Good morning and good evening. Thank you all for joining this conference call. Now we'll begin the conference of the fiscal year 2023 Q1 earnings results by KakaoBank. This conference will start with a presentation followed by a divisional 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 Q1 earnings results by KakaoBank. Hello, this is Diana Kang from KakaoBank's IR team. We will now begin KakaoBank's earnings call for the Q1 of 2023. We are joined by members of management today, including our CEO, Daniel Yoon, Vice President Jay Kim, Seok Kim, our Chief Operating Officer, Jae-Hong Shin, our Chief Technology Officer, and Ko Jung-hee, Chief Strategy Officer.
I'll now hand over to Sean Kim, our COO, to present our Q1 business highlights and financial results. Good morning, this is Sean Kim from KakaoBank. Thanks to all the investors and analysts joining us today for our first quarter 2023 earnings conference. Let me now take you through the key highlight results for Q1 on page three. In 2023, KakaoBank has been moving forward under the goal of growing our operating profit and strengthening the influence of our platform. In the Q1 , we posted record high operating profit of KRW 136.4 billion, driven by above market average loan growth. Our credit loan balance returned to growth with a turnaround to a net increase for the first time in six quarters.
Our mortgage loan balance recorded KRW 2.4 trillion one year after launch, despite the slowdown in the real estate market. The influential power of our platform is becoming stronger, driven by our growing customer base and increase in traffic. We continue to see inflow of new customers who are drawn to signature products such as Group Account, as we gain growing presence in people's daily lives when making payments or fund transfers. Among new customers acquired in Q1, 49% are using our Group Account with our market share in debit cards and number of transfers also setting new records quarter-on-quarter. Our mini accounts for teenagers has also seen a boost in traffic with our T-money top up service, which was launched in the fourth quarter last year, offering greater usability to users in their everyday context. On to our customer base on page 4.
As of the end of Q1, number of customers totaled 21.18 million, as we achieved an MAU of 16.35 million. Customers were evenly spread out across all age groups, with our penetration in the working age population reaching 73%, which is eight percentage points higher year-on-year. Next, on to our customer base expansion driven by Group Account on page five.
모임 통장 유저 수는 연 평균 이십육 퍼센트 성장하며 일 분기 말 기준 팔백팔십만 명을 기록하였으며, 유저 수 증가에 따라 잔액도 지속 확대되며, 일 분기 말 기준 전체 요구불 대비 모임 통장 비중은 이십사 퍼센트까지 확대되었습니다. 앞으로는 다양한 형태의 모임에서 필요로 하는 금융 및 소셜 액티비티를 지원할 수 있도록 통장의 기능 및 파트너사 제휴를 확대해 나갈 예정입니다.
KakaoBank Group Account are a widely loved product with half of all new users opening and using a Group Account. Number of users has grown at an annual average of 26%, recording 8.8 million as of the end of Q1. Group Account share against total current deposits have increased to 24%. Going forward, we are planning to increase additional product features to support a wider range of financial and social activities that different group types may require, while also expanding our partnerships further.
이어서 6 페이지입니다.
On to page six.
카카오뱅크는 고객 기반뿐만 아니라 고객 활동성 또한 강화되는 모습을 보이고 있습니다. 카카오뱅크의 일 분기 이체 점유율은 십점육 퍼센트로 은행권 내 오위를 기록하고 있는데, 사대 은행의 실적에는 법인 계좌 이체까지 포함돼 있다는 점과 자산 규모의 차이를 감안한다면 고무적인 성과라고 생각합니다.
Not only have we grown our customer base significantly, but the activity level of our users has also become stronger. Our market share based on bank transfers is 10.6%, putting us in fifth place within the banking sector, which is quite encouraging when considering the difference in asset size between us versus the four major commercial banks and also the fact that their transfers cover both retail and corporate, whereas we are retail only.
Seven page operating revenue.
On to operating revenue on page seven.
1분기 영업 수익은 전 사업 부분이 고르게 성장하면서 전분기 대비 16% 증가한 KRW 560.5 billion을 기록하였습니다. 여신 성장에 따라 이자 수익이 큰 폭으로 확대되었으며, 체크카드 실적 확대와 광고 사업의 성장 등으로 비이자 수익 또한 전분기 대비 28% 증가하는 모습을 보였습니다.
Our operating revenue in the first quarter was KRW 560.5 billion, up 16% Q-on-Q with even growth across all business segments. Interest revenue increased significantly, driven by lending growth, while non-interest revenue also grew 28% Q-on-Q, with debit card transactions and advertisement business posting solid growth.
8 페이지 수신입니다.
Page eight for our deposits.
1Q 수신 잔액은 전분기 대비 22% 성장한 KRW 40.2 trillion을 기록하였습니다. 요구불예금 비중은 전분기 대비 4.9 percentage points 하락한 56.8%를 기록하였는데, 이는 은행권 평균 대비 약 17 percentage points 높은 수준으로 여전히 경쟁력 있는 수신 구조를 유지하고 있습니다. 한편, 1Q 자금조달비용률은 수신 잔액이 확대되면서 전분기 대비 64 BP 증가한 2.26%를 기록하였습니다.
Our Q1 deposit balance was KRW 40.2 trillion, up 22% Q-on-Q. Although our low-cost deposit portion decreased 4.9 percentage points from the previous quarter to 56.8%, it is still 17 percentage points higher than the broad banking sector as we maintain a highly competitive funding structure. In Q1, our funding cost ratio increased by 64 basis points Q-on-Q to 2.26% as our deposit balance increased.
