South Korea’s KakaoBank Corp. reported a record net profit of 111.2 billion won ($81 million) for the first quarter of this year, marking a 9.1% increase from the same period last year. This impressive growth is a significant jump of 46.9% from the fourth quarter of 2023.
The bank attributes its strong financial performance to steady growth in both its loans and deposits. By the end of March, KakaoBank’s loan balances had increased by 6.7%, reaching 41.3 trillion won, up from 38.7 trillion won at the end of December 2023. A significant part of this increase came from mortgage loans, which surged by 29.7% to 11.8 trillion won.
Despite the overall positive trend, the bank noted a slight decrease in unsecured personal loans, which dipped from 16.4 trillion won to 16 trillion won. On the deposit side, KakaoBank saw a robust 12.3% increase in deposit balances, which reached 53 trillion won at the close of the quarter.
KakaoBank’s substantial growth in key financial sectors underlines its solid position in the competitive banking landscape of South Korea, driven by strategic lending practices and an appealing suite of deposit offerings.
