K Bank, an internet-focused bank, saw its net profit decrease by more than 10% last year. This was mainly due to the increase in interest rates on virtual asset deposits.
K Bank announced on the 23rd that its net profit for the year 2025 is 112.6 billion won, a decrease of 12.1% year-on-year. The main reason for this is a 7.8% decrease in interest income. This is due to the rise in virtual asset deposit rates since mid-2024, leading to a reduction in interest income.
Nevertheless, non-interest income reached 113.3 billion won, an increase of approximately 40%. This was contributed by gains from bond sales, money market fund (MMF) management income, and platform advertising revenue. The growth in non-interest income demonstrates the diversification of K Bank's revenue structure.
On the other hand, as of the end of last year, K Bank's deposit balance was 28.43 trillion won, a slight decrease. Analysts believe this was due to the shrinking asset market and a reduction in virtual asset deposits. However, the loan balance increased to 18.38 trillion won, a year-on-year increase of 13%, with a particularly sharp increase in loans to individual businesses. The proportion of low- and medium-credit loans also exceeded regulatory standards, reaching 33.7%.
Going forward, K Bank plans to expand its customer base and strengthen its growth momentum in areas such as its platform, corporate lending, artificial intelligence (AI), and digital assets. The bank's president emphasized that these efforts will be a new leap forward for K Bank. This trend could be a crucial turning point in how K Bank establishes itself in the digital finance market.
