Kbank net income drops as loan-loss reserves increase

Finance

Kbank net income drops as loan-loss reserves increase

Published: 15 Aug. 2023, 17:30 Updated: 15 Aug. 2023, 18:04

JIN MIN-JI
jin.minji@joongang.co.kr

The corporate image of Kbank [YONHAP]

Korean internet-only bank Kbank reported Monday that its second-quarter net income dropped 31 percent from a year earlier on increased loan-loss reserves.

Net income stood at 14.7 billion won ($11 million) in the April-June period, compared with a net profit of 21.3 billion won a year earlier, the company said in a statement.

From a quarter earlier, its net profit surged 41 percent.

Its interest income soared 19 percent on year to 107 billion won in the second quarter on an expanded customer base and increased loans.

Its non-interest income more than tripled to 7.4 billion over the cited period, and it set aside 60 billion won in reserves during the second quarter.

At the end of December 2022, the number of customers stood at some 8.9 million, and its net interest margin, a gauge of profitability, stood at 2.26 percent.

Yonhap