Kakao Bank posts record-high $268M net earnings, up 35%

[KAKAOBANK]

Kakao Bank saw net earnings jump 34.9 percent last year, reaching a record-high 354.9 billion won ($268 million), according to a regulatory filing Wednesday, driven by a steep growth in interest profit.

Its net earnings beat analyst expectations, forecast at 346.8 billion won by the market tracker FnGuide.

Annual operating profit was also at a record high, climbing 35.5 percent to reach 478.5 billion won to beat an expected 458.8 billion won.

An increase in interest profit pushed up the company's bottom line, with the government-led loan refinancing initiative bringing a new inflow of customers.

Kakao Bank racked up 2.05 trillion won of interest profit in 2023, an on-year increase of 58.3 percent. The net interest margin reached 2.36 percent as of the fourth quarter, up from the previous quarter's 2.31 percent.

The company’s deposit balance stood at 47.1 trillion won as of the end of last year, up 42 percent compared to the same period a year earlier. Its loan balance grew 39 percent to reach 38.7 trillion won in the same time frame.

The company's monthly active users stood at 17.6 million as of the fourth quarter, compared to the previous year's 16.1 million.

Kakao Bank traded strong on the main Kospi bourse on Wednesday, closing at 28,400 won, up 4.03 percent from the previous trading day.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]