Good morning, and good evening. Thank you all for joining this conference call. Now we will begin the conference call on the fiscal year 2023 third quarter earnings results by KakaoBank. This conference will start with the presentation, followed by a Q&A session. If you have a question, please press star one, that is star and one on your phone during the Q&A. Now, we shall commence the presentation on the fiscal year 2023 third quarter earnings results by KakaoBank.
[Foreign language]
Hello, this is Dianna Kang from KakaoBank's IR team. We will now begin KakaoBank's earnings conference call for the third quarter of 2023. Today, we are joined by members of management, including our CEO, Daniel Yun, Vice President Jay Kim, Sean Kim, our Chief Operating Officer, Conrad Shin, our Chief Technology Officer, Vesper Ko, Chief Strategy Officer, and Mr. Eli Lee, Chief Financial Officer, as well as Lee Ki-joon , Chief Risk Officer. The financial results contained in today's call are preliminary unaudited results based on K-IFRS and may be subject to change upon review by an independent auditor. I will now hand over to Sean Kim, our COO, to present on our third quarter business highlights and financial results. Good morning, this is Sean Kim from KakaoBank.
Thank you to all of our investors and analysts joining us today for our third quarter 2023 earnings call. Let me take you through the key highlight results on page 3. At KakaoBank, we have seen robust portfolio expansion, underpinned by balance growth on both the loan and deposit side, and stable risk management. As of Q3, our loan and deposit balance stands at KRW 37.1 trillion and KRW 45.7 trillion, growing by 9% and 5% respectively, Q-on-Q. Most of the loan growth was driven by mortgage loans for refinancing purposes, with a cumulative balance now standing at KRW 4.3 trillion. Meanwhile, delinquency improved two quarters in a row, recording 0.49%, down by three basis points as of the end of Q3.
Thanks to rigorous risk management and control, we at KakaoBank have been providing consistent supply of mid-credit loans into the market, with a cumulative balance recording KRW 9.6 trillion and mid-credit loans accounting for 28.7% of total credit loans, which is very close to the stated policy target. Together with growth in our business portfolio, our profit base has also become even stronger. Fee and platform revenue grew by 11% Q-on-Q, recording KRW 73.1 billion. Our CIR improved to the 35% level, thanks to appropriate hiring and cost control. NIM also improved for the first time in three quarters, recording 2.31%, up by five basis points Q-on-Q. Next, on to our customer base on page four.
As of the end of Q3, customers totaled 22.28 million, with our MAU increasing slightly from 17.35 million in the second quarter to 17.44 million. Customers were evenly distributed across all age segments, with continued inflow of users in their forties and fifties, with the respective age group penetration increasing to 66% and 42% each.
... 한편, 카카오뱅크는 모임 통장을 비롯한 시그니처 상품을 토대로 고객 기반을 확대하고 있습니다. 모임 통장에 대한 상세 내용은 5페이지를 참고해 주시기 바랍니다.
We have been expanding our customer base consistently, thanks to the strength of our signature lineup of products, including group accounts. Please refer to page 5 for more details on our group accounts products.
6, operating revenue.
Moving on to page 6 for operating revenue.
3분기 영업수익은 전분기 대비 7% 증가한 KRW 6,566억 원을 기록하였습니다. 여신 성장에 따라 이자 수익이 확대되었으며, 체크카드 실적 확대 등으로 피인 플랫폼 수익도 전분기 대비 증가하였습니다. 기타 수익은 예대율 개선에 따라 MMF 등의 운용자산이 축소되면서 전분기 대비 소폭 감소했습니다.
In Q3, we recorded operating revenue of KRW 656.6 billion, up 7% Q-on-Q. Interest revenue grew in line with lending growth, while fee and platform revenue also increased quarter-on-quarter, thanks to strong debit card performance. Meanwhile, other revenue decreased slightly Q-on-Q, as MMF and other investment assets declined as our loan-to-deposit ratio improved.
7 페이지 수신입니다.
On to deposit, page seven.
3분기 수신 잔액은 전분기 대비 5% 증가한 45.7조 원을 기록하였습니다. 저축성 예금 비중은 56.9%로 전분기 대비 소폭 하락하였으나, 은행권 평균 대비 격차는 18.6 퍼센티지 포인트로 더욱 확대되었습니다. 한편, 3분기 자금조달 비용률은 수신 금리 조정의 영향으로 전분기 대비 8 베이시스 포인트 개선된 2.36%를 기록하였습니다.
