Toss Bank Reports 24.5 Billion KRW Net Profit in H1... Record Half-Year Performance

Four Consecutive Quarters of Profitability

Toss Bank announced on the 30th that it recorded a cumulative net profit of 24.5 billion KRW in the first half of this year, marking the largest half-year performance since its launch. This is a significant improvement of 62.9 billion KRW compared to the net loss of 38.4 billion KRW recorded during the same period last year. Toss Bank explained that since turning profitable for the first time in the third quarter of last year, it has recorded profits for four consecutive quarters, increasing the likelihood of achieving an annual profit this year.

Loan and deposit balances also increased significantly. As of the first half of this year, the loan balance stood at 14.8 trillion KRW, and the deposit balance was 28.5 trillion KRW. These figures represent increases of 47.2% and 32.5%, respectively, compared to the same period last year. The loan-to-deposit ratio rose by more than 9 percentage points to 59.6%, up from 50.4% in the same period last year. Total assets increased by 31.5% to 31.1 trillion KRW compared to 23.6 trillion KRW in the same period last year. The net interest margin (NIM) was 2.47%, up 0.55 percentage points from 1.92% in the same period last year. The cumulative net interest income for the first half reached 366.3 billion KRW, more than 50% higher than the 243.8 billion KRW recorded in the same period last year.

Non-interest income doubled to 54 billion KRW compared to 27.7 billion KRW in the same period last year. The sales of bonds and issuance of promissory notes through the ‘Mokdon Gulli-gi’ service contributed significantly to the increase in non-interest income. Additionally, products launched in August such as ‘Hamkke Daechul’ in partnership with Gwangju Bank and ‘Toss Bank Credit Card WIDE’ in collaboration with Hana Card are expected to boost non-interest income in the second half of the year.

The BIS (Bank for International Settlements) capital adequacy ratio as of the first half of this year was 14.69%, an increase of 3 percentage points compared to the same period last year, securing stable capital adequacy. The delinquency rate also decreased by 0.29 percentage points to 1.27% compared to the same period last year. As of the end of June this year, the cumulative provision for loan losses was 261.6 billion KRW, more than 100 billion KRW higher than the 153 billion KRW recorded in the same period last year.

Toss Bank announced on the 30th that it recorded a cumulative net profit of 24.5 billion KRW in the first half of this year, marking the largest half-year performance since its launch.
[Photo by Jinhyung Kang aymsdream@]

As of the first half of the year, the number of customers reached 10.55 million, more than 1.5 times the 6.89 million recorded during the same period last year. Toss Bank explained that its pioneering banking services such as the banking sector’s first ‘Lifetime Free Currency Exchange’ service, the ‘Nanwo Mo-eugi’ savings account, and the ‘Dojeon Account’ introduced earlier this year contributed to expanding its customer base.

Toss Bank is also leading in inclusive finance. In the first half of this year, the proportion of loans to low- and medium-credit borrowers was 34.9%, the highest among internet banks. It developed various financial products targeting diverse groups, including the only special product for multi-child families for monthly rent loans among internet banks, a 100% non-face-to-face subscription tax-free comprehensive savings account, and non-face-to-face foreigner account opening.

A Toss Bank official stated, “Rather than focusing on immediate profits, we have broken existing conventions from the customer’s perspective and pursued innovation, which has led to the choice of 10 million customers and connected to profitability. We will continue to strengthen our foundational capabilities such as capital adequacy and soundness to achieve sustainable innovation and inclusion while maintaining customer trust.”