Net profits of the three internet banks rose by 15% compared to a year ago, though individual bank performances diverged. KakaoBank and Toss Bank recorded their highest-ever half-year results, while K bank saw its net profit shrink as last year's profit growth driven by bond sales disappeared this year.
According to the financial sector on the 31st, the combined cumulative net profit of the three internet banks—KakaoBank, K bank, and Toss Bank—for the first two quarters of this year totaled 447 billion won, representing a 15.1% increase compared to the same period last year.
KakaoBank, which secured first place, reported a second-quarter net profit of 328 billion won, up 24.4% from the same period last year, setting a new all-time high record. This was driven by simultaneous growth in both interest and non-interest income. All Yeosu Shin balances increased, with interest income rising 20.8%, particularly due to loans focused on individual business owners. Non-interest income, specifically fee revenue, surged 92% thanks to increased debit card usage.
The gap between K bank and Toss Bank, competing for second and third place, narrowed significantly. K bank's net profit fell 28.6% year-on-year to 60.1 billion won, while Toss Bank's net profit grew 45.8% to reach 58.9 billion won. Consequently, the difference in net profits between the two companies shrank from 43.8 billion won in the first half of last year to just 1.2 billion won this year.
Market analysts note that as one-time factors supporting K bank's performance have vanished, its core business results are now more visible. The decline in K bank's profit was largely due to a drop in non-interest income. While interest income rose 19.6% year-on-year to 253 billion won, non-interest income plummeted 68.2% compared to the same period last year, reflecting reduced gains from loan bond sales that had previously boosted last year's results.
Meanwhile, Toss Bank succeeded not only in increasing interest income but also in significantly reducing losses in its non-interest segment. Interest income rose 1.5% to 423.3 billion won. Non-interest losses dropped sharply from 27 billion won in the first half of last year to just 3.5 billion won this year, thanks to increased cumulative linked sales of its lump-sum management service and higher debit card transaction volumes.
A financial analyst stated, "Toss Bank's growth in Yeosu Shin assets and core business is better than K bank's," adding, "As Toss Bank was the first to enter individual business owner loans and has resolved solvency concerns, it can be seen as having overcome a significant portion of its losses."
Performance on financial soundness also varied. KakaoBank's delinquency rate stood at 0.51% as of the end of the second quarter, down 0.01 percentage points (pp) year-on-year, while its non-performing loan (NPL) ratio remained stable at 0.54%, similar to last year's level. Toss Bank's delinquency rate fell 0.15 pp year-on-year to 1.05%, and its NPL ratio decreased by 0.07 pp to 0.91%.
In contrast, K bank's delinquency rate rose by 0.01 pp to 0.60%, and its NPL ratio increased by 0.08 pp to 0.59%, indicating a deterioration in financial health.
Regarding inclusive finance, all three banks met their targets. The share of credit loans provided to medium- and low-income individuals and individual business owners during the second quarter exceeded the 30th% target set for the first quarter. On a new transaction volume basis, KakaoBank accounted for 38.4%, Toss Bank for 32.7%, and K bank for 32.4%. Based on outstanding balances, Toss Bank led with 34.2%, followed by KakaoBank at 31.9% and K bank at 31.2%.
However, as the overall lending scale expanded, performance declined compared to the previous quarter across all three banks. On a new transaction volume basis, KakaoBank's share of credit loans for medium- and low-income borrowers dropped by 7.2 pp from the first quarter. Toss Bank saw a 1.8 pp decline, while K bank recorded a 1.2 pp decrease compared to the prior quarter.
in FINANCE