In Q3, our deposit balance grew 5% quarter-over-quarter to KRW 45.7 trillion. The portion of low cost deposits declined slightly quarter-over-quarter to 56.9%, but our gap versus the banking industry average widened further to 18.6 percentage points. Our funding costs recorded 2.36%, down 8 basis points quarter-over-quarter, following an adjustment to our deposit rates.
8 페이지 여신입니다.
Moving on to page 8 for our loans.
collateral loans. The mid-credit loan proportion recorded 28.7%, up 1 percentage point from the previous quarter, and the third quarter NIM recorded 2.31%, up 5 basis points from the previous quarter, due to a decline in the funding cost rate and an improvement in the loan-to-deposit ratio.
As of the third quarter, our loan balance totaled KRW 37.1 trillion, up 9% from the previous quarter, driven by even growth in all loan segments, including credit and secured. The share of mid-credit loans increased to 28.7%, up 1 percentage point Q-on-Q. Net interest margin in Q3 recorded 2.31%, up 5 basis points Q-on-Q, from a drop in funding costs and improved loan-to-deposit ratio.
다음 페이지에서는 담보대출 실적에 대해 자세히 말씀드리겠습니다.
I will move on to further details on our secured loan performance on the next slide.
구 페이지입니다.
Page nine.
More than half of the mortgage loan balance is for refinancing purposes, contributing to reducing the financial burden of many customers based on convenient user experience and interest rate competitiveness. The Jeonse and Monthly Rent Deposit Loan also expanded the target customer base by launching an SGI guaranteed product in July, and in September opened a refinancing function for customers with new contracts due to moving or renewal contracts where the deposit has increased, supporting more customers to select competitive products.
As of the end of Q3, KakaoBank's mortgage loans, which were launched in February last year, have posted a cumulative balance of KRW 8 trillion, representing 1.4% market share within the banking sector, when based on balance. More than half of the balance was for refinancing purposes, with customers drawn to KakaoBank due to our compelling user convenience and competitive lending rates, which are helping alleviate the financial burden of our users. Last July, we launched our housing deposit loans, guaranteed by SGI, which helped extend the scope of our target customers. Later in September, we started up refinancing services for housing deposit loans for borrowers who need to refinance existing housing deposit loans by moving to a new house or renewing their housing contracts at a higher deposit amount as we seek to offer more competitive options for users to choose from.
10페이지부터는 P2P 및 플랫폼 비즈니스 주요 성과에 대해 말씀드리겠습니다.
Let me move on to our fee platform business highlights starting on page 10.
10 페이지 대출 플랫폼입니다.
Our loan platform on page 10.
target, the market share within the entire financial sector in the third quarter recorded nearly double compared to the previous quarter at 19.5%, demonstrating KakaoBank's platform capabilities and product competitiveness. If the targets for the loan type transfer system are expanded within the year to include mortgage loans and jeonse and monthly rent loans, we expect the influence in the market to increase further.
With the start of the loan refinancing platform initiative in Korea, we launched our new credit loan refinancing service earlier in May. Despite setting a limit on applications by high credit borrowers in consideration of our full year mid-credit loan target, we still recorded third quarter market share of 19.5% within the financial industry, which is nearly double that of the second quarter. This demonstrates the strength of KakaoBank's platform and its underlying capabilities, as well as the competitiveness of our products.... Once the scope of loan products eligible for refinancing, or the refinancing platform extended to cover home mortgage as well as housing deposit loans, we expect our market influence to become even stronger throughout the remainder of the year.
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Page 11, on to our payment services.
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Even as a single product, our Kakao Friends Debit Card has recorded consistent growth in transaction value, exceeding 12% market share as of the end of Q3. We launched our credit card issuance platform, named Credit Card with Best Benefits in September, expanding our business coverage beyond credit card partnerships to encompass the general credit card market. We intend to further expand our presence in the online credit card issuance space by diversifying our lineup of products and providing differentiated services, versus the other platforms.
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Please refer to slide 12 for more details on our investment highlights.
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On to page 13 on our advertising business.
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In the third quarter, our ad revenue recorded KRW 2.4 billion, up 20% Q-on-Q, setting a new quarterly high. We have been testing out different ad types with the goal of diversifying our revenue stream and enhancing business competitiveness. As part of these efforts, we launched an affiliated promotional event in August that users could participate in, which achieved very strong performance. We'll be following up with more diverse initiatives, trying out different ad formats and different ways of using our inventory to further enhance the competitiveness of our platform.
