KakaoBank posted a cumulative net profit for the period through the third quarter of this year of 469.8 billion won, approaching last year's annual net profit. This was thanks to the sustained improvement in its net interest margin (NIM) and the expansion of its customer base. Based on the improved performance, the bank plans to raise its shareholder return ratio to 50% for this year.
KakaoBank said Wednesday that its cumulative net profit for the first three quarters of this year reached 469.8 billion won, a 25.2% increase from the same period last year. This figure represents 97.8% of last year's net profit of 480.3 billion won, which was the highest annual record to date, bringing the bank close to setting a new annual net profit record.
Net profit for the third quarter was 141.7 billion won, up 27.2% from the same period last year. Compared to the previous quarter's 140.8 billion won, it increased by 900 million won (0.6%).
Revenue in both interest and non-interest segments increased. Cumulative interest income for the first three quarters was 1.6409 trillion won, a 10.0% increase, while non-interest income rose 6.4% to 888.3 billion won. In the interest income segment, although credit growth was limited by strengthened management of household loans, personal business loans and rising NIM drove performance.
The third-quarter NIM stood at 2.15%, up 0.02 percentage points (p) from the previous quarter and 0.34%p from the same period last year. It continued its improving trend despite a general decline in NIM across the banking sector.
This is interpreted as being supported by a funding structure where low-cost deposits account for approximately 55%, exceeding the banking industry average of about 40%.
The outstanding loan balance was 48.595 trillion won, an increase of 378 billion won (0.8%) from the previous quarter. The outstanding balance of personal business loans rose by 349 billion won from the previous quarter to 4.036 trillion won, accounting for 58% of the total net increase in loans this year. The deposit balance was recorded at 71.805 trillion won, an increase of 4.695 trillion won (7.0%) from the previous quarter.
The delinquency rate in the third quarter was 0.49%, down 0.02%p from the previous quarter and 0.04%p from the same period last year. The ratio of non-performing loans also decreased by 0.01%p and 0.02%p over the same periods to 0.53%.
In the non-interest income segment, loan comparison and investment/payment services supported growth. Cumulative fee and platform revenue for the first three quarters was 256.3 billion won, a 10.9% increase from the same period last year. Due to factors such as loan comparison services, fund sales, and advertising revenue, non-interest income accounted for 35% of total operating revenue.
The number of customers reached 27.94 million at the end of the third quarter, an increase of approximately 1.7 million over the past year. Monthly Active Users (MAU) also recorded 20.57 million, up by approximately 600,000 from the same period last year.
KakaoBank plans to continue its growth trend through business diversification. In June, it signed a share purchase agreement to acquire 100% of Maston Capital's shares, proceeding with expansion in the non-banking sector. Additionally, it is promoting business expansion in Indonesia, Thailand, and Mongolia.
Based on improved performance, KakaoBank will also expand shareholder returns. The bank plans to raise its shareholder return ratio for fiscal year 2026 profits from last year's 45.6% to 50%.
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