Toss Bank Reports 28 Billion KRW Net Loss in 1Q... Records Positive Net Interest Income

Toss Bank announced on the 30th that it posted a net loss of 28 billion KRW in the first quarter of this year. This reduced the deficit by 37.4 billion KRW compared to the previous year (-65.4 billion KRW).

According to Toss Bank, the profit before provision was a surplus of 49.2 billion KRW, an increase of 89.3 billion KRW compared to the previous year (-40.1 billion KRW). The nominal net interest margin (NIM) reached 1.76% in the first quarter, nearly 2 percentage points higher than the previous year (-0.21%), marking the highest level since its launch.

The net interest income for the first quarter was 112 billion KRW, achieving more than half of last year's annual net interest income (217.4 billion KRW), and non-interest income for the first quarter was 12.5 billion KRW, a fivefold increase compared to the previous year (2.4 billion KRW). As of the first quarter, the loan balance was 9.3 trillion KRW, and the deposit balance was 22 trillion KRW.

Toss Bank explained, "As of the first quarter, the loan loss provision coverage ratio against non-performing loans was 269%, securing the highest level of loss absorption capacity in the banking sector in advance, thereby managing financial soundness." Toss Bank added that it has additionally allocated 76 billion KRW in loan loss provisions, the largest amount among internet-only banks, bringing the current provision balance to the 260 billion KRW range.

As of the first quarter, the proportion of loans to middle- and low-credit borrowers was 42.06%. The Basel III (BIS) capital adequacy ratio reached 12.76%, up 1.41 percentage points from the end of last year (11.35%). A Toss Bank official stated, "Based on solid liquidity and loss absorption capacity, we will thoroughly prepare for risks while strengthening our loan portfolio, including rental deposit loans and joint loans, to solidify our position as a first-tier financial institution."