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Page 14, please.
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Yes, please refer to the slide for details on Mini.
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Next, on to SG&A and Cost-Income Ratio, page 15.
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Fifteen.
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In Q3, SG&A recorded KRW 106.8 billion, down slightly Q-on-Q, as one-off costs, including contributions into the four major public insurance schemes, in the second quarter, dissipated. Cumulative CIR was 35.5%, which is a consistent improvement from 43% recorded last year.
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Page 16, operating profit.
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Third quarter operating profit increased by 14% Q-on-Q, reporting KRW 127.5 billion, driven by increase in interest income. ROE and ROA was 6.34% and 0.78% respectively.
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Asset soundness on page 17.
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In Q3, our delinquency and NPL ratio continued to decline, following on the improvement of Q2, thanks to solid loan asset growth and stable risk management. Our credit cost was 0.83%, up 8 basis points quarter-over-quarter, from preemptive additional provisioning done in consideration of the current economic environment. As a result, our loan loss allowance coverage ratio went up quarter-over-quarter, recording 243%.
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Please refer to page 18 for more details on our global business strategy.
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This concludes our financial results and business performance highlights for the third quarter of 2023.
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With that, we'll now move on to the Q&A session. Due to the limited time, we ask that you limit yourself to two questions each.
... 지금부터 질의 응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 일번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 이번을 눌러주시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다. Now Q&A session will begin. Please press star one, that is star and one if you have any questions. Questions will be taken according to the order you pressed star and number one. For cancellation, please press star two, that is star and two on your phone. In order to allow as many clinic chances as possible within the restricted time, we would appreciate only two questions per participant. 처음으로 질문해 주실 분은 골드만삭스 증권의 박신영 님입니다. The first question will be presented by Shin Young Park from Goldman Sachs. Please go ahead with your question.
안녕하세요, 저 골드만삭스 증권의 박신영입니다. 첫 번째로는 이제 그 높은 대출 성장의 지속성에 대한 질문 드리려고 하는데요. 지난 분기에 이어서 이번 분기에도 대출 성장을 높게 유지해 주셨고, 올해 35% 최소 달성은 가능해 보입니다. 헌데 아무래도 그 가계부채의 성장보다는 관리에 좀 중점을 두고 있는 정부의 스탠스 때문에 이 추세를 꾸준히 이어갈 수 있는지에 대한 문의를 많이 받는 편이라서요. 올해 이후에 내년 혹은 중장기로 봤을 때 성장 계획에 대해서 말씀 주시면 좋을 것 같습니다. 두 번째는, 저희가 아무래도 최근에 이제 대주주 변경 가능성에 대해서 언급이 되고 있다 보니까, 기존 영업에 대한 우려를 내비치는 투자자분들도 있으신 것 같아요. 그래서 현 시점에서 카뱅의 상품이나 서비스 중에서, 좀 독점적으로 카카오나 혹은 계열사들의 지원이라든지, 연계되어 있는 부분이 뭔지 확인 부탁드립니다. 감사합니다.
Yes, this is Shin Young Park from Goldman Sachs. Thank you. I will ask two questions. First has to do with the sustainability of your high lending growth. So following on the high growth you saw in the second quarter, you also achieved a high asset growth in Q3, and it does appear that at least 35% full year loan growth may be possible. But given how the government stance is placing greater weight on management of loans versus household loan growth, there are a lot of questions about the sustainability of this kind of high rate of growth. So as you look out beyond this year into the mid to longer term, what are your loan growth plans?
Second, there is talk potentially of a possible change in the largest majority shareholder of KakaoBank, and there are some concerns among investors about how that may potentially impact your business. So in terms of KakaoBank products or services, could you specify which are actually receiving support or otherwise linked to the Kakao Group or any of its affiliates in any kind of a proprietary, exclusive way?
네, 질문 주셔서 감사합니다. 먼저 첫 번째로 질문하신 대출 성장의 지속성에 대해서 답을 드리겠습니다.
Yes, thank you for your questions. Let me take the first one about the sustainability of loan growth.
카카오뱅크의 대출 성장은, 저희의 자금 조달 능력과 직결되어 있다라고 저희는 판단하고 있습니다. 저희는, 시중은행 대비 매우 경쟁력 있는 자금 조달 역량을 보유하고 있어서, 지속적으로 낮은 수준의 조달이 가능하고, 이를 기반으로 아주 경쟁력 있는 대출 금리를 제공할 수 있다라고 판단하고 있습니다.
