[Click e-Stock] "KakaoBank: A Transitional Period of Both Expectations and Concerns"

On August 7, Shinhan Investment Corp. slightly raised its target price for KakaoBank to 30,000 won, citing expectations for tangible results driven by growth in new business areas such as artificial intelligence (AI) and stablecoins.

KakaoBank posted a net profit of 126.3 billion won in the second quarter of this year, up 5% from the same period last year. While real estate-related loans decreased by 0.8%, growth was led by credit loans (up 2.6%) and loans to individual business owners (up 12.5%). Deposits increased by 5.4%, mainly due to savings products.

Park Hyunwoo, a researcher at Shinhan Investment Corp., explained, "The credit loss cost ratio is being managed at a relatively low level of 52 basis points, and key soundness indicators such as adjustments to the loan portfolio and a focus on guaranteed loans continue to show stable trends."

Park predicted that the success of KakaoBank's new business initiatives will serve as a trigger for a rebound in its stock price going forward.

He stated, "The growth strategy based on differentiated customer acquisition and deposit growth, which are KakaoBank's core strengths, remains valid. The actual number of customers continues to increase steadily, the bank maintains overwhelming funding competitiveness compared to traditional banks, and the weakened interest income base has been offset by a flexible growth strategy and increased operating profit."

He added, "However, as investment sentiment has weakened due to stricter household loan regulations, we are slightly raising the target price to 30,000 won to reflect expectations for a rebound in the stock price, with the keys being the expansion of AI and stablecoin businesses and confirmation of global expansion results in countries such as Indonesia and Thailand."