KakaoBank achieves record-high H1 net profit

Logo of KakaoBank / Courtesy of KakaoBank

KakaoBank announced Wednesday that it achieved record-high earnings in the first half of this year.

According to the country's largest internet-only bank, net profit for the first half of this year was 231.4 billion won ($167.9 million), up 25.9 percent from a year ago. Operating profit also rose 28.2 percent to 318.2 billion won during the same period.

Interest income in the first half of this year increased by 24.8 percent, reaching 1.18 trillion won. Non-interest income also grew by 19 percent to 270.9 billion won.

"We achieved record-breaking results through the continuous strengthening of our customer base, balanced growth across all sectors including banking and platform business and a commitment to 'inclusive finance,'" KakaoBank explained.

Global expansion is also progressing successfully. Superbank, an Indonesian bank in which KakaoBank made a strategic equity investment, secured about 800,000 customers within a month of its official launch in June.

A Corporate Value-up enhancement plan will be disclosed in the fourth quarter of this year. COO Kim Seok said the bank is considering "how to optimize interest margins and fees to create social value" in addition to "shareholder return measures, such as the disposal of acquired treasury shares and dividends."

Meanwhile, the bank dispelled worries that the legal disputes surrounding Kakao founder Kim Beom-su would not pose a significant problem for entering new business areas. Kakao Corp. is the majority shareholder with a 27 percent stake.

Should Kim and Kakao Corp. receive a penalty exceeding a fine for manipulating stocks over its acquisition of SM Entertainment, financial regulators will reassess its eligibility to remain the largest shareholder of KakaoBank.

"Regarding the issue of major shareholder suitability, new entries are clearly restricted in specific areas such as credit cards, MyData, and CB services," Kim said at the conference call. "For other business and service areas, additional licenses may be granted based on the discretionary judgment of financial authorities after reviewing individual regulations."