We believe that our funding capabilities is directly linked to our asset growth. Compared to other commercial banks, we are very capable in terms of our funding capacity, and so we will continue to be able to fund at low cost, thereby being able to provide competitive pricing on our loan products to users.
다음으로 카카오뱅크의 내부 역량을 우선 들여다본다면, 낮은 조달 비용과 더불어서, 상대적으로 높은 BIS 비율을 보유하고 있기 때문에 이로 인해서 자본의, 에, 풀이 상대적으로 높고, 이는 대출 성장에 직결되어 있는, 자본 활용에 있어서, 경쟁 회사와 대비해서 상당히 자유롭다라고 판단하고 있습니다.
So in terms of our internal capabilities, on top of our low funding cost and low funding capacity, we benefit from a relatively higher BIS ratio versus the other competitor banks. And so we have a more extensive capital pool, which of course provides us with the funding capacity or capital capacity to fund our lending growth. And we have much more headroom versus the other competitors or the competitor banks.
그리고 외부로 시선을 돌려봤을 때, 결국 대출 시장은, 순수 신규 참여자로 인한 성장의 폭보다는 결국은 기존에 이미 취급되어 있는 각종 유형의 대출의 롤오버라든가, 만기 도래분에 대한, 시장을 누가 확보냐, 확보하느냐가 훨씬 더 중요한 관건이라고 이해가 됩니다.
On the external side, when you look at the overall loan market, a bigger driver of loan growth is actually the existing lending space. So new growth comes more so not from purely new participants into the market, but from a rollover of existing loans that reach maturity. So who actually captures and can tap this part of the market is actually very critical in terms of market dynamics.
... 그래서 저희가 판단하기로는, 금년에도 그런 유사한 접근이 매우 효과적이었다고 저희는 생각을 하고 있는데, 결국 카카오뱅크는 내부에 역량을 집중해서, 경쟁 회사가 이미 가지고 있는 대출 시장의 상당 부분을 카카오뱅크로 이동시킬 수 있는 역량이 있다라고 보고 있어서 종래적으로, 중장기적으로도, 마켓 애버리지를 훨씬 상회하는 수준의 대출 성장을 지속해 낼 수 있다고 생각을 합니다.
So, we believe that by building on our internal capabilities, we are capable of actually winning over a great part of the existing lending market that is previously occupied or held by the competitors. Based on that kind of strong capacity, we believe that we can sustain high levels of loan asset growth above the market average in the mid to long term. This type of approach actually served or proved to be quite effective this year.
이는 실제로도, 각종 대출의 이동제가, 확대되는 현재의 추세로 보았을 때, 가계대출의 전체 총량이 현재 수준에서 굉장히 제한적인 성장을 하는 환경에서도 여전히 유효한 수단을 카카오뱅크는 가지고 있다라고 판단하고 있습니다.
Given how the scope of loan products that will be eligible for the refinancing platform is being expanded, we think that with limited upside in terms of how far household loans can grow further, still, we think that this gives us a very effective tool to continue to drive lending growth for KakaoBank.
다음으로 두 번째 질문에 대한 답을 드리겠습니다.
Moving on to your second question.
it began its business, has continued to grow as a separate app from KakaoTalk.
As you know, since launch of our business, we have actually continued to achieve sustainable growth as an independent app, separate and distinct from KakaoTalk.
그래서 저희는 현재, 별도로 저희가 생각해 볼 수 있는 영업에 대한 우려나, 이런 걱정은, 저희가 가지고 있는 바가 없고요.
which is why at present, we do not have any worries or concerns about potential impact to our business.
그리고 카카오톡뿐만 아니라, 시장 내 있는 다양한 플레이어들과 카카오뱅크는 늘 열린 마음으로 다양한 형태의 제휴를, 생각하고 있기 때문에, 향후에도 특별한 큰 지장을 받지 않고, 영업을 지속해 나갈 수 있다라고 생각하고 있습니다.
And not just KakaoTalk, but in fact, we are always open-minded in engaging with many different market players in different parts of the market through diverse partnerships and alliances. And we are confident that we will be able to continue to run consistent business without setback.
다음 질문 받겠습니다. 다음으로 질문해 주실 분은 대신증권의 박혜진님입니다. The next question will be presented by Hyejin Park from Daishin Securities. Please go ahead with your question.
