KakaoBank (323410) investor relations material

Executive summary

• Achieved record net profit of KRW 187.3 billion in Q1 2026, up 36% YoY, driven by customer base expansion, strong global business performance, and robust growth in net interest income and fee & commission profit.

• Customer base reached 27.27 million (+570,000 YTD), with MAU and WAU at all-time highs.

Financial highlights

• Operating revenue rose 4% YoY to KRW 819.3 billion, led by 9.5% YoY growth in interest income; net interest income increased 15% YoY to KRW 373.4 billion; fee & commission profit up 47% YoY to KRW 20.0 billion.

• Deposit balance increased 15% YoY to KRW 69.4 trillion; loan balance up 8% YoY to KRW 47.7 trillion.

• Net interest margin improved by 6 bps QoQ to 2.16% due to higher loan yields and lower funding costs.

• CIR improved to 30.6% due to one-off non-operating income; normalized CIR at 35.9%; reported CIR at 36.9% in 1Q26.

• Non-operating income surged to KRW 93.8 billion, mainly from investment returns.

Outlook and guidance

• Plans to expand shareholder return to 50% by 2026, with DPS as the main metric from 2027.

• SG&A growth to be controlled within 10% for 2026, with IT and D&A expenses possibly rising 40%+ YoY; headcount increase for 2026 to be under 100, focused on essential tech and operational roles.

• Continued investment in AI, infrastructure, and new product launches, including services for foreign nationals and platform enhancements.

• Continued focus on expanding digital banking services and global partnerships.