Despite Rate Cuts, KakaoBank Achieves Record-High Q1 Net Profit of 137.4 Billion Won

Despite the start of a full-fledged interest rate cut cycle, KakaoBank achieved a record-high net profit of 137.4 billion won in the first quarter. Even though interest income and net interest margin (NIM) declined, the expansion of its customer base and diversification of its business portfolio drove profitability. The proportion of loans to mid- and low-credit borrowers also reached an all-time high of 32.8%, further expanding its practice of inclusive finance.

On May 7, KakaoBank announced its "2025 Q1 Business Results," reporting an operating profit of 183 billion won and a net profit of 137.4 billion won for the first quarter. These figures represent increases of 23.3% and 23.6%, respectively, compared to the previous year.

Of KakaoBank's first-quarter operating revenue of 784.5 billion won, interest income accounted for 502.7 billion won. This is a 0.6% decrease from the same period last year (505.8 billion won), reflecting the overall decline in market interest rates as the rate cut cycle began in earnest.

As of the end of the first quarter, KakaoBank's household loan balance stood at 42.016 trillion won, up 1.825 trillion won from the same period last year (40.191 trillion won). Of this, the balance of mortgage loans increased by 1.268 trillion won to 13.051 trillion won over the same period. In contrast, the balance of Jeonse and monthly rent loans decreased by 607 billion won, from 12.414 trillion won in Q1 last year to 11.807 trillion won. The balance of unsecured household loans increased by 1.164 trillion won over the year, reaching 17.158 trillion won.

The proportion of loans to mid- and low-credit borrowers in KakaoBank's first quarter reached a record high of 32.8%. KakaoBank stated that it supplied 600 billion won worth of loans to mid- and low-credit borrowers in the first quarter alone.

Non-interest income, excluding interest income from lending, was recorded at 281.8 billion won in the first quarter, a 32.9% increase from the previous year's 212 billion won. Notably, with the expansion of loan comparison services and various investment services, the proportion of non-interest income in total operating revenue rose to 35.9%.

Fee and platform income increased by 8.8% year-on-year to 77.6 billion won. Profit and loss from investment financial assets was recorded at 164.8 billion won.

The customer base has also continued to grow steadily. As of the end of the first quarter, KakaoBank had 25.45 million customers, with 570,000 new customers added in the first quarter alone. In particular, the proportion of customers in their 40s increased from 70% to 75%, and those in their 50s from 47% to 55%. The monthly active user (MAU) count reached 18.92 million.

The expansion of the customer base also drove growth in deposits. As of the end of the first quarter, KakaoBank's deposit balance stood at 60.4 trillion won, and its loan balance at 44.3 trillion won.

This year, KakaoBank plans to introduce AI-powered services such as "AI Search" and "AI Financial Calculator," and is also preparing for the upcoming approval of a "virtual bank" license in Thailand in the first half of the year.

KakaoBank stated, "Based on our overwhelming customer traffic, we are diversifying our business portfolio to strengthen growth momentum and are achieving balanced growth across all sectors. This year as well, we will continue to pursue sustainable growth, expand inclusive finance, and introduce innovative new services, striving to become the number one comprehensive financial platform chosen by customers."