네, 안녕하세요. 질문 기회 주셔서 감사합니다. 저는 두 가지 질문이 있는데요. 첫 번째는 저희 NIM 상승이 인상적입니다. 저희가 수신을 선제적으로 모집한 면이 있어서 사실 앞으로는 여신 성장만 하시면 될 것 같은데, 혹시 사 분기나 내년 상반기까지 NIM 전망을 공유해 주시면 감사할 것 같고요. 두 번째는 상품 관련 질문인데, 구 페이지에 전월세 보증금 대출 갈아타기를 오픈했다고 하셨습니다. 근데 이게 타 은행이랑 비교 가능해서, 전세 대출에 대해서 대환대출이 가능한 플랫폼인지, 관련해서 설명해 주시면 감사할 것 같습니다.
Yeah, thank you for the opportunity to ask two questions. First, regarding your NIM, I think the improvement is quite impressive. I think it's thanks in some part to your preemptive funding efforts to increase your deposit size first. It seems that going forward, it will be just a matter of growing your loans. So what is your NIM outlook for the remainder of the year for the fourth quarter and also first half of next year? Second, I have a question on one of your products. On page nine, you mentioned that you have launched a refinancing platform for your housing deposit loans. So could you explain what kind of offering it is, especially in comparison with similar offers by other banks?
첫 번째 질문 NIM에 대한 답변을 우선 드리도록 하겠습니다.
Okay, let me address your first question on NIM.
사실 금리나 환율과 같은 거시경제 변수에 대한 전망은 대단히 어렵다라는 것을, 모두가 다 알고 계실 거라고 생각합니다.
Actually, I think everybody will appreciate just how hard it is to forecast what exactly will happen to macro economic factors like interest rates or FX rates.
외부적인 환경에 대해서 저희가 판단하는 바는 현재의 고금리 상황이 상대적으로, 좀 더 장기간 지속될 가능성이, 상반기에 비해서 지금 하반기 들어서는 굉장히 높아진 상태라고 이해하고 있습니다.
So in terms of looking at the external environment, I think as we, as we stand now, there is much higher likelihood, as of the second half of this year versus the first half, that higher interest rate levels, may remain at higher levels for longer. And also in relative terms, I think there is now greater uncertainty about the overall directionality of market liquidity. But when we look internally, as you mentioned, we actually were good about preemptively building up our deposit on the funding side. So it is now substantial and, significant enough to back, sufficient loan growth. And we have actually been increasing our customer base, consistently, and launch of our recent new product, the One-Month Installment Savings product, among other signature products, actually has been very well received by the market.
Against that backdrop, by stably managing down our funding costs, and our loan to deposit ratio further, we still think that there can be room for a slight improvement, further improvement in our NIM. Then your second question regarding our housing deposit loan refinancing. So originally, the housing deposit loan product that we offered were new originations. So they were when we actually provided the new loan issue ourselves. And so, for a practical purpose, it was, it would be difficult for a borrower who already had a housing deposit loan from another financial institution to refinance that loan on KakaoBank by switching over to our housing deposit loan.
Even if the user had received the original housing deposit loan from us, KakaoBank, if, for example, upon renewal of the housing rental contract, there was an increase in the deposit amount, that could also have been restrictive, and this user may not have been able to refinance the loan on KakaoBank. So the purpose behind the launch of refinancing services actually was to alleviate this type of inconvenience on the consumer side by improving some of the product features. But more so than we expected actually, the product improvements actually have resulted in a significant increase in the size or in the numbers.
So although, technically it's not altogether new product on its own, as it is an improvement on an existing offer, still, our internal calculations suggest that, this type of improvement can actually add, 60 billion, KRW 60 billion in monthly performance to our, to our bottom line.
The next question will be presented by Jaeha Kim from Hanwha Investment & Securities. Please go ahead with your question.
... 저희가 이번 분기 수신이 그래도 급속으로 온라인으로 늘어나고, 와중에 저원가성 비중은 소폭 줄어들어가고 있기 때문에 대출 쪽에서는 포트 변화라고 이해하면 될 텐데, 조달 쪽에서 어떤 요인 때문에 비용률들이 이렇게 하락하게 된 건지 좀 말씀 주시면 감사하겠습니다. 이제 앞서 발표한 시중은행들 같은 경우는 스프레드가 빠지게 된 원인이 대출 수익률도 조금은 올랐지만 조달 비용률이 더 많이 올라서였는데, 저희는 다른 방향성이기 때문에 여쭙는 거고요. 이제 저원가성 수신 내에서 세이프박스 같은 것들도 있고, 이 안에서의 믹스를 저희가 알 수가 없어서 혹시 어떤 요인 때문인지 수치적으로 좀 말씀 주시면 감사하겠습니다.
