Results for internet banks in the second quarter of 2026 varied significantly. KakaoBank achieved its highest-ever half-year net profit, while K-Bank faced a substantial decline due to falling non-interest income.
KakaoBank announced on August 5 that its net profit for the second quarter reached 140.8 billion won, an 11.5% increase compared to the same period last year. The bank's half-year net profit totaled 328 billion won, marking a record high.
Other banks, including iM Bank, which transitioned to a commercial bank with 245.7 billion won, as well as Busan Bank (202.1 billion won), Gyeongnam Bank (155 billion won), and Jeonbuk Bank (94.5 billion won), also reported higher half-year net profits.
Growth in non-interest sectors, such as card and platform services, contributed to KakaoBank's strong performance. The revenue from fees and platform services increased by 10.5% year-on-year, driven by a rise in check card payments and the use of loan comparison services. Non-interest income also grew by 4.8% to 589.5 billion won.
Interest income rose by 5.5%, supported by growth in personal business loans. By the end of the second quarter, the outstanding balance of mortgage loans and credit loans increased by 13% and 9.1%, respectively, compared to the previous year.
In contrast, K-Bank's net profit for the second quarter plummeted by 60.6% year-on-year, with a 28.7% decrease in half-year net profit.
The significant drop in non-interest income, down 68%, was largely attributed to the base effect from bond sale profits recorded last year. Revenue from fees related to card and linked loans only increased by 1.5%, while income from securities fell by 4.1%.
Although personal business loans doubled compared to the previous year, driving a 20% increase in interest income, this was not enough to offset the decline in non-interest income.
Toss Bank, which is set to announce its results at the end of this month, is also expected to maintain a profitable trend. The bank likely saw an increase in fee income following the launch of its overseas remittance service earlier this year.
Looking ahead, competition among internet banks for revenue sources is expected to intensify in the second half of the year. With household loan growth limited and the burden of managing credit risk for mid- to low-credit borrowers increasing, unlimited growth in these areas is not feasible. The recent allowance for face-to-face assessments for corporate loans is likely to spark competition to secure high-quality corporate and personal business clients.
KakaoBank's performance in the second half and the success of its new business initiatives will be key factors in determining whether CEO Yoon Ho-young will be reappointed when his term ends in March 2027. The bank plans to launch its second commercial credit card this month and introduce a car loan comparison service in September. In the fourth quarter, it also intends to roll out a refinancing service for real estate-backed loans for personal businesses.
K-Bank is expanding the collateral targets for its 'Business Owner Real Estate Secured Loans' to include multi-family homes, officetels, and commercial properties, while also providing support for facility funds. Toss Bank plans to launch a fund service within the year to enter the asset management sector.
* This article has been translated by AI.
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