Deposits top 70 trillion won for first time
Operating revenue up 8.7% year-on-year
Shareholder return ratio target of 50% set for fiscal 2026
Kakao Bank reported cumulative net profit for the period of 469.8 billion won ($350 million) through the third quarter of this year, up 25.2% from the same period last year, the bank announced Wednesday.
The bank's customer base reached 27.94 million at the end of the third quarter, with 1.7 million new customers joining over the past year.
Monthly active users hit a record 20.57 million in the third quarter. The bank attributed the high level of customer activity to improved access to investment and payment services and the introduction of financial lifestyle services tailored to customer needs.
Kakao Bank's customer penetration rate rose across all age groups. Teenagers and younger users, along with middle-aged and older customers, drove the expansion of the customer base. Three out of four new customers — 75% — who signed up over the past year were either minors or aged 50 and above.
Kakao Bank's deposit balance stood at 71.81 trillion won at the end of the third quarter, surpassing the 70 trillion won mark for the first time.
The number of users and the balance of its group savings account product came to 13.3 million and 12.1 trillion won, respectively, continuing a steady upward trend.
The bank's loan balance reached 48.6 trillion won at the end of the third quarter.
Loans to sole proprietors accounted for more than half — 58% — of the net increase in Kakao Bank's total loan balance this year. The sole-proprietor loan balance grew by 349 billion won quarter-on-quarter to 4.04 trillion won at the end of the third quarter.
This month, Kakao Bank plans to launch a loan-refinancing product that allows customers holding sole-proprietor loans at other financial institutions to switch to Kakao Bank's real estate-backed loans.
Next year, the bank will launch a co-lending product with Busan Bank as it expands into corporate banking. The plan is to improve financing access for regional businesses and strengthen productive lending.
Kakao Bank also intends to roll out differentiated corporate banking services for small and medium-sized corporations — covering deposits, loans and payment settlement — on a phased basis.
Kakao Bank extended about 510 billion won in mid- to low-credit loans in the third quarter alone, bringing the cumulative total through the first three quarters of this year to around 1.5 trillion won.
Asset quality improved alongside the bank's inclusive finance efforts. The delinquency rate and the substandard-and-below loan ratio fell to 0.49% and 0.53%, respectively, down 0.02 percentage points and 0.01 percentage points quarter-on-quarter.
Kakao Bank's cumulative operating revenue through the third quarter rose 8.7% year-on-year to 2.53 trillion won. Non-interest income came to 888.3 billion won, up 6.4% from the same period last year, accounting for 35 percent of total operating revenue.
Cumulative fee and platform revenue through the third quarter grew 10.9% year-on-year to 256.3 billion won.
The cost-to-income ratio improved from 36.9% at the end of last year to 35.8% on a cumulative third-quarter basis, while return on equity rose to 9.40%.
Kakao Bank plans to raise its shareholder return ratio for fiscal year 2026 earnings to 50%, pursuing sustainable growth alongside enhanced shareholder value.
"Even amid an uncertain external environment, we continue to achieve balanced growth across all business areas, backed by our customer base and platform capabilities," a Kakao Bank official said. "Going forward, we will expand inclusive finance on the foundation of stable growth, and through the integration of AI technology and global expansion, we aim to become the comprehensive financial platform that customers choose first."
hyuk@heraldcorp.com