Yes, I would like to ask some questions to clarify some of the numbers. So you said that, as a countercyclical preemptive measure, you set aside additional provisioning in advance. So how much did you do in the third quarter, exactly? And, I also have some questions about the numbers. I understand that the improvement to your loan deposit ratio led to improved margin. When you look on the spread, at the spread, the loan side, actually, there may have been a mixed change, but overall there was a movement of 28 basis points down. On the deposit side, I think it was also down by 10 basis points or so.
So my question is: if you look at other commercial banks, they also saw a decline in spread, because their funding ratio increased by a greater margin versus the lending rates. So what is the reason, or the breakdown in the case of KakaoBank, the reason for the decline in the cost on the funding or the deposit side? Could you explain?
네, 두 가지 질문으로 이해를 했습니다. 하나는 충당금에 관한 질문이 있었고, 두 번째는 수신 조달 비용에 관한 질문인데요. 먼저 그 충당금 적립에 관한 말씀을 드리도록 하겠습니다.
I believe, there were two questions, one about our additional provisioning, and then second, regarding our funding cost structure.
네, 저희가 3분기에 추가적으로, 선제적인 그 충당금 전입을 약 150억 원 정도로 했습니다. 그래서 소위 그 온오프성 충당금 적립액이 150억 원인데요. 이는 카카오뱅크는 업력 자체가 그렇게 길지 않아서, 소위 장기 부도율에 대한 데이터가 내부적으로 갖추어져 있지 않은데, 시장 데이터를 가지고 저희가 일정 부분 보완을 하고 있었는데요. 이번에는 금융감독원과의 협의를 통해서 그, 채택되어지는 장기의 분석 대상 기간이 10년으로 확대하면서, 그 추가적인 충당금 전입액이 적절해 보인다라고 판단을 하게 되었습니다.
First, regarding the additional provisioning, the amount for the third quarter actually was KRW 15 billion. That is a one-off of additional provisioning for the third quarter, again, of KRW 15 billion. Because we do not have a very long business history, we did not have internal data on long-term probability of default, which is why we supplemented by using available market data. Upon discussions with the FSS, it was viewed that the timeframe for analysis should be extended up to 10 years. And on that basis, we felt that additional provisioning at the said amount was adequate.
다음으로, 수신 조달 비용에 대해서 말씀드리겠습니다.
And then regarding the funding cost.
수신의 경우에는 여신과의 그런, 적정 수준의 예대율이라든가, 이런 것들을 저희가 고려해서, 조달 비용이나, 이런 부분을 결정하게 되는데요. 이번 분기의 경우에는 크게 두 가지 고려 사항이 있었습니다.
So of course, funding cost is a function of different metrics, like our loan to deposit ratio. The factors on both the loan and deposit side, matter. For the third quarter, there were actually two factors that were reflected.
첫 번째는 정기 예적금 금리입니다. 카카오뱅크는, 이 분기 말에, 구 예대율 기준으로, 78% 정도의 예대율을 보이고 있었고, 당시에 여신보다 수신 규모가 구조상 더 컸습니다.
First, the first metric is the long-term rate on our... Excuse me.
정기예금, 적금. 정기예금과 정기적금.
So the long term, the rate on our long-term savings and installment savings products. So as of the end of the second quarter, based on the old, loan to deposit ratio scheme, our, LDR actually was 78%, and at that time, our, deposits actually, were—well, we had KRW 9 trillion more in deposits versus lending.
그래서 3분기에 시중은행 간 수신 경쟁이 있었을 때, 카카오뱅크는 상대적으로 자유로울 수 있었고, 예적금 금리가 시중은행의 최고 수준에 비해서는 0.2%, 약 20, 15-20 percentage points 정도 낮게 유지될 수가 있었습니다.
And so during the third quarter, when there was intense competition over deposits among the commercial banks, we were actually relatively freer from the competition, with our rates on savings accounts, installment savings about 0.2% lower in comparison. So that's about 15-20 basis points lower.
