Korea’s top app lender Kbank posts first annual surplus in 2021
South Korea’s first online-only bank, Kbank Corp., posted an annual surplus for the first time since its founding in 2016 thanks to the boom in leveraged asset investments and its partnership with China’s largest stock exchange. country cryptography.
Kbank said on Thursday it posted a net profit of 22.4 billion won ($18.6 million) last year. Kbank posted a net loss of 105.4 billion won in 2020 but went black last year as its customer base more than tripled after opening accounts for crypto trading.
Kbank added 5 million new subscribers last year, serving a total of 7.17 million customers at the end of last year.
Its deposit balance rose to 11.32 trillion won at the end of last year from 3.7 trillion won the previous year. During the same period, the loan balance increased from 2.99 trillion won to 7.9 trillion won.
Net interest expense income jumped 327% to 198 billion won. Kbank raised 19.6 billion won in non-interest earnings last year, following a loss of 10.2 billion won in 2020 thanks to its bank account partnership with the country’s largest crypto exchange, Upbit.
Kbank said its profitability has also improved thanks to savings account services such as “Plus Box” and “Challenge Box” which accounted for 80% of low cost funds (LCF) last year.
Mortgages for apartments crossed the 1 trillion won mark less than a year after their launch, while the amount of home loans for young people exceeded 200 billion won in four months of service. Loans to customers in the mid to low level credit group also increased 2.3x from 2020 last year.
The cost-income ratio (CIR) which exceeded 300% plunged to 61%. A lower reading reflects the efficiency of the bank.
The first app lender which is far behind rival Kakao Bank hopes to go ahead with its IPO this year.
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]