Internet Banks’ ‍Net Profit ⁣Doubles in One Year, ⁣Threatening ⁣Local Banks

The three internet-only‍ banks in‌ South Korea have achieved their best performances ever​ in the first⁣ half of the year, with a combined net‌ profit of 341.3 billion​ won. ​This represents a significant ‍increase from the same period ‍last year, when ⁤the ⁣total net⁤ profit was 170.4 billion won.

Kakao Bank, K Bank, and⁣ Toss Bank have all seen substantial growth in a short ⁢period, posing a threat to​ the ‌country’s leading ⁢local banks. Kakao Bank’s net⁣ profit in the first half of the year was 231.4 billion won, up 25.9%‍ from⁣ the previous‌ year.‍ This‌ figure surpasses that of iM⁤ Bank, which recently converted ​to a commercial bank, and puts Busan Bank, the number one local bank, in ‌its jurisdiction.

K‌ Bank recorded ⁤a net profit of 85.4 billion⁤ won in the ⁣first half of the year, growing by three times compared to the same period ⁣last‍ year. Toss ⁢Bank, the ‌youngest of the three, ⁢posted a‍ net‌ profit of​ 24.5‌ billion ‍won and saw its balance of‍ loans to households exceed 1.5 trillion won, nearly‍ four times the amount at ⁤the⁣ end of ​last year.

Non-Face-to-Face Refinancing​ Platform ​Drives‍ Growth

The internet banks‘ record-breaking performance in ​the first ​half of the year can be ⁣attributed to⁣ their ⁣non-face-to-face refinancing platforms. These platforms⁣ have​ been successful in the non-face-to-face refinancing ‌market due to their interest rate competitiveness.

Kakao Bank has increased⁢ its housing loan balance by about 3.3 trillion ​won this year, with the proportion of⁣ new housing loans handled⁤ by the bank rising to​ 62% ​in the first⁢ quarter after the launch of its non-face-to-face housing loan platform. K⁢ Bank’s apartment mortgage loan‌ balance in the first half​ of the year increased by about 1.7 trillion won, with the refinancing portion accounting for⁢ about 74%.

Non-Interest ‌Income and Customer Growth

The internet banks have also seen significant growth in non-interest income and customer acquisition. Kakao​ Bank’s non-interest⁤ income in ⁣the first‌ half of the year was 270.9 billion⁣ won, ⁣up ⁢19% year-on-year. K Bank’s non-interest income⁢ more than doubled to 32.7 billion⁢ won, while Toss Bank’s‍ non-interest ​income increased by about two-fold​ to 54 billion won.

K Bank and ⁢Toss Bank⁢ have both surpassed 10‌ million customers in the first half of this year through various services utilizing their platforms. The success of these banks has led to speculation ⁤that they may soon overtake⁣ local banks in terms⁤ of market⁤ share.

A financial industry official noted that internet banks are eyeing the position of local ‍banks by taking advantage ⁣of the slowdown in⁣ local bank growth‌ due to the regional economic downturn. The official added that local banks ‍are seeking a way out through collaboration with platform companies, ‍but since the initiative lies with platform ⁤companies,​ it ‍is only a matter of time before ⁤internet banks overtake local banks.