Net Interest Income Rises by 16% Despite Declining Interest Rates
Toss Bank achieved a net profit of 18.7 billion KRW in the first quarter of 2025. This marks its seventh consecutive profitable quarter and represents the largest quarterly result since its establishment.
According to the first quarter 2025 business disclosure by internet-only bank Toss Bank on May 30, Toss Bank recorded a net profit of 18.7 billion KRW in the first quarter, which is a 26.2% increase compared to the same period last year (14.8 billion KRW).
Although the base interest rate began to decrease in the second half of last year, net interest margin increased and outstanding loan balances grew, leading to a rise in interest income.
Toss Bank’s net interest income for the first quarter was 204.5 billion KRW, up approximately 16.3% from the same period last year (175.9 billion KRW).
The nominal net interest margin (NIM) for the first quarter was 2.60%, which is 0.11 percentage points higher than the same period last year (2.49%).
The size of loans also increased. The outstanding loan balance at the end of the first quarter was 14.85 trillion KRW, up by 1 trillion KRW (7.2%) compared to the end of the first quarter last year (13.85 trillion KRW).
During the same period, the outstanding deposit balance grew by 1.72 trillion KRW (6.1%), from 28.31 trillion KRW to 30.03 trillion KRW.
Non-interest income for the first quarter recorded a loss of 15.2 billion KRW. This is a smaller deficit compared to the first quarter last year (16.7 billion KRW loss).
A Toss Bank representative explained, "Despite the fact that most fees are free and customer-facing costs are high, the diversification of revenue sources such as asset management and joint loans, along with rapid growth, is gradually improving the profit structure of the non-interest segment."
Asset quality indicators have improved. The delinquency rate for the first quarter was 1.26%, down 0.08 percentage points from the first quarter last year (1.34%).
The ratio of substandard and below loans also fell from 1.19% to 0.98% over the same period.
Toss Bank’s Bank for International Settlements (BIS) capital adequacy ratio stood at 15.90%.
A Toss Bank representative stated, "The first quarter 2025 results are the outcome of Toss Bank achieving asset soundness based on growth focused on our core business and its competitiveness," adding, "We will continue to build a stable foundation for growth by balancing innovation and profitability going forward."
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