KakaoBank (323410) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
KakaoBank is an internet-only bank that operates solely through an app with no branches, earning money from net interest income on the gap between deposit and loan rates (net interest margin) and from non-interest income across platform, advertising and partnerships; a distinctive feature is high cost efficiency thanks to a digital structure with low branch and personnel costs. As of end-2025 it had about 26.7 million customers and a loan balance of ₩46.9 trillion, with sole-proprietor loans growing more than 60% in a year to the ₩3 trillion range, and on May 6 it confirmed a record quarterly net profit (₩187.3 billion) for Q1, with its shareholder-return ratio rising to 45.6%. What stands out lately is that its strengths — an overwhelming customer base, a low-cost digital structure, non-interest income that has passed ₩1 trillion a year, and a dividend expansion toward a 50% shareholder-return ratio in 2026 — coexist with the caution that its P/B of 1.60x and P/E of 22.45x are clearly higher than traditional bank holding companies while its ROE (7.1%) is lower, so a growth slowdown could bring the high multiples back as a burden.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Banks” (Financials), a type typically read first through P/B.
Banks earn by putting capital to work through deposits and loans, so what matters is how much equity (net assets) they hold and how efficiently they use it, more than headline profit. That makes price-to-book (P/B) the first lens — but it should be read alongside ROE, which shows how much profit the equity generates.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 4.4% higher than a year earlier.
- ROE is 8.0% (total-net basis). It is above the sector average.
- Operating margin is 20.0%.
- The forward P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Kakao 27.16% (corporate)
Controlling bloc incl. related parties 27.16%
With the controlling bloc holding 27%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
KakaoBank is an internet-only bank that operates solely through an app with no branches. It earns money in two broad ways. First, net interest income, from taking deposits and lending them out as credit loans, jeonse/monthly-rent deposit loans, mortgage loans and sole-proprietor loans, and earning on the rate gap (net interest margin). Second, non-interest income — fee and platform income from loan and investment linkage (platform), advertising, securities-account opening and partnerships. As of end-2025 it had about 26.7 million customers and a loan balance of ₩46.9 trillion; in particular, sole-proprietor loans grew more than 60% in a year to the ₩3 trillion range, becoming a new growth axis. High cost efficiency, thanks to a digital structure with low branch and personnel costs, is the feature that distinguishes it from traditional banks.
The latest close is ₩21,600 and the market capitalization is ₩10.3 trillion. The price sits below its 20-day moving average (₩22,115) and below its 60-day moving average (₩22,237). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.1, a neutral level. The one-month change is -5.5%, the three-month change is -13.6%, and the position relative to the 52-week high is -24.9%. Relative strength versus the KOSPI is 25 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 24% of all stocks. Over the past three months it outpaced the index by 7.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
For a bank, it is more accurate to look at the P/B (how many times book equity the share price is) and the ROE (how much is earned in a year on equity) than at revenue or operating margin. KakaoBank has a P/B of 1.60x and an ROE of 7.1%. For reference, the P/E ratio (how many times one year's net profit the share price is) is 21.46x and the dividend yield is 2.2% (₩460 per share). With equity of ₩6.75 trillion and net profit of ₩480.3 billion, profitability is stable, but the 7.1% ROE is still lower than traditional large bank holding companies (generally 8-10%). That said, the reason the debt-to-equity ratio looks high for a bank with lending assets in the ₩76 trillion range is that deposits count as liabilities in accounting terms, which is different in nature from the borrowing burden of a typical manufacturer.
