Kakaobank's net profit increases 43 percent on year

Kakaobank CEO Yun Ho-young speaks to reporters at a press conference on February 15. [KAKAOBANK]

Kakaobank's net profit increased 43 percent on year to 66.8 billion won ($52.7 million), according to the preliminary report released on Tuesday, falling short of the 74.2 billion won consensus.

Its operating profit was 88.4 billion won in the first quarter, versus a consensus of 102.8 billion-won.

The internet-only bank said it reported the best quarterly operating profit in the January-March period, up 64 percent on year.

The bank’s interest revenue reached 264.2 billion won in the first quarter, up 60 percent on year.

The number of its customers reached 18.61 million in the first quarter, up 15 percent on year. Those aged between 14 and 18 totaled 1.28 million in the first quarter, up 75 percent on year.

The platform's revenue jumped 38 percent in the same period to 25.3 billion won in the first quarter. Platform business included advertisement and co-branded credit cards that were issued with five card partners, including Shinhan, KB and Lotte.

Kakaobank said it plans to prepare for the launch of its service abroad in the second half. It did not specify any countries.

The company is also mulling an introduction of service related to virtual markets.

“Our customers are investing and managing virtual asset as a form of a financial product,” said Kakaobank CEO Yun Ho-young during a conference call held Tuesday. “We’re positively reviewing how we can offer services or business related to virtual assets.”

Another plan is to expand mortgage loans to areas beyond metropolitan areas, which include Seoul, Incheon and Gyeonggi. Kakaobank introduced mortgage loans in February.

BY JIN MIN-JI [jin.minji@joongang.co.kr]