KakaoBank (323410) Q3 2025 earnings summary

Executive summary

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

• Deposit balance rose to KRW 65.7 trillion, up 21% year-on-year, with efficient allocation across loans and treasury, maintaining a high low-cost deposit ratio.

• Platform revenue increased 7% year-on-year to KRW 23.3 billion; operating revenue up 2% year-on-year to KRW 764.7 billion, driven by platform and treasury management growth.

• SOHO Loans grew over 9% QoQ and 5% YoY, while household loan growth was minimal due to regulatory factors and NIM declined due to asset-liability spread compression.

• Operating profit and net profit declined YoY, despite growth in platform and treasury management businesses.

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 was KRW 151.1 billion (-13.0% YoY), net profit KRW 111.4 billion (-10.3% YoY).

• Deposit balance increased by KRW 2 trillion QoQ, with low-cost deposits at 59%.

• SG&A rose 17% YoY due to higher labor and marketing costs; cumulative CIR at 36.9%.

• Total assets reached KRW 73.99 trillion (+19.0% YoY), loans at KRW 46.70 trillion (+4.9% YoY).

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.

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

• AI-powered services and stablecoin initiatives planned for late 2025 to enhance platform capabilities.

• CIR likely to rise slightly in 2025 due to hiring and IT costs, but targeted for improvement in 2026.

• Shareholder return ratio planned to increase to up to 50% by 2026, with mid-40% range expected for 2025.