다음으로 수시 입출식에서 또 질문하신 세이프 박스의 금리 조정도 있었는데요. 세이프 박스와 같은 수시 입출식의 경우에는 저희는 듀레이션 미스매칭이라든가, 그다음에 경쟁 회사의 제공 수신 금리 등을 고려해서 의사결정을 하고 있습니다.
As you suggested, yes, there was some adjustment to the interest rates for our checking account type products, including Safeb ox. And so that is determined actually in consideration of different factors, including duration, mismatch, and the type of deposit rate offered by our competitor banks.
이 두 가지의 조정으로 인해서 수신이 보다 경쟁적인 낮은 금리에서 조달 가능했다라고 설명드릴 수 있습니다.
So it's a combined effect of both factors that allowed us to do lower cost funding on the deposit side.
다음 질문 받겠습니다. 다음으로 질문해 주실 분은 NH 투자증권의 정준섭 님입니다. The next question will be presented by Jun-Sup Jung from NH Investment & Securities. Please go ahead with your question.
네. 안녕하세요, NH 투자증권 정준섭입니다. 질문해 주셔서 감사합니다. 저도 2가지 질문드리고 싶은데, 둘 다 사실 앞서서 말씀 답변 주신 거에 대해 연계된 부분일 것 같습니다. 첫 번째는 이제 대환대출 플랫폼 관련된 건데요, 정부 주도로 하는 대환대출 플랫폼. 하반 올해 연말이나 내년 초에 뭐 전세자금에서 이제 주택담보까지 좀 확대되는 것으로 알고 있습니다. 지금 현재 어느 정도 좀 스케줄이 구체화되어 있는지, 여기에 대해서 한번 공유 부탁드리겠습니다. 두 번째는 이제 충당금 쪽 전망인데요. 이제 이번 3분기는 이제 충당금 부분, 이런 게 있었다 말씀 주셨는데, 혹시 4분기랑 그리고 내년 전망을 좀 어떻게 보시는지가 궁금합니다. 아무래도 대출 잔고가 늘었으니까 이제 적립액 규모 자체는 증가하겠지만, 반대로 크레딧 코스트는 좀 낮아질 것 같다라고 예상이 되는데, 내부적으로 어떻게 보시는지 전망 공유 부탁드리겠습니다.
Yes, this is Jun-Sup Jung from NH Investment & Securities. Thank you. I will also ask two questions, and these may actually be connected to previous questions, by the way. First, regarding the government-led refinancing platform, it is understood that toward the end of this year or early next year, the scope of loan products that can use the refinancing platform will be extended to also cover housing deposit loans, also home mortgage loans. So to what degree is the schedule firmed out, if you know? Second question regarding provisioning. I'd like to hear more about your outlook for the fourth quarter and also next year in terms of how much provisioning you think is likely to be needed.
As you increase your loan book, I would imagine that the absolute amount of reserves may increase, while your credit cost goes down. But what is the internal view?
네, 그 먼저 대환대출 플랫폼의 준비와 관련한 말씀을 드리겠습니다.
First, let me answer how we are preparing for the refinancing platform.
이 논의가 시작된 이후로 카카오뱅크는 내부에 준비를 긴밀하게 진행하고 있었고, 저희 내부 사정만 말씀드리면, 연내에 저희는 실행 준비를 완료할 수 있을 거라고 판단하고 있습니다.
Actually, ever since the initial discussions began, we at KakaoBank have been preparing quite tightly ahead of the launch. Just as far as we at KakaoBank are concerned, we believe that we should be ready to finish executing on the full preparation phase within this year.
그렇지만 이는 대단히 중요한 제도의 변화이기 때문에, 금융당국 차원에서 타행의 준비 상황이라든가, 적절한 출시 시점을 고민해서, 일괄된 커뮤니케이션을 진행하실 것이라서, 구체적인 대 고객 서비스의 출시 시점에 대해서는 저희가 말씀드리기 어렵습니다.
However, as this does represent a major change to an important piece of regulation, I think the financial regulatory authorities will be considering the readiness of the other banks as well, as they deliberate on the exact timing of launch. And I think, when everything is decided, then they will provide a singular communication. And so as to when exactly user-facing services will be launched, it is hard for us to say.
다음으로 충당금 전망에 대해서 말씀을 드리겠습니다.
And then, moving on to our outlook for provisioning.
이전에 있었던 NIM과 관련한 질문에서도 말씀드린 것처럼, 결국은 금리와 같은 경제 환경이 가장 예측하기 어려운 불확실성을 담고 있어서 정확한 전망은 어렵습니다.
