Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = The three major internet-only banks have reported their best-ever quarterly performances in the first quarter of this year. This success is attributed to their strategic avoidance of the Hong Kong H-Index equity-linked securities (ELS) issue, a significant risk for the banking sector, and the expansion of loans facilitated by the government's loan refinancing infrastructure. Additionally, the easing of regulations related to loans for mid- to low-credit customers has positively impacted their delinquency rate management.

As of the 3rd, reports indicate that Toss Bank achieved a net profit of KRW 14.8 billion in the first quarter, a remarkable turnaround from a net loss of KRW 28 billion in the same period last year. Kakao Bank reported a net profit of KRW 111.2 billion, and K Bank posted KRW 50.7 billion, both marking their highest first-quarter earnings ever.

The growth in new customers has been equally impressive. K Bank saw an increase of 800,000 new customers, reaching a total of 10.33 million. Kakao Bank added 720,000 new customers, bringing their total to 23.56 million. Toss Bank, the youngest among the three, recorded 9.86 million customers, and surpassed the 10 million mark in April.

The internet-only banks' outstanding performance can be largely attributed to timely strategic moves. The establishment of a loan refinancing infrastructure has led to a rapid increase in secured loans. Furthermore, they have successfully sidestepped the Hong Kong ELS issue that negatively impacted the earnings of traditional banks.

Since the establishment of the loan refinancing infrastructure, the amount of mortgage loans transferred from traditional banks to internet-only banks has reached 572.2 billion KRW. This figure is 1.8 times greater than the combined total of the five major traditional banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup).

By Eun-young Huh(eunyoung114@nspna.com) and Soo-in Kang(sink606@nspna.com)

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