Kbank (279570)

As an internet-only bank, the Bank pursues a variety of contactless-based deposit/lending and platform businesses. Going beyond simply digitizing banking operations, it provides greater benefits and enjoyment based on technologies such as AI, Big Data, and Cloud, and simplifies complex procedures to maximize customer convenience. In addition, based on diverse partnerships, it provides a differentiated customer experience through affiliated services across all areas of daily life, including telecommunications, securities, and virtual assets. The Bank will continue to evolve into a financial platform that provides more innovative and stable services. 2. Business Status a. Business overview The Bank began operations in April 2017 as Korea's first internet-only bank and, based on digitalization, provides a variety of products and services that allow customers to save, borrow, and grow their money. In addition to basic deposit and installment savings products, it has launched the Living Account, Plus Box, and Challenge Box, which offer a differentiated customer experience, benefits, and convenience, and provides products such as 100% contactless credit loans, mortgage loans, and individual business owner loans. Beyond these, it strives to enable more customers to enjoy its benefits and convenience through auto loans, stock accounts, credit cards, and investment services. The Bank plans to continue evolving into a digital financial platform that provides reasonable and practical solutions. b. Types of business (1) Banking operations and incidental operations under the Banking Act (2) Other operations may be conducted concurrently with authorization from the authorizing party under relevant laws and regulations c. Status of funding and operations (Unit: KRW 100 million, %) Category / 10th term / 9th term / 8th term, each showing average balance, interest amount, and interest rate; for funding, amount and composition ratio. Funding - KRW funds: Deposits (Note 1): 270,409 (90.91), interest 6,821.34, rate 2.52 / 215,559 (89.70), 5,872.86, 2.72 / 162,520 (87.80), 4,519.91, 2.78 CD: none across all periods Borrowings: none across all periods KRW call money: none / 1 (0.00), 0.02, 3.47 / none Other: 454 (0.15), 11.36, 2.50 / none / none Subtotal: 270,863 (91.07), 6,832.70, 2.52 / 215,560 (89.70), 5,872.88, 2.72 / 162,520 (87.80), 4,519.91, 2.78 Foreign currency funds (FX deposits, FX borrowings, FX call money, bonds, other, subtotal): none across all periods Cost-bearing funds total: 270,863 (91.07), 6,832.70, 2.52 / 215,560 (89.70), 5,872.88, 2.72 / 162,520 (87.80), 4,519.91, 2.78 Other: Total equity: 22,321 (7.50) / 21,036 (8.75) / 19,585 (10.58) Provisions: 75 (0.03) / 96 (0.04) / 22 (0.01) Other: 4,174 (1.40), 41.71, 1.00 / 3,620 (1.51), 26.86, 0.74 / 2,975 (1.61), 21.13, 0.71 Non-cost-bearing funds total: 26,570 (8.93), 41.71, 0.16 / 24,752 (10.30), 26.86, 0.11 / 22,582 (12.20), 21.13, 0.09 Total funding: 297,433 (100.00), 6,874.41, 2.31 / 240,312 (100.00), 5,899.74, 2.46 / 185,102 (100.00), 4,541.04, 2.45 Operations - KRW funds: Deposits with banks (Note 2): 1,403 (0.47), 39.35, 2.80 / 439 (0.18), 15.62, 3.56 / 120 (0.07), 4.27, 3.55 Securities: 83,765 (28.16), 2,495.25, 2.98 / 55,764 (23.20), 2,053.54, 3.68 / 48,510 (26.21), 1,289.05, 2.66 Loans (Note 3): 174,319 (58.61), 7,897.63, 4.53 / 154,954 (64.48), 7,803.67, 5.04 / 124,372 (67.19), 7,263.49, 5.84 (Household loans): 157,931 (53.10), 7,191.21, 4.55 / 144,412 (60.09), 7,263.51, 5.03 / 119,017 (64.30), 6,965.17, 5.85 (Corporate loans): 16,388 (5.51), 706.42, 4.31 / 10,542 (4.39), 540.16, 5.12 / 5,355 (2.89), 298.32, 5.57 Payment-guarantee advances: none across all periods KRW call loans: 303 (0.10), 10.04, 3.32 / 259 (0.11), 8.88, 3.43 / 522 (0.28), 18.15, 3.48 Private bonds, credit card receivables, (card loans): none across all periods Other: 35,178 (11.83), 958.01, 2.72 / 27,398 (11.41), 942.59, 3.44 / 10,220 (5.52), 372.02, 3.64 KRW loan-loss allowance (-) (Note 4): -2,934 (-0.99) / -3,145 (-1.31) / -2,222 (-1.20) Subtotal: 292,034 (98.18), 11,400.28, 3.90 / 235,669 (98.07), 10,824.30, 4.59 / 181,522 (98.07), 8,946.98, 4.93 Foreign currency funds (FX deposits with banks, FX securities, loans, FX call loans, purchased FX, other, FX loan-loss allowance, subtotal): none across all periods Profit-earning funds total: 292,034 (98.18), 11,400.28, 3.90 / 235,669 (98.07), 10,824.30, 4.59 / 181,522 (98.07), 8,946.98, 4.93 Other: Cash: none across all periods Business-use tangible assets: 470 (0.16) / 381 (0.16) / 347 (0.19) Other: 4,929 (1.66), 40.69, 0.83 / 4,262 (1.77), 34.45, 0.81 / 3,233 (1.74), 22.05, 0.68 Non-earning funds total: 5,399 (1.82), 40.69, 0.75 / 4,643 (1.93), 34.45, 0.74 / 3,580 (1.93), 22.05, 0.62 Total operations: 297,433 (100.00), 11,440.97, 3.85 / 240,312 (100.00), 10,858.75, 4.52 / 185,102 (100.00), 8,969.03, 4.85 Note 1) Deposits = KRW deposits - other-bank deposit instruments - reserve deposits - inter-bank adjustment funds (call loans). The interest used to derive the deposit interest rate is the sum of deposit and installment interest and deposit insurance premiums. Note 2) Deposits with banks = KRW deposits with banks - reserve deposits. Note 3) The interest used to derive the loan interest rate is KRW loan interest less contributions to the Korea Credit Guarantee Fund, etc. Note 4) KRW and FX loan-loss allowances are shown as deductions from the operations segment. d. Operating results by segment (1) Operating results (Unit: KRW 100 million) Category / 10th term / 9th term / 8th term Pre-provision income (A): 3,310 / 3,864 / 3,134 Provision charges (B): 2,182 / 2,566 / 2,987 Bad debt expense: 2,133 / 2,498 / 2,836 Payment-guarantee provisions: none Retirement benefits: 49 / 41 / 35 Unused commitment provisions: none / none / 91 Other provisions: 1 / 27 / 25 Provision reversals (C): 8 / 30 / 1 Loan-loss allowance: 0 / 2 / none Payment-guarantee provisions: none Unused commitment provisions: 7 / 27 / none Other provisions: 0 / 1 / 1 Income tax expense (D): 10 / 47 / 20 Net income (A-B+C-D): 1,126 / 1,281 / 128 Required transfer to (reversal from) loan-loss reserve: 132 / (23) / (218) Net income after loan-loss reserve: 994 / 1,304 / 346 (2) Profitability indicators (Unit: %) Category / 10th term / 9th term / 8th term Return on assets (ROA): 0.36 / 0.51 / 0.07 Return on equity (ROE): 5.26 / 6.51 / 0.69 KRW deposit-loan interest spread (A-B)...