K-Bank Announces Value-Up Plan... "100 Trillion KRW in Assets Within 3 Years"

Presentation of targets including customer numbers by 2027
Based on an average annual growth rate of over 15% for 6 years
Goal to achieve a 15% return on equity

KakaoBank announced its plan to enhance corporate value and expressed its ambition to achieve assets of 100 trillion won within three years. This represents a 61% increase compared to the total assets of 62 trillion won in the third quarter of this year. Furthermore, the bank plans to strengthen its profit-generating capabilities and lead shareholder returns based on both quantitative and qualitative growth.

On the 26th, KakaoBank held the '2024 Analyst Meeting' at its office in Yeouido, Seoul, where it revealed these plans. At the event, Yoon Ho-young, CEO of KakaoBank, personally unveiled the 'Growth-Centered Value-Up Strategy' and introduced specific execution plans to achieve strategies in each sector. The value-up strategy will focus on two pillars: 'sustained growth' and 'expansion of innovation.'

KakaoBank aims for quantitative and qualitative growth by 2027, targeting assets of 100 trillion won, 30 million customers (13 million active users), and an average annual growth of 20% in fee and platform revenues. To sustain growth, the bank will first launch dedicated services for diverse customer groups ranging from infants to middle-aged adults to expand penetration across all age groups. It will introduce new deposit products and enhance the usability and benefits of group accounts. Services for foreign customers, such as dedicated deposit and withdrawal accounts for foreigners residing in Korea, are also being prepared. The bank will also expand Banking-as-a-Service (BaaS), allowing partner channels to use KakaoBank’s banking services.

Additionally, KakaoBank plans to spread innovation and expand financial gains through investments, mergers and acquisitions (M&A), and global expansion. By accumulating experience in overseas markets, it will explore opportunities to enter new businesses such as multi-finance and solution-based BaaS. Banking services that have received positive responses domestically will also be applied in overseas expansions. The bank will pursue an 'Artificial Intelligence (AI) First' strategy, staffing more than 10% of its workforce with AI-related personnel to simplify services like transfers and inquiries and introduce personalized recommendation services. Through this diversification of revenue models, KakaoBank aims to achieve a non-interest income ratio exceeding 40% of operating revenue by 2030, excluding loan interest income.

Based on growth and innovation, KakaoBank announced it will achieve a high capital adequacy ratio and implement an active shareholder return policy. Over the next three years, if the Bank for International Settlements (BIS) ratio exceeds the average of major commercial banks in the previous year, the shareholder return ratio will be increased from the current 20% to up to 50%. The bank will also pursue capital efficiency, actively utilizing growth capital based on sufficient capital capacity. Profitability will be improved simultaneously, with operating profit expected to grow at an average annual rate of over 15% and return on equity (ROE) raised to over 15% by 2030.

CEO Yoon Ho-young stated, "We will optimize revenue models such as net interest margin (NIM) and platforms based on overwhelming traffic and expand our core competitiveness into global, investment, and M&A areas. We will establish a shareholder return policy that actively shares the fruits of growth with shareholders and strengthen capital efficiency through this." He added, "Based on AI transformation capabilities, we will pursue the AI First strategy to innovate customer experience, enhance financial stability, and optimize operations."