KakaoBank (323410) Q1 2026 earnings summary

Executive summary

• Achieved record net profit of KRW 187.3 billion in Q1 2026, up 36% YoY, driven by customer base expansion, strong global business, and robust growth in net interest and fee income.

• Customer base reached 27.27 million (+570,000 YTD), with MAU at an all-time high of 20.55 million.

• Maintained robust asset quality and capital adequacy, with a BIS capital ratio of 22.18% and LCR of 933%.

• Accelerated rollout of AI-driven services and digital banking enhancements.

Financial highlights

• Operating revenue rose 4.4% YoY to KRW 819.3 billion, led by 9.5% YoY growth in interest income.

• Net interest income increased 15% YoY to KRW 373.4 billion; fee and commission profit up 47% YoY.

• Deposit balance increased 15% YoY to KRW 69.4 trillion; loan balance up 8% YoY to KRW 47.7 trillion.

• NIM at 2.00%, ROE at 11.36%, ROA at 0.98%.

• Cost-to-income ratio improved to 16.9%.

Outlook and guidance

• Plans to expand shareholder return to 50% by 2026, with DPS as the main metric from 2027.

• SG&A growth to be controlled within 10% for 2026, with IT and D&A expenses possibly rising 40%+ YoY.

• Continued investment in AI, infrastructure, and new product launches, including services for foreign nationals.

• Headcount increase for 2026 to be under 100, focused on essential tech and operational roles.