Profit has risen steadily. Net profit went from ₩354.9 billion in 2023 → ₩440.1 billion in 2024 → ₩480.3 billion in 2025 (+9.1% YoY), setting a record for three straight years, and non-interest income passed ₩1 trillion a year for the first time in 2025 (₩1,088.6 billion, +22.4%). Q1 2026 net profit was ₩187.3 billion, up +36.3% year on year and a record for a quarter, driven largely by non-interest income topping ₩300 billion in a quarter for the first time. That said, operating profit in the same quarter was -13.9% year on year, so it must be read together with the fact that the net-profit surge rode substantially on one-off and non-interest factors beyond the core interest business. The company sees room for 2026 net profit to continue at a scale up in the mid-teens percent from the prior year, given the trend of net growth in loans and customers and the expansion of platform income. Loan balances are rising by several trillion won a year and product lines such as sole-proprietor and auto finance are broadening, so the interest and fee bases are growing together. The company has also set official growth targets: 30 million customers, ₩100 trillion in assets and 20% average annual growth in fee and platform income by 2027, and a 15% ROE by 2030.
Recent disclosures center on results, shareholder returns and management. Expanding shareholder returns is a major axis. The company disclosed a corporate-value-up (value-up) plan for the first time among internet banks and said it would raise its shareholder-return ratio to 50% by 2026. In fact, the shareholder-return ratio has risen every year, at 20.1% in 2023, 38.9% in 2024 and 45.6% in 2025. In April 2026 it confirmed a year-end dividend of ₩460 per share, totaling about ₩219.2 billion. On May 6, a Q1 operating (preliminary) results disclosure confirmed a record quarterly net profit (₩187.3 billion), and on May 15 the quarterly report was submitted. Multiple investor-briefing (IR) notices went up in April and May, showing the company is active in investor communication. There were also personnel- and stake-related disclosures, such as a report on stock-option grants to employees on April 29 and a report on stake changes by executives and major shareholders on June 5.
The strengths are clear: an overwhelming base of 26.7 million customers, a low-cost, branchless digital structure, and having broadened its revenue sources with non-interest income (which topped ₩1 trillion a year) rather than relying on interest alone. With net profit setting records three years running, the direction of growth itself is solid. Add an official plan to raise the shareholder-return ratio to 50% in 2026, and profit growth and dividend expansion are proceeding together. The caution, conversely, is the valuation. A P/B of 1.60x and P/E of 22.45x are clearly higher than traditional bank holding companies (P/B 0.6-1.0x, P/E 7-10x), yet its ROE (7.1%) is lower than theirs. In other words, the current price already embeds substantial growth expectation that 'platform and non-interest income will grow beyond banking.' Accordingly, this stock justifies its premium if customers, non-interest income and sole-proprietor loans grow as planned and ROE rises toward the company's target, but the higher-than-bank multiples can come back as a burden if growth slows.
🔎 Valuation vs peers Overvalued
A comparison of capital profitability (ROE) and price-to-book (P/B) against large domestic bank holding companies. Although KakaoBank is an internet-only bank, its deposit- and loan-based earnings structure makes banking the substantively appropriate comparison.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| KB Financial Group | 10.43x | 1.02x | 10.19% |
| Shinhan Financial Group | 10.25x | 0.85x | 8.64% |
| Hana Financial Group | 9.14x | 0.81x | 9.03% |
| Woori Financial Group | 7.87x | 0.64x | 8.18% |
KakaoBank's P/B of 1.60x and P/E of 22.45x are clearly higher than traditional large bank holding companies (P/B 0.59-0.96x, P/E 6.8-9.7x). Yet its ROE, the capital-profitability metric, is 7.1%, actually lower than theirs (8.6-9.9%). In other words, the current premium is grounded not in present profitability but in the expectation that customers, platform and non-interest income will grow further. That expectation has support: the company has set official targets of 30 million customers and ₩100 trillion in assets by 2027 and a 15% ROE by 2030, and has raised its shareholder-return ratio to 45.6%. A record Q1 2026 net profit continues the growth story too. But given that the net-profit surge leaned substantially on non-interest and one-off factors (operating profit in the same quarter was -13.9%), it is hard to judge on trailing P/E alone, and even on a forward basis the multiple far exceeds the bank average. The growth premium has grounds, but on current metrics alone we judge it to be clearly in a zone that is expensive relative to peers.
