South Korea’s internet banks post ₩447 billion first-half profit, up 15.1%

  • Three internet-only banks recorded combined first-half net profit of ₩447 billion.
  • 15.1% year-on-year growth lifted the banks’ combined first-half earnings.
  • KakaoBank and Toss Bank set records, while K Bank’s profit declined.

South Korea’s three internet-only banks generated combined net profit of ₩447 billion (approximately $327.0 million) in the first half of this year, a 15.1% increase from a year earlier. KakaoBank led the group with ₩328 billion in profit, up 24.4%, while Toss Bank posted a record ₩58.9 billion, up 45.8%. K Bank was the only decliner, with profit falling 28.6% to ₩60.1 billion as gains from loan receivable sales that had supported last year’s results diminished. The main dividing line was non-interest income: KakaoBank expanded platform and fee revenue, while Toss Bank sharply reduced losses in the segment. K Bank’s non-interest income plunged 68.2%, more than offsetting a 19.6% rise in interest income. The profit gap between K Bank and Toss Bank narrowed from ₩43.8 billion last year to ₩1.2 billion. Asset-quality indicators improved at KakaoBank and Toss Bank but deteriorated at K Bank. All three banks exceeded the 30% target for new credit loans to mid-to-low credit borrowers in the second quarter, although their shares declined from the previous quarter as total lending grew.

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South Korea’s internet banks post ₩447 billion first-half profit, up 15.1% - CoinPost Terminal