KakaoBank Q2 Profit Surges 51.9% on Customer Growth, Stability

Seoul, South Korea—KakaoBank (323410. KS) posted a 51.9% increase in second-quarter operating profit year over year, driven by steady customer base expansion and stable risk management.

The bank reported operating profit of KRW 169.8 billion (US$123.2 million) for the quarter ended June 30, up from KRW 111.8 billion a year earlier.

Net profit rose 46.6% to KRW 120.2 billion (US$87.2 million) while operating revenue grew 19.7% to KRW 734.1 billion (US$532.6 million).

KakaoBank's customer base expanded to 24.03 million users, up 10.5% year-on-year. The bank saw increased penetration across all age groups, particularly among users in their 40s and above.

The bank's loan balance increased 25.7% year-on-year to KRW 42.6 trillion (US$30.9 billion), with growth across all loan products.

Despite the growth, KakaoBank maintained a stable delinquency rate of 0.48%, up one basis point quarter-on-quarter.

KakaoBank's cost-to-income ratio improved to 35.4% in the first half of 2024, down from 37.3% in 2023, indicating increasing operational efficiency.

The bank's return on equity (ROE) for the first half of 2024 reached 7.48%, up from 5.97% in 2023, showcasing improved profitability.

The bank is also making strides in expanding its product offerings and geographical reach.

Launching an integrated subsidized loan inquiry service for business owners signals a push into the lucrative small business banking sector.

KakaoBank's Indonesian joint venture, Superbank, achieved 800,000 customers within one month of its June launch.

* US$1 = KRW 1,378.26

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