Online lenders show record net profits from January to September. to
South Korean internet-only banks posted a record net profit in the first nine months of this year as new customers rose amid rising demand for household loans and rising loans. interest rate which has helped improve loan deposit margins.
K-Bank said on Tuesday that its net profit stood at 16.8 billion won ($ 14.3 million) for July-September, up from 3.9 billion won in the second quarter and a sharp recovery from a net loss of 12.3 billion won in the first quarter. In the first three quarters, the bank posted 8.4 billion won on a net basis, putting the country’s top online lender on track for its first annual profit this year.
K-Bank, owned by a consortium of telecommunications giant KT Corp., Woori Bank and 19 other companies, has been in the red every year since it opened in April 2017.
Later in the day, Kakao Bank said its cumulative net profit for the three quarters of the year reached a record 167.9 billion won, up 95% from a year ago. Third-quarter net profit increased 28 percent year on year to 52 billion won.
The good results of the two online banks have been attributed to increasing margins on deposit loans with an increase in the number of customers this year, as households and businesses have borrowed heavily under expansionary monetary policies.
The number of K-Bank customers stood at 6.6 million at the end of September, compared to 2.19 million last year. Deposits by the bank’s customers increased from 8.51 trillion won to 12.31 trillion won in the cited period, with outstanding loans doubling to 6.18 trillion won.
Kakao Bank under Kakao Corp., the operator of the country’s dominant messaging app, KakaoTalk, said its customers stood at 17.4 million at the end of September, up from 15.44 million at the end of the year. ‘last year. The number of monthly active users (MAUs) who log in at least once a month exceeded 14.7 million, up 670,000 from the second quarter, becoming the country’s largest banking app.
Kakao Bank customer deposits increased by 5.52 trillion won from the end of last year to 29.06 trillion won, with outstanding loans up 4.72 trillion won to 25.03 trillion won. Kakao Bank debuted in the market in August and has grown to become the largest financial institution in terms of market capitalization.
The country’s first-generation, exclusively mobile banks also stood out with growth in non-interest income.
K-bank’s non-interest income for the third quarter snowballed to 8.5 billion won as its partnership with Upbit, the country’s largest cryptocurrency exchange, led to an increase in the number of K-bank customers.
Non-interest income from Kakao Bank platform fees represented more than 10% of its total operating profit in the third quarter.
[â Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]