Kakao Bank reported record earnings on the back of higher non-interest income, the internet-only lender said Wednesday in a regulatory filing.
Net profit climbed 24 percent on-year to 440.1 billion won ($303.8 million) in 2024, the highest since its launch in 2017. Operating profit jumped 26.8 percent to 606.9 billion won. In the fourth quarter, net profit stood at 115 billion won, while operating profit came to 84.5 billion won.
The robust performance was driven by a surge in non-interest income, including gains from commissions, platform business and financial investment assets. Non-interest income soared 25.6 percent to 889.1 billion won, while loan interest income rose 15.1 percent to 2.56 trillion won.
The lender also continued to expand its customer base, reaching 24.88 million users by year-end, with monthly active users at 18.9 million.
Deposit and loan balances stood at 55 trillion won and 43.2 trillion won, respectively.
The net interest margin stayed at 2.15 percent in the fourth quarter, unchanged from the previous quarter but down from 2.36 percent a year earlier. The delinquency rate edged up 0.04 percentage points on-quarter to 0.52 percent.
Kakao Bank reaffirmed its commitment to financial inclusion, a key mandate for internet-only banks, with over 2.5 trillion won in loans to mid- to low-credit borrowers issued last year. These loans accounted for 32.4 percent of its portfolio, exceeding the government’s 30 percent target.
The board approved a dividend of 360 won per share for 2024, more than doubling the total payout from the previous year to 171.5 billion won and raising the total shareholder return ratio to 39 percent.
Kakao Bank also reiterated its commitment to value-enhancement goals, targeting 30 million customers and 100 trillion won in assets by 2027, with a 15 percent return on equity by 2030. To achieve this, it plans various new offerings this year, including an AI-powered financial calculator and a mobile identification service, strengthening its position as a full-service financial platform.
