K Bank, a South Korean Internet-only bank, reported a net profit of 83.6 billion won ($63.6 million) in 2022, which nearly quadrupled compared to the previous year, marking an all-time high. The surge in interest income helped the bank achieve this feat, as net interest income almost doubled from the previous year.
According to K Bank, its net income in 2022 was up 272% from the previous year, which was 22.5 billion won ($17.1 million). The bank continued its top-line growth in 2022 following its first turnaround in 2021. As of the end of last year, K Bank's customer base had increased by about 1.3 million to 8.5 million.
At the end of 2022, K Bank's deposit balance was 14.63 trillion won ($11.1 billion), and the loan balance was 10.77 trillion won ($8.2 billion), representing a 29.2% and 51.9% increase from the previous year, respectively. K Bank's annual net interest income was 385.2 billion won in 2022, a 94.5% increase compared to 198.0 billion won in 2021.
Additionally, the net interest margin (NIM) improved from 1.56% at the end of 2021 to 2.51% at the end of 2022, a 0.95 percentage point increase. K Bank attributed its success to its efforts to expand customer benefits, despite intensifying competition in deposits and a sluggish lending market.
"We will accelerate innovative finance through the launch of new products and inclusive finance through the expansion of low- and medium-credit loans while continuing to grow through preemptive financial soundness control," said Seo Ho-seong, president of K Bank.