Kakao Bank achieved record earnings in the first half of the year, driven by an increase in personal business loans and growth in its platform services.
On August 5, Kakao Bank announced that its net profit for the second quarter reached 140.8 billion won, an 11.5% increase compared to the same period last year. For the first half, net profit totaled 328 billion won, marking a 24.4% rise from the previous year, the highest for any first half to date.
Interest income for the first half rose 5.5% year-on-year to 1.6483 trillion won, bolstered by the expansion of personal business loans. By the end of the second quarter, the outstanding balance of personal business loans was 3.687 trillion won, an 8.3% increase from the previous quarter. Personal business loans accounted for 48% of the total increase in loans during the first half.
Non-interest income also grew, driven by the expansion of platform services such as loan comparisons, investments, and payment processing. Non-interest income for the first half was reported at 589.5 billion won, a 4.8% increase from the previous year, representing 36% of total operating revenue.
Commission and platform revenue increased by 10.5% to 169.6 billion won. The amount of loans executed through partner financial institutions via loan comparison services reached 1.56 trillion won, a 12% increase from the same period last year. The volume of check card payments also hit a record high of 6.3 trillion won for the quarter, contributing to the rise in commission income.
In the second quarter, 520 billion won in new loans were provided to low- and mid-credit borrowers, with a total of 1 trillion won supplied in the first half. The delinquency rate for the second quarter was 0.51%, and the non-performing loan (NPL) ratio was 0.54%, remaining stable compared to the previous quarter.
Kakao Bank plans to accelerate its business diversification in the second half of the year. This month, it will launch a 'Payment Home' service to integrate card payment details and benefits, along with the introduction of its second private label credit card (PLCC). In September, it will expand its loan comparison service to the auto finance sector, allowing customers to compare various auto financing products at once.
In the fourth quarter, Kakao Bank will introduce a refinancing service that allows personal business owners to switch their real estate-backed loans from other financial institutions. A company representative stated, "We aim to expand inclusive finance and introduce innovative services based on stable growth in the second half, positioning ourselves as the preferred financial platform for customers."
On August 5, Kakao Bank announced that its net profit for the second quarter reached 140.8 billion won, an 11.5% increase compared to the same period last year. For the first half, net profit totaled 328 billion won, marking a 24.4% rise from the previous year, the highest for any first half to date.
Interest income for the first half rose 5.5% year-on-year to 1.6483 trillion won, bolstered by the expansion of personal business loans. By the end of the second quarter, the outstanding balance of personal business loans was 3.687 trillion won, an 8.3% increase from the previous quarter. Personal business loans accounted for 48% of the total increase in loans during the first half.
Non-interest income also grew, driven by the expansion of platform services such as loan comparisons, investments, and payment processing. Non-interest income for the first half was reported at 589.5 billion won, a 4.8% increase from the previous year, representing 36% of total operating revenue.
Commission and platform revenue increased by 10.5% to 169.6 billion won. The amount of loans executed through partner financial institutions via loan comparison services reached 1.56 trillion won, a 12% increase from the same period last year. The volume of check card payments also hit a record high of 6.3 trillion won for the quarter, contributing to the rise in commission income.
In the second quarter, 520 billion won in new loans were provided to low- and mid-credit borrowers, with a total of 1 trillion won supplied in the first half. The delinquency rate for the second quarter was 0.51%, and the non-performing loan (NPL) ratio was 0.54%, remaining stable compared to the previous quarter.
Kakao Bank plans to accelerate its business diversification in the second half of the year. This month, it will launch a 'Payment Home' service to integrate card payment details and benefits, along with the introduction of its second private label credit card (PLCC). In September, it will expand its loan comparison service to the auto finance sector, allowing customers to compare various auto financing products at once.
In the fourth quarter, Kakao Bank will introduce a refinancing service that allows personal business owners to switch their real estate-backed loans from other financial institutions. A company representative stated, "We aim to expand inclusive finance and introduce innovative services based on stable growth in the second half, positioning ourselves as the preferred financial platform for customers."
* This article has been translated by AI.
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