KakaoBank (323410) Q4 2025 earnings summary

Executive summary

• Customer base expanded by 1.82 million year-on-year, reaching 26.7 million at end-2025, with record-high engagement metrics (MAU 20 million, WAU 14.7 million).

• Deposits grew 24% year-on-year to KRW 68.3 trillion, driven by new products and group account growth.

• Loans increased 9% year-on-year, supported by policy-backed, SOHO, and Bogeumjari loans.

• Operating profit for 2025 rose 7% year-on-year to KRW 649.4 billion, with Q4 operating profit up 26% year-on-year to KRW 145.1 billion, supported by treasury management gains and lower SG&A costs.

• Superbank in Indonesia turned profitable, listed on IDX in Dec 2025, tripling its enterprise value since initial investment and contributing significant valuation gains.

Financial highlights

• Q4 operating revenue was KRW 759 billion, up 2% year-on-year, mainly from interest income.

• Net profit for Q4 2025 was KRW 105.2 billion, up 24.5% year-on-year.

• Net interest margin (NIM) improved to 1.94% in Q4, up 13 bps quarter-on-quarter, with full-year NIM stable at 1.94%.

• SG&A expenses fell 13% year-on-year in Q4, mainly due to a one-off labor cost reversal of KRW 20 billion and a 32.1% reduction in labor costs.

• Cost-to-income ratio improved to 36.4% in 2025 from 37.3% in 2024.

Outlook and guidance

• Loan growth in 2026 expected to be consistent with 2025, focusing on policy-backed and SOHO loans amid regulatory controls.

• NIM projected to rise slightly in 2026 if benchmark rates remain stable.

• Fee and platform income targeted to grow over 20% year-on-year in 2026, with advertising and loan comparison services as key drivers.

• Treasury management profits expected to rise through high-yield bond purchases and diversified fund investments.

• Expansion into Thailand's virtual banking market planned for 2026, with new services in foreign currency, crypto, and mortgages in the pipeline.