Toss Bank Reports 47.6 Billion KRW Net Loss in Q3... First Pre-Provision Profit Surplus

Reduced Deficit Compared to Q2

[Asia Economy Reporter Sim Nayoung] Internet-only bank Toss Bank announced on the 30th that its net loss in the third quarter was 47.6 billion KRW, reducing the deficit by 11.3 billion KRW compared to the previous quarter (-58.9 billion KRW).

The profit before provisioning in the third quarter was 18.5 billion KRW, marking its first profit. This was the first time since its establishment in October last year that it recorded a profit. The cumulative net loss up to the third quarter was 171.9 billion KRW, of which the provisioning amount accounted for about 80%, or 133.4 billion KRW. The number of customers at the end of the third quarter was 4.76 million, increasing to 5.04 million as of the end of October.

As of the end of September, the loan balance recorded 7.1 trillion KRW, growing approximately 66% compared to the previous quarter (4.3 trillion KRW). The deposit balance was 23.1445 trillion KRW. The loan-to-deposit ratio, which refers to the ratio of loan balance to deposit balance, was recorded at 29.57%, nearly doubling from 15.62% in the second quarter.

The nominal net interest margin (NIM) was 0.54% in the third quarter, rising 4.5 times compared to 0.12% in the second quarter. The BIS capital ratio in the third quarter was 11.35%.

A Toss Bank official stated, "The proportion of household loans to low- and medium-credit borrowers in the third quarter was 39%, and for the first time among first-tier banks, it exceeded 40%, embracing the previously underserved ‘healthy low- and medium-credit borrowers.’ Although the net fee income was a deficit of 40.9 billion KRW, we are keeping our promise to customers that Toss Bank will bear all fees."