Kakao Bank Almost Triples Q1 Net Profit

Internet-only lender Kakao Bank's first-quarter net profit surged by 181 percent from a year earlier to 18.5 billion won mainly due to increased interest income.

The first-quarter tally even surpassed the bank's full-year net of 13.7 billion won in 2019.

Kakao Bank's interest income in the first quarter increased 54.9 percent from a year ago to 84.4 billion won due to loan assets.

Fee losses were also down to 3.1 billion won from 14.9 billion won in the previous year.

Kakao Bank's assets totaled 23.4 trillion won in the first quarter, with its lending reaching 16.4 trillion won. Its net interest margin is at 1.54 percent, posting a loan delinquency rate of 0.20 percent, which was the same as the end-2019.

Kakao Bank is currently one of two internet-only lenders in South Korea, the other being K Bank.

But a preliminary approval was given for a new player last December to fuel competition.