tallied at 140.8 billion won, up 11.5% from 126.3 billion won in the second quarter of last year.

KakaoBank's revenue for the first half of the year grew by 5.5% year-on-year to 1.6483 trillion won. Interest income from loans rose 5.9% from 999.9 billion won in the first half of last year to 1.0588 trillion won, while non-interest income increased 4.8% to 589.5 billion won, reflecting balanced growth. Non-interest income accounted for 36% of total revenue.

Fee and platform revenue in the first half of the year was recorded at 169.6 billion won, a 10.5% year-on-year increase. The amount of loans executed by partner financial institutions through the ‘Loan Comparison’ service in the second quarter was 1.56 trillion won, up 12% from the same period last year.

As the use of investment services through the ‘Investment’ tab increased, the combined sales balance of MMF Box and funds reached 1.8 trillion won at the end of the second quarter. Notably, the total amount of payments made with check cards during the quarter reached a record high of 6.3 trillion won, driving growth in fee revenue.

Additionally, as market interest rates rose, bond interest income expanded, contributing to a second-quarter net profit from fund operations of 169.8 billion won and further boosting non-interest income.

KakaoBank's deposit balance at the end of the second quarter stood at 67.11 trillion won. Although this represents a decrease of 2.246 trillion won from the previous quarter, attributed to the ‘money move’ phenomenon amid vibrant stock market activity, more than 1 trillion won in deposits flowed in during July alone, resulting in a net increase in outstanding deposits compared to the end of June.

The balance of group accounts at the end of the second quarter was 11.7 trillion won, an increase of about 100 billion won from the previous quarter, with total users exceeding 13 million.

KakaoBank's outstanding loans at the end of the second quarter increased by 518 billion won from the previous quarter to reach 48.217 trillion won. While total household loan growth in the second quarter was only 234 billion won, the bank explained that inclusive finance targeting mid- and low-credit borrowers, as well as self-employed individuals, continued to expand.

The amount of loans to mid- and low-credit borrowers handled in the second quarter reached 520 billion won, totaling about 1 trillion won supplied in the first half alone. The loan balance for individual entrepreneurs also increased 284 billion won compared to the previous quarter, reaching 3.687 trillion won. Of the net increase in total loan balances in the first half, loans to individual entrepreneurs accounted for 48%.

KakaoBank plans to launch a refinancing service in the fourth quarter of this year, allowing individual entrepreneurs to switch their real estate-secured loans to products with lower rates. Next year, the bank will introduce joint loan products in partnership with Busan Bank to expand into the corporate loan segment.

While maintaining its ratio of loans to mid- and low-credit borrowers at over 30%, KakaoBank's delinquency rate and ratio of substandard and below loans in the second quarter were 0.51% and 0.54%, respectively—remaining similar to the previous quarter and reflecting continued stability.

The customer base also expanded. As of the end of the second quarter, KakaoBank had 27.63 million customers, with about 1 million new customers joining in the first half alone. The number of monthly active users (MAU) stood at 20.32 million, and weekly active users (WAU) at 15.04 million, both remaining in line with the previous quarter.

KakaoBank explained that the increased accessibility of investment services via the ‘Investment’ tab and the enhanced conversational AI services contributed to growth in its customer base.

KakaoBank plans to further diversify and strengthen its fee and platform businesses in the second half of the year. This month, it will launch the ‘Payment Home’ service, which allows integrated management of card payments and benefits, as well as its second Private Label Credit Card (PLCC). Next month, the loan comparison service will be expanded into auto finance.

In October, KakaoBank will introduce a new check card allowing customers to directly select and change benefits according to their needs. At the end of the year, a travel-specialized check card linked to its foreign currency deposit account will also be launched.

KakaoBank is also preparing to provide KakaoPay Securities’ stock-related services on its app’s ‘Investment’ tab in a Web Trading System (WTS) format.

Notably, in June, the bank signed a share purchase agreement to acquire 100% ownership of Mastern Capital. After completing the acquisition, KakaoBank aims to expand its business portfolio into non-banking loans.

In line with its 'Growth-Oriented Value-Up Strategy' announced in 2024, KakaoBank reiterated its goals of reaching 100 trillion won in assets by 2027 and achieving a return on equity (ROE) of 15% by 2030.

A KakaoBank representative said, "Even amid an external environment marked by high uncertainty and volatility, we achieved balanced growth across all segments on the back of our expanding customer base and platform competitiveness. In the second half of the year, we will continue stable growth, broaden inclusive finance, and roll out innovative services so that we become the financial platform of first choice for customers."

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