KakaoBank's net plunges 17.7% to $43.5 million

KakaoBank office in Pangyo, Gyeonggi [KAKAOBANK]

KakaoBank's net fell 17.7 percent in the second quarter to 57 billion won ($43.5 million), more than 20 percent lower than FnGuide’s 74.1-billion-won projection.

“KakaoBank’s setting aside of 12.6 billion won to prepare for future economic uncertainties contributed” to the decline of net profit, said Jeon Beom-jun, a spokesperson for KakaoBank.

Net profit in the first half was 123.8 billion won, up 6.7 percent on year, and a record high for the period.

Earnings from interest margins rose 63.4 percent on year in the April-June period to 292.9 billion won, 2.8 percent higher than the market consensus.

Outstanding loans grew 3.7 percent to 26.82 trillion won at the end of the first half of the year compared to the end of last year.

The company plans to introduce new types of mortgages in the second half of the year.

KakaoBank “plans to launch financial products targeting individual business operators and prepare to enter the global market in the second half of the year,” said the company in a statement.

The number of KakaoBank customers grew 15 percent on year to 19.2 million in the second quarter. Monthly active users grew 4.8 percent in the same period to 15.4 million.

KakaoBank shares have fallen more than 60 percent from their peak last August. They closed at 31,400 won on Wednesday.

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