KakaoBank (323410) Q3 2025 earnings summary

Executive summary

• Customer base reached 26.24 million, with MAU and WAU at all-time highs, reflecting strong engagement across age groups and driven by new services like Mobile ID and MyKid.

• Deposit balance rose to KRW 65.74 trillion, up 21% year-on-year and 3% QoQ, maintaining a high low-cost deposit ratio.

• Operating revenue increased 2.5% year-on-year to KRW 764.7 billion, with platform revenue up 7% YoY to KRW 23.3 billion.

• Net income for the first nine months of 2025 rose 5.5% YoY to KRW 375.1 billion, though operating and net profit for Q3 declined YoY due to higher SG&A.

• New product launches and AI-driven services contributed to customer inflow, engagement, and digital leadership.

Financial highlights

• Operating revenue for Q3 was KRW 764.7 billion (+2.5% YoY); interest revenue KRW 614.3 billion (+0.5% YoY); platform revenue KRW 23.3 billion (+7.0% YoY).

• Operating profit for Q3 was KRW 151.1 billion (-13.0% YoY); net profit KRW 111.4 billion (-10.3% YoY).

• Total assets reached KRW 73.99 trillion (+19.0% YoY); deposits at KRW 65.74 trillion (+21.0% YoY); loans at KRW 46.70 trillion (+4.9% YoY).

• SG&A expenses increased 17% YoY, mainly from higher labor and marketing costs; cumulative CIR at 36.9%.

• Net interest income for the first nine months of 2025 was KRW 962.4 billion; net fee and commission income at KRW 19.5 billion.

Outlook and guidance

• Loan growth expected to improve in Q4 with full-scale execution of Bogeumjari Loans and SOHO secured loans, though annual growth may fall short of initial 10% target.

• Shareholder return ratio planned to increase to up to 50% by 2026, with mid-40% range expected for 2025, contingent on BIS ratio exceeding major peers.

• Continued focus on AI-driven service innovation, expansion of digital financial products, and stablecoin initiatives planned for late 2025.

• Expansion of product lineup in group and minor accounts to drive future deposit growth.

• Monitoring macroeconomic and regulatory conditions to maintain capital adequacy and sustainable growth.