KakaoBank posts record Q1 net profit of 187.3 billion won on stronger noninterest income

KakaoBank said in a regulatory filing on Tuesday that it posted a record first-quarter net profit of 187.3 billion won ($187.3 billion won), up 36.3% from a year earlier. Operating revenue rose 4.4% to 819.3 billion won.

The results were driven by growth in noninterest income. Noninterest income increased 7.5% from a year earlier to 302.9 billion won, topping 300 billion won for the first time and accounting for 37% of operating revenue. Fee and platform income rose 4.1% to 80.8 billion won.

Interest income climbed 2.7% to 515.6 billion won. Net interest margin was 2.00%, down 0.09 percentage point from a year earlier.

Loans outstanding totaled 47.699 trillion won. Loans to mid- and low-credit borrowers accounted for 32.3% of the total, down about 0.5 percentage point from a year earlier but above the regulator’s 30% target. Loans to individual business owners stood at 3.403 trillion won, up 348 billion won from the previous quarter.

Asset quality remained stable. The delinquency rate rose 0.01 percentage point from a year earlier to 0.51%. The ratio of substandard or below loans was 0.53%, and the credit loss ratio was 0.55%, both unchanged from the previous quarter.

Deposits totaled 69.356 trillion won, increasing by more than 1 trillion won over three months. Regular savings deposits fell amid a strong domestic stock market, but demand deposits and time deposits grew. Balances in group accounts rose by about 1 trillion won, supporting growth in demand deposits.

KakaoBank’s customer base also expanded. Total customers reached 27.27 million at the end of the first quarter, up 570,000 over three months. Monthly active users hit a record 20.32 million.

The bank said nonoperating gains included a 93.3 billion won valuation gain tied to its investment in Indonesia’s digital bank Superbank, supporting the rise in net profit.

A KakaoBank official said the bank achieved balanced growth by focusing on loan expansion centered on individual business and policy loans, while diversifying through fee and platform businesses and treasury operations. The official said the bank will strengthen a sustainable growth structure based on its platform and global businesses.