Toss Bank Reports 17.5 Billion KRW Net Loss Last Year... Reduced Deficit Compared to Previous Year

Net Interest Income Increased by 155% to 554.8 Billion Won

Internet-only bank Toss Bank recorded a net loss of 17.5 billion KRW last year.

On the 29th, Toss Bank announced through a management disclosure that its net loss last year was 17.5 billion KRW, a 93.4% reduction compared to the previous year (-264.4 billion KRW). Toss Bank turned a profit for the first time in the third quarter of last year (8.6 billion KRW) and posted a net profit of 12.4 billion KRW in the fourth quarter as well.

Toss Bank Headquarters, Gangnam-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Specifically, interest income improved significantly as loan assets increased during the high-interest rate period. Toss Bank’s net interest income last year was 504.8 billion KRW, a 155% surge from the previous year (217.4 billion KRW). The net interest margin (NIM) also rose by 1.39 percentage points to 2.18% from 0.79% the previous year.

According to Toss Bank, the loan balance at the end of last year was 12.4 trillion KRW, and the deposit balance was 23.7 trillion KRW. These amounts increased by 3.4 trillion KRW and 3.8 trillion KRW, respectively, compared to the end of the previous year (8.6 trillion KRW and 20.3 trillion KRW).

However, due to the deterioration of asset quality indicators amid high interest rates, the provision for loan losses increased. The delinquency rate at the end of last year was 1.32%, up 0.6 percentage points from 0.72% the previous year, and the provision for loan losses totaled 323.2 billion KRW, about 1.7 times the previous year’s 186 billion KRW.

Meanwhile, Toss Bank’s customer base was recorded at 8.88 million as of the end of last year, an increase of 3.48 million from 5.4 million at the end of the previous year. As of this month, the number of subscribers reached 9.83 million, making it highly likely to surpass 10 million customers within the first half of the year.

A Toss Bank representative said, "2023 was a year in which we laid the foundation for 'sustainable inclusive finance' capable of structurally generating profits while upholding the values of innovation and inclusion." They added, "We will not forget our role as an internet-only bank and will continue to focus on inclusive finance while doing our best to create innovations that can lead market changes."