This article first appeared on GuruFocus .
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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KakaoBank Corp ( XKRX:323410 ) saw a significant increase in its customer base, reaching 26.24 million, up by 1.36 million from the end of 2024.
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The company's deposit balance increased by 21% year-on-year to KRW65.7 trillion, indicating strong growth in its core banking operations.
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Platform revenue rose by 7% year-on-year, reaching KRW23.3 billion, showcasing the company's ability to generate income from its digital services.
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KakaoBank Corp's treasury management AUM increased to KRW25.7 trillion, driven by a rise in deposit inflows, contributing to overall profit growth.
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The company successfully captured nearly 70% of the MMF market with its MMF Box product, demonstrating strong market penetration and customer satisfaction.
Negative Points
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Operating revenue for the third quarter declined slightly on a quarter-on-quarter basis due to a decrease in interest income from loans and treasury management.
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The company's net interest margin (NIM) decreased to 1.81% in Q3, reflecting challenges in maintaining profitability amidst falling interest rates.
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Third-quarter SG&A expenses rose by 17% year-on-year, driven by increased labor costs and marketing spend, impacting overall profitability.
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Growth in household loans was minimal due to external regulatory factors, limiting expansion in this segment.
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Valuation gains on funds and other instruments decreased due to rising market interest rates, affecting treasury management performance.
Q & A Highlights
Q: Can you provide more details on the growth in your customer base and the factors driving this increase? A: (Tae Hun Gwon, CFO) As of the third quarter, our customer base reached 26.24 million, an increase of 1.36 million from the end of 2024. This growth is driven by new services such as mobile ID, market services, and government subsidy search, which have contributed to a steady inflow of new customers.
Q: How has the deposit balance changed, and what strategies are you employing to maintain this growth? A: (Tae Hun Gwon, CFO) Our deposit balance increased to KRW65.7 trillion, up 21% year-on-year. We are focusing on stable operations for signature products like group accounts and launching new offerings such as My Kids Service to enhance our deposit base, which is crucial for our competitiveness.
Q: What impact have market interest rates had on your operating revenue and net interest margin (NIM)? A: (Tae Hun Gwon, CFO) Third-quarter operating revenue was KRW764.7 billion, a 2% increase year-on-year. However, on a quarter-on-quarter basis, it declined slightly due to market interest rate movements affecting interest income from loans and treasury management. Our Q3 NIM was down to 1.81% due to limited room for further reduction in funding costs amidst falling interest rates.
Q: Could you elaborate on your strategy for expanding in the SOHO loan market? A: (Tae Hun Gwon, CFO) We launched property-backed secured loans to expand our coverage in the SOHO loan market, which accounts for 80% of the market. The entire process is conducted through the KakaoBank app using a chat-based interface, enhancing convenience and aiming to increase our market share in SOHO lending.
Q: What are your plans for integrating AI into your services, and how do you expect this to impact your operations? A: (Tae Hun Gwon, CFO) We have been incorporating AI into our services since the second quarter. In the fourth quarter, we plan to introduce AI transfer services and an AI Group Treasurer. These innovations will allow users to perform transactions using natural conversational language, significantly enhancing user experience and operational efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
