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Photo courtesy of KakaoBank |
[Alpha Biz= Kim Jisun] KakaoBank reported a record net profit of KRW 480.3 billion in 2024, marking its strongest annual performance since inception, driven largely by a sharp rise in non-interest income that surpassed KRW 1 trillion for the first time.
KakaoBank said on Tuesday that its consolidated net profit for 2024 rose 9.1% year-on-year to KRW 480.3 billion. Fourth-quarter net profit stood at KRW 105.2 billion, up 24.5% from the same period a year earlier.
The strong earnings were underpinned by growth in non-interest income. While cumulative interest income declined 2.9% year-on-year to KRW 1.9977 trillion, reflecting tighter household lending regulations, non-interest income jumped 22.4% to KRW 1.0886 trillion. Non-interest income accounted for more than 35% of total operating income of KRW 3.0863 trillion.
Within non-interest income, gains from treasury operations—including bond and investment fund investments—rose 26% year-on-year to KRW 670.8 billion. Fee and platform-related income also increased 2.9% to KRW 310.5 billion, supported by growth in loan and investment platforms as well as advertising-related businesses.
After declining through the third quarter, KakaoBank’s loan balance rebounded in the fourth quarter, led by growth in lending to sole proprietors. The bank’s annual net interest margin (NIM) narrowed to 1.94%, down 0.21 percentage points from a year earlier, though it improved 0.13 percentage points quarter-on-quarter.
Asset quality remained stable. The delinquency ratio at the end of the fourth quarter stood at 0.51%, unchanged from the previous quarter. The proportion of credit loans extended to mid- to low-credit borrowers fell 0.8 percentage points quarter-on-quarter to 32.1%.
KakaoBank also strengthened shareholder returns. The total dividend payout amounted to KRW 219.2 billion, translating into a total shareholder return ratio of 45.6%.
Looking ahead, KakaoBank plans to enhance deposit competitiveness targeting foreign customers, while accelerating overseas expansion through its joint venture virtual bank in Thailand. The bank also said it is exploring acquisitions of payment and capital companies to support entry into new business areas.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
