Kbank announced on the 11th that it recorded a net profit of 128.1 billion won last year, marking a tenfold increase from the previous year's 12.8 billion won and setting a new record.
A representative from Kbank emphasized, "The rapid growth in customers led to our highest-ever profits."
According to Kbank, 3.21 million new customers joined last year. Excluding the exceptional boom of 2021 due to virtual assets, this is the largest increase since its launch in 2017. By the end of the year, the total number of customers reached 12.74 million.
Kbank explained that the products and services showcasing benefits and fun had a positive effect. The number of customers for the "Money Tree Growing" initiative launched in March last year surpassed 1.8 million. In the third and fourth quarters of last year, they also introduced rewards for deposits and withdrawals and an artificial intelligence quiz challenge.
Deposits also showed growth. By the end of last year, Kbank's deposits were 28.57 trillion won, a 49.8% increase from 19.7 trillion won at the end of 2023. Demand deposits led the overall deposit growth. The portion of demand deposits in Kbank's household deposits increased from 47.1% at the end of 2023 to 59.5% at the end of last year.
The loan balance also increased by 17.6% from 13.84 trillion won at the end of 2023 to 16.27 trillion won last year. The increase in the balance of mortgage loans was driven by the introduction of a loan mobility system and the launch of the first non-face-to-face real estate mortgage loans for individual business owners in the banking sector. Consequently, the proportion of collateral and guarantee loans among total loans grew from 39% at the end of 2023 to 53.1% at the end of last year.
Kbank's interest revenue increased by 6.9% to 481.5 billion won compared to 450.4 billion won the previous year. Non-interest income grew by 81.4% to 61.3 billion won compared to 33.8 billion won in the same period the previous year. This increase in non-interest income was driven by a rise in operational revenue, expanded pump banking fees due to a favorable virtual asset market, increased issuance of check cards, growth in linked loans, and the full-scale activation of platform advertising revenue.
Kbank added that it also focused on practicing inclusive finance last year. The total amount of credit loans supplied to mid- and low-credit customers last year was 1.1658 trillion won. The average annual proportion of mid- and low-credit loans reached 34.1%, exceeding the target of 30%. Additionally, Kbank joined the banking sector’s financial support for livelihoods last year, providing approximately 5.1 billion won in interest cashback to 27,000 small business owners. In February and December, it also donated 50 million won each to support micro-businesses and vulnerable groups facing low birth rates.
The soundness also improved due to efforts to expand the proportion of safe assets and strengthen loan management. Kbank's delinquency rate decreased from 0.96% at the end of 2023 to 0.9% at the end of last year. During the same period, the ratio of non-performing loans stabilized at 0.82%, down from 0.86%. The cost of credit losses also improved from 2.35% to 1.59%. By the end of last year, the Bank for International Settlements (BIS) ratio also rose to 14.67%, compared to 13.18% at the end of the previous year.
Kbank plans to increase its customer base to 15 million this year based on its IT leadership. The company aims to maintain its growth in the corporate loan market while actively engaging in inclusive finance practices and social contribution activities.
Kbank President Choi Woo-hyung said, "We were able to achieve our highest-ever performance last year through increased competitiveness of our products and services, customer growth, and portfolio enhancement, as well as strengthening soundness," adding, "This year, we plan to further solidify our growth foundation through continuous profit realization and soundness management."