Price history Close · MA20 · MA60
The latest close is ₩21,600 and the market capitalization is ₩10.3 trillion. The price sits below its 20-day moving average (₩22,115) and below its 60-day moving average (₩22,237). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.1, a neutral level. The one-month change is -5.5%, the three-month change is -13.6%, and the position relative to the 52-week high is -24.9%. Relative strength versus the KOSPI is 25 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 24% of all stocks. Over the past three months it outpaced the index by 7.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +7.51% / 6M -23.17% / 12M -61.03%
Key metrics Computed vs whole-market median
Valuation
The P/E of 21.46x is above the whole-market median (12.97x). The P/B of 1.56x is above the whole-market median (0.84x).
Profitability & financials
Return on equity (ROE) is 8.0%, above the whole-market average (3.0%). The operating margin is 20.0%. The debt ratio is 1072.5%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.8B | $2.1B | $2.2B | +4.78% ↓ slower |
| Operating profit | $336.1M | $426.3M | $456.2M | +7.00% ↓ slower |
| Net profit | $249.3M | $309.1M | $337.4M | +9.14% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | $1.8B | $2.1B | $2.2B |
| Operating profit | — | — | $336.1M | $426.3M | $456.2M |
| Net profit | — | — | $249.3M | $309.1M | $337.4M |
| Revenue CAGR | 2-yr avg 11.24% | ||||
Revenue rose 4.8% year over year (2023 ₩2.5 trillion → 2024 ₩2.9 trillion → 2025 ₩3.1 trillion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 7.0% year over year. The pace of that profit growth is gradually easing. Over the 3 years on record, revenue compound annual growth (CAGR) is 11.2%. The two-year revenue CAGR is 11.2%. In the most recent quarter (Q1 2026), revenue was 4.4% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Revenue rose 4.8% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2025-11-05FilingCorporate-value-up (value-up) plan disclosed — raise the shareholder-return ratio to 50% by 2026, reach 30 million customers, ₩100 trillion in assets and 20% average annual growth in fee and platform income by 2027, and a 15% ROE by 2030.Medium-to-long term: formalizes shareholder-return expansion and a growth roadmap. A key event underpinning the raising of the payout ratio. Source
- 2026-05-06EarningsQ1 2026 operating (preliminary) results disclosure — net profit of ₩187.3 billion, a record for a quarter (+36.3% YoY). Non-interest income passed ₩300 billion in a quarter for the first time. However, operating profit was -13.9% year on year.Near term: a record net profit re-confirms the growth story. Medium term: with the net-profit surge leaning substantially on non-interest and one-off factors, the core interest-income trend must be read alongside it. Source
- 2026-04-07DividendYear-end dividend decided — ₩460 per share, a total cash dividend of about ₩219.2 billion (FY2025, shareholder-return ratio 45.6%).Near and medium term: confirms continued dividend expansion toward the 50% shareholder-return target. Source
- 2026-05-15FilingQ1 2026 quarterly report submitted — financial details such as loan balances and the makeup of non-interest income confirmed.Medium term: a primary source for checking the loan portfolio and shifts in the non-interest-income share. Source
- 2026-04-29FilingReport on the grant of stock options to employees (correction) — a compensation-related disclosure for attracting and retaining talent.Medium term: a potential future share-count increase (dilution), so the issuance scale and exercise terms are worth checking. Source
- 2026-06-05FilingReport on holdings of specified securities by executives and major shareholders — a filing on stake changes by executives and major shareholders.Medium term: reference material for checking trends in insider stake changes. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-06-05OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-14Disclosure
- 2026-05-08OwnershipOfficers'/major-shareholders' holdings report (amended)
- 2026-05-06EarningsFair-disclosure notice
- 2026-05-04Disclosure
- 2026-04-29Amended filing
- 2026-04-14Disclosure
- 2026-04-07Disclosure
- 2026-04-07Disclosure
- 2026-04-07EarningsEarnings disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.