Kakaobank's H1 2023 Financial Snapshot

Philip Lee -

Why it matters:

Kakaobank's H1 2023 results provide a detailed snapshot of the fintech sector's performance, underscoring the ongoing evolution of global finance and technology integration.

The Key Points

1. Financial Overview:

  • Operating Profit: Kakaobank reported an operating profit of KRW 248.2 billion (US$191.6 million), an increase of 52% from the first half of the previous year. This was accompanied by a net profit of KRW 183.8 billion (US$141.8 million), an increase of 48.5% yearly.
  • Interest income: For the second quarter, interest income was KRW 494.6 billion (US$381.7 million), an increase of 68.9% over the same period last year. Non-interest income was KRW 118.7 billion (US$91.6 million), an increase of 52.4%.

2. Customer metrics and loan portfolio.

  • Monthly Active Users (MAUs): Q2 figures showed 17.35 million MAUs, an increase from 16.35 million in Q1, indicating consistent user engagement.
  • Total Customers: The platform grew from 21.18 million in Q1 to 21.74 million customers at the end of Q2.
  • Loan balances: Kakaobank's loan to low and middle-income customers increased 32.5% to KRW 3,918 trillion (US$ 3.02 billion) in Q2 from KRW 2,958 trillion (US$ 2.28 billion) a year earlier.
  • Residential mortgage loans: These loans reached KRW 5.5 trillion (US$ 4.24 billion) at the end of the second quarter, up from KRW 2.4 trillion (US$ 1.85 billion) in the previous quarter.

3. Demographics and Market Penetration

  • Kakaobank has seen notable growth in the 40+ demographic. In one year, the penetration rates for those in their 40s, 50s, and 60+ increased from 55% to 64%, 30% to 40%, and 7% to 10%, respectively.

The Big Picture:

Kakaobank's 1H2023 data reflects steady growth, particularly in customer engagement and loan distribution.

The fintech company emphasizes its outreach to older demographic segments, highlighting significant growth rates in the 40+ age category.

Kakaobank's strategies for the coming quarters signal an expansion of its product and service offerings, with inclusive banking at the core of its vision.