KakaoBank (323410) Q2 2024 earnings summary

Executive summary

• Customer base expanded to 24.03 million as of June 2024, with 10.5% YoY growth and improved delinquency rates; monthly active users reached 17.88 million.

• Achieved record H1 operating profit of KRW 318.2 billion, up 28% YoY, and net income of KRW 231.4 billion, up 25.9% YoY.

• Operating profit up 52% YoY and 14% QoQ, supported by interest and platform revenue growth.

• Asset quality remained sound, with delinquency rate at 0.48% and credit cost ratio down to 0.53%.

• Maintained strong credit ratings (AA+ stable) and digital leadership.

Financial highlights

• Q2 operating revenue rose 20% YoY and 2% QoQ to KRW 734.1 billion.

• Net profit increased 47% YoY and 8% QoQ to KRW 120.2 billion.

• Total assets reached KRW 61.0 trillion as of June 2024, up 12% from year-end 2023; loans at KRW 42.7 trillion, deposits at KRW 53.4 trillion.

• Financial investments reached KRW 14.7 trillion in H1, with investment profit up 22% YoY to KRW 251.7 billion.

• Cost-to-income ratio improved, with SG&A at KRW 232.5 billion for H1 2024 and CIR at 35.4%.

Outlook and guidance

• Loan growth guidance unchanged, focusing on SOHO business owner loans and portfolio expansion.

• Full-year NIM guidance is 2.2%, but may be slightly lower due to market rate declines; NIM expected to improve in H2.

• Plans to expand SOHO subsidized loan coverage to 80% of regions and launch online SOHO secured loan in 2025.

• Value-up program to be disclosed in Q4, focusing on growth, efficiency, inclusive finance, dividend policy, and treasury share management.

• Continued investment in IT, security, and customer experience to maintain digital leadership.