KakaoBank (323410) Q2 2025 earnings summary

Executive summary

• Customer base reached 25.86 million, with record-high MAU and WAU, and strong deposit and platform revenue growth in the first half of 2025.

• Operating profit for the first half was KRW 353.2 billion, up 0.2% year-over-year, with platform revenue up 13% year-over-year.

• New AI-powered services and product launches contributed to increased user engagement and revenue diversification.

Financial highlights

• Second quarter operating revenue was KRW 778 billion, up 6% year-over-year but down 1% quarter-on-quarter; net profit was KRW 126.3 billion, up 5% year-over-year.

• Deposit balance at quarter-end was KRW 63.7 trillion, up 5% quarter-on-quarter and 19% year-over-year; loan balance reached KRW 44.8 trillion, up 1% quarter-on-quarter and 5% year-over-year.

• Fee and platform revenue rose 7.7% year-over-year; non-loan interest revenue portion increased 6.2% year-over-year.

• Financial investment AUM increased to KRW 25.2 trillion, with profits up KRW 16.2 billion quarter-on-quarter.

• SG&A expenses increased 10.2% year-over-year, mainly due to higher IT and labor costs.

Outlook and guidance

• Loan growth for the full year is expected to be close to the initial 10% guidance, driven by SOHO and policy-related loans despite tighter government controls.

• NIM guidance revised downward to 1.9% for 2025 due to market rate expectations and deposit growth.

• Fee and platform business growth may fall below previous double-digit guidance due to regulatory and fee changes.

• Plans to expand mortgage loan coverage with the launch of Bogeumjari Loan and broaden payment services via PLCC.

• Global expansion continues, with successful entry into Indonesia and selection as a virtual banking licensee in Thailand.