K Bank Q2 net profit ₩68.2 billion, record quarterly high…Non-interest income hits ₩19.7 billion

Korea Economic Daily

Summary

K Bank stated that its net profit for Q2 this year reached ₩68.2 billion, setting a new record for quarterly performance.
While net interest income decreased by ₩25.3 billion, a 16.2% increase in non-interest income helped drive strong results.
Loan-loss expenses also dropped by 26.5%, positively contributing to the strong performance.

K Bank, an internet-only bank, announced on the 13th that it posted a net profit of ₩68.2 billion in the second quarter of this year. This represents a 96.3% increase compared to the same period last year (₩34.7 billion), marking the highest quarterly performance ever.

Net interest income dropped by ₩25.3 billion (19.7%) from ₩128.6 billion in Q2 last year to ₩103.3 billion in Q2 this year. Although the amount of loans increased by 10.8% over the period, profit fell due to worsened profitability from base rate cuts and increased interest expenses paid on KRW deposits from Upbit, Korea's largest cryptocurrency exchange.

In contrast, non-interest income rose by 16.2% from ₩16.9 billion in Q2 last year to ₩19.7 billion in Q2 this year. In addition, loan-loss expenses dropped by 26.5% from ₩56.2 billion to ₩41.3 billion during the same period, further driving the strong results.

Reporter Uijin Jeong justjin@hankyung.com