Seoul: South Korean internet-only lender K-Bank reported a substantial drop in its first quarter net profit, which fell nearly 70 percent year-on-year due to a decrease in interest income. The bank announced that its net income for the January to March period was 16 billion won (US$11.4 million), a stark contrast to the 50.7 billion won recorded during the same period last year.
According to Yonhap News Agency, K-Bank's interest income for the first quarter was 109 billion won, compared to 136 billion won in the previous year. Despite the decrease in interest income, the bank experienced a 26 percent increase in non-interest income, which rose to 19.7 billion won over the same timeframe.
By the end of March, K-Bank saw a growth in its customer base, totaling 13.63 million, marking a 32 percent increase from the previous year. The bank's deposits and outstanding loans also showed growth, standing at 27.8 trillion won and 16.9 trillion won, respectively. These figures represent increases of 15.9 percent and 14.8 percent from the previous year.