K Bank Reports Record High H1 Net Profit of 85.4 Billion KRW

K Bank recorded its highest-ever net profit in the first half of this year, driven by growth in interest income and non-interest income.

According to K Bank on the 13th, the net profit for the first half of this year was 85.4 billion KRW, more than three times the 25 billion KRW recorded in the first half of last year. This is the best performance since its launch in 2017. The bank achieved results in just the first half that surpassed the annual record net profit of 83.6 billion KRW set in 2022.

Net profit for the second quarter also surged to 34.7 billion KRW, more than double the 14.7 billion KRW recorded in the second quarter of last year. A K Bank official explained, “As the number of customers increased, core internet banking businesses such as banking and platform services grew together, expanding profits, while win-win finance, including the proportion of medium- and low-credit loans, also expanded.”

K Bank’s interest income in the first half was 264.2 billion KRW, a 26% increase compared to 209.7 billion KRW in the same period last year. Non-interest income doubled to 32.7 billion KRW from 15.5 billion KRW in the previous year’s same period.

As of the first half of this year, K Bank’s deposit balance stood at 21.85 trillion KRW, and loan balance at 15.67 trillion KRW, up 25.8% and 23.7% respectively compared to the same period last year.

K Bank’s delinquency rate for the first half was 0.90%, marking a decline for two consecutive quarters since recording 0.96% at the end of last year.

K Bank’s net interest margin (NIM) for the first half was 2.26%. The total capital ratio under the Basel Committee on Banking Supervision (BIS) at the end of the first half was 13.86%, up 0.16 percentage points from the previous quarter, supported by profit growth and an increase in the proportion of safe assets. K Bank maintained its top-tier cost competitiveness in the banking sector with an operating expense ratio (CIR) of 30.24% for the first half.

The average proportion of medium- and low-credit loans in the second quarter was 33.3%, up 0.1 percentage points from the first quarter. K Bank plans to expand loans to individual business owners to help alleviate management difficulties faced by self-employed and small business owners.

K Bank also continued its external growth, with the number of customers reaching 11.47 million at the end of the first half, including 1.14 million new customers added in the second quarter alone.

Meanwhile, K Bank filed for a preliminary review for listing on the Korea Exchange’s KOSPI market at the end of June and is currently pursuing an initial public offering (IPO). Through achievements such as profit expansion, improved soundness, and expanded win-win finance in the first half, K Bank plans to gain recognition for its differentiated corporate value.

Choi Woo-hyung, CEO of K Bank, said, “In the second quarter of this year, external growth continued while the loan loss cost ratio stabilized, leading to the best half-year performance. Based on growth and profitability, we will successfully complete the IPO to further expand our customer base and actively practice win-win finance, including expanding medium- and low-credit loans.”