Kakaobank (KRX: 323410), South Korea's digital bank, reported a significant increase in operating revenue and profit in the first quarter of 2023.
The bank's revenue reached KRW 560.5 billion ($476.4 million), driven by a growing customer base and firm performance in low- and medium-interest loans.
This represents an increase of 65.6% over the previous year and 15.6% from a quarter earlier.
Operating income was KRW 136.4 billion ($116 million), up 54.3% from the first quarter of 2012 and up 59% sequentially.
By the end of March, Kakaobank's customer base had grown to 21.18 million, up 14% year-on-year.
As a result, the bank achieved a penetration rate of 73% of the economically active population.
In the first quarter of 2022, the balance of community accounts reached KRW 5.5 trillion ($4.67 billion), up from KRW 4.8 trillion a year earlier.
In Q1 2023, Kakaobank's incoming balance exceeded KRW 40 trillion for the first time, while its outgoing balance reached KRW 29.3 trillion.
The bank's mortgage loan balance reached KRW 2.4 trillion within a year of its launch, with new business volume reaching KRW 1.43 trillion in Q1.
Kakaobank also focuses on ESG activities, preparing for ISO 14001 certification and conducting employee participation campaigns to reduce its environmental impact.
In Q4, Kakaobank plans to expand its unique housing loan program and continue its growth trend.
The bank's advertising business is also thriving, with advertising's share of platform revenue increasing from 3% in 2022 to 13% in Q1 2023.
