KakaoBank (323410) Q4 2023 earnings summary

Executive summary

• 2023 operating profit reached W478.5bn, up 35% YoY, supported by loan growth and disciplined cost management; customer base rose 2.42mn to 22.84mn.

• Q4 operating revenue was W663.7bn, up 36.9% YoY, while operating profit was W102.8bn, up 19.8%, and net profit was W75.7bn, up 24.9%.

Financial highlights

• Q4 interest revenue rose 41.7% YoY to W566.1bn; fee revenue increased 11.4% to W47.7bn, while platform revenue increased 9.8% to W18.0bn.

• Q4 operating expenses rose 45.4% YoY to W496.1bn, including interest expense up 108.6% to W254.9bn; provision for credit cost was W64.8bn, up 12.3%.

• Q4 operating profit fell 19.4% QoQ to W102.8bn and net profit fell 20.6% to W75.7bn; operating revenue increased 1.1% QoQ to W663.7bn.

Outlook and guidance

• 2024 service pipeline includes 100% online Bogeumjari mortgage loans in Q1 and IPO investment and FX services in Q2; mortgage refinancing and fund services launched in January.

• Planned expansion of refinancing from credit loans to mortgage and housing-deposit loans, alongside broader platform services and customer coverage.