K Bank Q3 Net Profit 37 Billion KRW... 180% Increase YoY

"Quarterly and Cumulative Record High Performance"

K Bank announced on the 13th that it recorded a net profit of 37 billion KRW in the third quarter of this year. This figure represents a 180% increase compared to the same period last year (13.2 billion KRW) and is the highest performance ever recorded for a third quarter. The cumulative net profit for the year up to the third quarter reached 122.4 billion KRW, setting a new record high as well.

Interest income amounted to 107.4 billion KRW, and non-interest income was 12 billion KRW. In particular, K Bank explained that it has laid the foundation to strengthen the profitability of non-interest income through services such as ▲stock accumulation service ▲establishment of an investment tab ▲GLN overseas payment ▲launch of the One Check Card.

External growth also continued. As of the end of the third quarter, the number of K Bank customers reached 12.05 million, a 31.6% increase compared to the same period last year. K Bank explained that the parking account ‘Plus Box,’ which offers industry-leading interest rates, and the ‘Deposit and Withdrawal Reward Service,’ which provides cash benefits just by depositing and withdrawing, attracted customers.

K Bank announced on the 13th that it recorded a net profit of 37 billion KRW in the third quarter of this year. This figure represents a 180% increase compared to the same period last year (13.2 billion KRW) and is the highest performance ever recorded for the third quarter. Photo by K Bank

Deposit balances recorded 22 trillion KRW, and loan balances reached 16.2 trillion KRW, increasing by 27.4% and 26.4%, respectively, compared to the same period last year. In the deposit sector, the Plus Box, which expanded customer benefits, led the growth. In September, K Bank applied an annual interest rate of 3% for large deposits exceeding 50 million KRW and abolished the previous limit of 1 billion KRW, targeting the affluent middle class. After two months, the number of large deposit customers increased by 25%.

Loan growth was driven by strong performance in secured loans. In the third quarter, K Bank’s apartment mortgage loans and jeonse (key money deposit) loans increased by 470 billion KRW and 200 billion KRW, respectively. For apartment mortgage loans, 70% of the increase in balance was due to refinancing loans, which helped reduce the interest burden for customers who previously held mortgage loans. The proportion of secured loans, including guaranteed loans, accounted for 51.8% of K Bank’s total loans, surpassing 50% for the first time since its launch.

Asset quality also continued to improve. The delinquency rate fell to 0.88%, declining for three consecutive quarters. The Basel III total capital ratio (BIS ratio) rose by 0.56 percentage points from the previous quarter to 14.42%, thanks to profit growth and an increase in the proportion of safe assets. The net interest margin (NIM) stood at 2.07%. Based on improved asset quality, K Bank is accelerating efforts to practice win-win finance. The proportion of mid-to-low credit loans among credit loans in the third quarter increased by 1.2 percentage points from the previous quarter (33.3%) to 34.5%.

Choi Woo-hyung, CEO of K Bank, said, “In the third quarter, we achieved record-high results both quarterly and cumulatively for the year, continuing growth while also delivering several achievements such as asset quality improvement and practicing win-win finance.” He added, “Next year, we plan to expand our business base through listing and, based on this, pursue the development of various retail products, expansion of the SME (small and medium-sized enterprise) loan market, and strengthening of tech capabilities.”