Online Lenders Report Sharp Increase in Third Quarter Net Profit
SEOUL, November 2 (Korea Bizwire) – South Korean internet-only banks said on Tuesday that their third-quarter profits had risen sharply on the back of robust customer and deposit growth.
K-Bank, controlled by a consortium of telecommunications giant KT Corp., Woori Bank and 19 other companies, saw third-quarter profits more than double from three months earlier.
Net profit amounted to 16.8 billion won ($ 14.3 million) in the July-September period, compared to 3.9 billion won in the second quarter, K-Bank said in a report. regulatory dossier.
Three months earlier, K-Bank posted the first quarterly profit since its launch in April 2017, a sharp recovery from a net loss of 12.3 billion won in the first quarter.
In the first nine months of the year, K-Bank recorded a cumulative net profit of 8.4 billion won, putting the lender on track for its first annual profit for 2021.
Later in the day, Kakao Bank, affiliated with Kakao Corp., the operator of the country’s dominant messaging app, KakaoTalk, reported that its third-quarter net profit increased 28% year-on-year to 52 billion won.
Its cumulative net profit in the three quarters of the year was a record 167.9 billion won, up 95% from a year ago, the company said in a regulatory filing. .
The good results of the two online banks have been attributed to an increase in the number of customers and the amount of credit deposits.
The number of K-Bank customers stood at 6.6 million at the end of September, compared to 2.19 million at the end of last year.
Kakao Bank’s customer base stood at 17.4 million at the end of September, up from 15.44 million at the end of last year.
K-Bank customer deposits increased from 8.51 trillion won to 12.31 trillion won during the cited period, with outstanding loans increasing from 3.19 trillion won to 6 , 18 trillion won.
Kakao Bank customer deposits increased from 5.25 trillion won to 29.065 trillion won during the same period, and outstanding loans increased from 4.725 trillion won to 25.039 trillion won. won.
In 2017, South Korea allowed the two internet-only banks to offer round-the-clock services with the aim of injecting more competition into the banking industry. The third online lender, Toss Bank, started operations in early October.