As I explained in the previous answer to the question about NIM, again, it is very difficult to forecast what exactly will happen to the macro environment, including interest rates, given the embedded uncertainties.
그러한 환경을 고려했을 때, 저희는 최종적인 영업이익이나 당기순이익을 키우는 방향보다는 충분한 수준의 손실을 버퍼가 준비되어 있어야 된다라고 판단하고 있습니다.
KakaoBank의 포트폴리오는 시중은행 대비 아직도 신용대출의 비중이 상대적으로 높기 때문에, 사 분기에도 다소 보수적인 기조로 충분한 수준의 충당금을 전입하고자 하는 목표를 가지고 있습니다.
So, because relative to the other commercial banks, the percentage of credit loans, as a share of our total portfolio is still larger, we intend to continue to maintain a conservative stance in the fourth quarter as well, to make sure that we set aside sufficient provisioning. However, as we explained at the last conference call, based on our internal monitoring, we have observed a slowdown in the increase of delinquency rates for our credit loans.
So that being the case, our cautious view is that starting in the first half of next year, loan loss allowance coverage or the increase in that, the provisioning may slow down again, starting first half of next year.
The next question will be presented by Ji Hyun Jo from JP Morgan Securities. Please go ahead with your question.
[Foreign language]
Yes, this is Ji Hyun from JP Morgan Securities. I would also like to ask some related questions. So obviously, the regulatory environment overall, especially regarding management of debt, is not very easy at the moment. But it seems that because you have different strengths, including price competitiveness and strong capital position, you are in a very strong, you are on strong track to continue market share gain.
But after, the stance by the authorities have been tightened, what kind of trends have you seen in terms of your loan growth in the months, say, from July, August, September? The pace of growth always has been above industry growth, but what kind of trends have you seen since July? And for full year, I think you will obviously be able to achieve the 35% target, but could you provide further guidance on the exact level of loan growth you foresee for the fourth quarter this year and also next year? Second question regarding the Kakao Group related issue. So, I understand, and we've been hearing that review by regulatory actually is being delayed for certain, you know, new business initiatives.
For example, you know, your plans to move into the credit card market, MyData and other new business areas may be experiencing a bit of a postponement. So if things are put off more than expected, then how do you intend to respond, and how will you reinforce your fee and platform side of the business?
So those are two very difficult questions. Let me take the first one. So regarding our loan growth, for the fourth quarter, I think at the last conference call, we did specify that into the second half of this year, we are looking at, at minimum 35% or above loan growth, for the second half. But, to achieve that goal, I think, the most important thing is to engage with the authorities in very close discussions and consultations. So whether it pertains to an aggregate cap on household loans or whatever it may be, we have to consult with the authorities very closely so that we can draw a growth curve.
... received, and that is seen as acceptable within, the market.
Oh.
And even in that context, and even in that type of direction, we still believe that we can continue to achieve loan growth into the fourth quarter. And we are still in the process of working on our business plan for 2024. So as we did earlier this year, as soon as that is finalized, we will prepare for some kind of information sharing session early next year to share our plan. And then, regarding new business areas, including credit card or MyData. We have set some directions for these new businesses. So our basic position regarding these types of businesses and related licenses, we do think that they will ultimately or they are businesses that we ultimately have to move into. It's just a matter of time.
So to the extent that we can, work on preparations, we will continue, to progress. Even for the check card product, we still think there is room to further improve on its usability, and also various system upgrades will continue to be required. Ultimately, we are exploring from a multi-angle perspective on how we can boost the experience to be comparable with the credit card. For MyData, even if we did not outright obtain a direct license for MyData, we do still believe that we need to approach data analytics, also continue to build up our data analytics capabilities for our user-facing services. So data analytics and that kind of modeling will continue to be a focus.
And there are, of course, different sources of data that can be obtained, as a direct license holder of MyData, and also even in the event that we do not hold a direct license. There is the public sphere, MyData scheme. Also, we're just now starting to hear about Pure Play MyData, and through non-identified or pseudonymized information combinations, we can also come up with different types of data sources from different sectors and potentially identify serviceable areas. So, we actually will continue in parallel to seek out new business licenses where possible, where there are no legal constraints. So, we will continue to obtain licensing to provide different types of financial services that are needed and required for our consumers and users. Yes.
With that, we'll now conclude the third quarter conference call for KakaoBank. I'd like to thank all analysts, investors, and members of the media for joining us. Thank you.