KakaoBank Q2 Profit Up 0.2%, H1 Rises 11%

Seoul, South Korea — KakaoBank Corp reported a second-quarter operating profit of KRW 170.1 billion, a 0.2 percent increase from the same period last year, according to the South Korean digital bank.

First-half operating profit increased 11 percent to KRW 353.2 billion, compared with KRW 318.2 billion in the prior-year period. Second-quarter net profit rose 5.0 percent to KRW 126.3 billion.

Operating revenue for the second quarter was KRW 778.0 billion, a 6.0 percent increase year-on-year.

The bank reported 25.86 million customers at the end of the first half, an increase of 980,000 from the end of 2024. Deposit balances stood at KRW 63.7 trillion, a 19 percent increase from the same period a year earlier.

Total assets were KRW 71.9 trillion as of June 30, compared with KRW 61.0 trillion a year earlier. The loan portfolio was KRW 44.8 trillion in the second quarter.

Platform revenue, comprising loan comparison and advertising services, totaled KRW 48.0 billion in the first half, compared with KRW 42.5 billion in the same period of 2024.

The bank's delinquency rate was unchanged at 0.52 percent in the second quarter, compared with the previous quarter. The loan loss allowance coverage ratio was 219 percent.

Return on equity was 8.09 percent for the first half, compared with 5.97 percent in 2023. Return on assets was 0.78 percent, compared with 0.72 percent in the previous year.

The cost-to-income ratio was 35.2 percent in the first half, compared with 37.3 percent in 2023.

Monthly active users totaled 19.88 million in the second quarter, while weekly active users totaled 14.54 million.

The bank's loan comparison platform processed KRW 1.387 trillion in execution amounts during the second quarter.

KakaoBank was selected in June as part of a consortium for a virtual banking license in Thailand. 

The bank operates in Indonesia through a partnership with PT Bank Jago Tbk.

The company launched artificial intelligence search tools, a financial calculator, a customer service chatbot, and a mobile identification service during the quarter.

KakaoBank operates without physical branches.