This article first appeared on GuruFocus .
Release Date: February 04, 2026
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, adding 1.82 million customers year-on-year, with total customers reaching 26.7 million by the end of 2025.
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The company's deposit balance grew by 24% year-on-year, reaching KRW68.3 trillion, indicating strong customer trust and engagement.
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Operating profit increased by 7% year-on-year, amounting to KRW649.4 billion, showcasing effective internal management and risk control.
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KakaoBank's investment in Superbank in Indonesia turned profitable and successfully listed on the IDX Exchange, reflecting positive international expansion efforts.
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The company achieved the highest MSCI ESG rating of AAA, demonstrating strong performance in environmental, social, and governance areas.
Negative Points
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Despite the growth in interest income, rising market interest rates led to a slight decline in valuation gains on funds, impacting overall revenue.
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The share of low-cost deposits decreased to 57.1% due to the launch of a retirement pension time deposit product, which could affect future cost efficiency.
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Treasury management profits decreased by KRW37.2 billion quarter-on-quarter, reflecting challenges in managing market rate fluctuations.
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The loan comparison service segment experienced limited overall growth, indicating potential challenges in expanding this business area.
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SG&A expenses declined by 13% year-on-year, primarily due to a significant reduction in labor costs, which may raise concerns about workforce sustainability.
Q & A Highlights
Q: Can you elaborate on the growth of KakaoBank's customer base and its impact on financial performance? A: Tae Hun Gwon, Chief Financial Officer, explained that KakaoBank's customer base grew by 1.82 million in 2025, reaching a total of 26.7 million customers. This expansion contributed to a 7% increase in operating profit, amounting to KRW649.4 billion. The growth was supported by a 24% rise in deposits and a 9% increase in loans, despite challenging external conditions.
Q: What were the key drivers behind the increase in deposits during the fourth quarter? A: Tae Hun Gwon highlighted that the deposit balance rose by 24% year-on-year, reaching KRW68.3 trillion. This growth was driven by the launch of a retirement pension time deposit product, which led to a significant one-time inflow of savings deposits. Although this reduced the share of low-cost deposits to 57.1%, the overall funding cost improved by 10 basis points quarter-on-quarter.
Q: How did KakaoBank's loan portfolio perform, and what were the main contributors to its growth? A: The CFO noted that the loan balance increased by 9% year-on-year, supported by policy-backed loans and SOHO business loans. The introduction of non-face-to-face Bogeumjari Loans and the growth of the SOHO loan balance by KRW1.2 trillion were significant contributors. The net interest margin improved to 1.94%, driven by a wider net interest spread and lower funding costs.
Q: Could you provide insights into KakaoBank's AI initiatives and their impact on customer engagement? A: Tae Hun Gwon mentioned that KakaoBank launched various AI services in 2025, including AI search, financial calculators, and chatbots. These services were integrated into a unified AI platform with a dedicated tab on the home screen, enhancing convenience and accessibility. The bank aims to evolve into an AI-native institution, delivering value to customers at critical moments.
Q: What are KakaoBank's strategic priorities for 2026 in terms of product and service diversification? A: The CFO stated that KakaoBank plans to manage its portfolio with a focus on the loan-to-deposit ratio and market conditions. The bank aims to diversify its revenue models through products like the Together Loan, which combines interest and fee income. Additionally, the platform business will be strengthened around loan comparison services, investment, and advertising, positioning KakaoBank as a one-stop marketplace for customers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
