KakaoBank (323410) Q2 2025 earnings summary

Executive summary

• Customer base reached 25.86 million, with record-high MAU and WAU, reflecting strong engagement and growth in deposits and platform revenue in H1 2025.

• Operating profit for H1 2025 was KRW 353.2 billion, up 11% year-over-year, with net income at KRW 263.7 billion.

• Achieved robust platform expansion, driven by new AI-powered services and product launches.

• Maintains strong credit ratings (AA+ stable) and is listed on KOSPI with a diversified shareholder base.

Financial highlights

• Operating revenue for Q2 2025 was KRW 778 billion, up 6% year-over-year; net profit for Q2 was KRW 126.3 billion.

• Deposit balance at quarter-end was KRW 63.7 trillion, up 19% year-over-year; loan balance reached up to KRW 47.5 trillion.

• Fee and platform revenue rose 13% year-over-year in H1 2025; 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.

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

• Dividend policy aims for a payout ratio up to 50% if BIS ratio exceeds major bank average.

• Ongoing focus on capital efficiency and shareholder returns, with flexibility to adjust based on macro and regulatory conditions.