다음 페이지에서는 4월에 론칭한 최적금형 수신 상품에 대해 말씀드리겠습니다.
On page nine, we will move on to our new product that was launched in April called My Favorite Savings Product.
9 페이지입니다.
Page nine.
최적금형 기록 통장은 고객에게 일상 속 행복의 순간과 금융을 연결하는 차별화된 경험을 제공하고자 합니다. 원하는 이미지를 커버로 설정하고 본인만의 입금 규칙을 만들면서 최적금을 쌓아 나가는 과정에서 고객분들이 서비스에 대한 애정을 느끼고 카뱅과 함께하는 경험을 할 수 있을 것이라 생각합니다.
Our new product, called My Favorite Savings Accounts, is intended to provide a differentiated user experience that links up happy moments in people's daily lives with finance. You can choose an image of choice for your journal cover, set up your own deposit rules to accumulate savings the way you want. We believe the new format will make the services feel a bit more personal and special for users and provide them with the sense of togetherness with KakaoBank.
현재는 팬덤을 대상으로 한 최적금만 오픈하였지만, 앞으로 반려동물, 육아 등 다양한 라이프 스타일을 반영한 서비스로 확대해 나갈 예정이며, 모임통장과 26주 적금에 이어 카카오뱅크만의 시그니처 수신 상품으로 자리 잡을 것이라 기대하고 있습니다.
Far, we have only opened up My Favorite Savings Account products for celebrity fan groups only, we will soon be expanding our services to encompass diverse lifestyles, incorporating themes like pets or taking care of babies. We expect this to really anchor itself as one of our signature deposit products alongside our 26 weeks Installment Savings plan and our Group Account.
Next is 10 page loans.
Moving on to page 10 for loans.
1분기 여신 잔액은 전분기 대비 5% 성장한 KRW 29.3 trillion을 기록하였습니다. 주택담보대출 잔액이 전분기 대비 2배 가까이 증가하며 여신 성장을 견인하였고, 신용대출 잔액 또한 6분기 만에 순증 전환하며 이에 기여하였습니다. 1분기 중신용대출 비중은 전분기 말 대비 0.3 percentage points 증가한 25.7%를 기록하였는데, 전체 신용대출 잔액의 확대와 더불어 이런 성과라는 점에서 의미 있게 생각하고 있습니다. 한편 1분기 NIM은 수신 잔액의 확대로 예대율이 하락하면서 전분기 대비 21 BP 낮은 2.62%를 기록하였습니다.
As of the first quarter, our loan balance stands at KRW 29.3 trillion, up 5% Q-on-Q. Mortgage loans were the biggest driver for loan growth, with the outstanding balance increasing by more than double that of the fourth quarter. Credit loans were also another contributor to growth, turning around to a net increase for the first time in six quarters. The share of mid-credit loans grew 0.3 percentage points to 25.7% of total credit loans, which we see as a meaningful outcome since it was achieved even as our total credit loan balance also increased. NIM in the first quarter was 2.62%, a 21 basis point decline Q-on-Q, as the increase in our deposit balance resulted in a lower loan-to-deposit ratio.
다음 페이지에서는 주택담보대출 실적에 대해 자세히 설명드리겠습니다.
On the next page, I will move on to our mortgage loan performance.
11 페이지입니다.
Page 11.
KakaoBank 주택담보대출은 출시 1 year 만에 잔액 KRW 2.4 trillion을 돌파하며 성공적으로 시장에 안착하였습니다. 편리한 사용 경험과 금리 경쟁력을 바탕으로 개화를 포함한 신규 취급액이 매 분기 2배 가까이 증가하였고, 은행권 내 신규 취급액 점유율도 1분기 말 기준 3.7%까지 확대되었습니다. 연내 보금자리론 출시를 통해 시장 커버리지를 더욱 확대할 예정이며, 이를 통해 주택담보대출의 높은 성장세를 이어나가고자 합니다.
KakaoBank's mortgage loans surpassed the KRW 2.4 trillion mark within just one year from launch, making a safe landing in the market, thanks to convenient user experience and competitive rates. With new loans, including the new balance for refinancing purposes, increasing by almost double every quarter. Our market share in the mortgage loan space within the banking sector expanded to 3.7% as of the end of the Q1 . We are planning on new offerings to be launched later this year to further ramp up our market coverage and carry forward strong growth momentum in the mortgage loan space.
12 페이지, Fee business입니다.
Moving on to page 12 for our fee business.
Fee business는 체크카드 실적 확대에 힘입어 수익 규모가 지속 성장하고 있습니다. 1Q 체크카드 이용금액은 KRW 5.4 trillion으로 단일 상품에도 불구하고 체크카드 시장 내 점유율이 12.3%까지 확대되며 의미 있는 성과를 보이고 있습니다.
Our fee business continues to record revenue growth driven by our strong debit card performance with transaction value of KRW 5.4 trillion, expanding our market share to 12.3% in the debit card market, just on the strength of a single standalone product.
다음은 13 페이지, Platform business입니다.
On to our platform business on page 13.
Platform business는 수익 기반을 다각화하며 quarter-over-quarter 수익 규모를 확대하였습니다. 영제 대출과 증권계좌 개설 등은 매크로 환경의 영향으로 성장세가 높지 않았으나, 광고의 경우 사업 초기임에도 불구하고 Samsung Electronics, SK Telecom과 같은 대형 광고주들이 유입되며 광고 플랫폼으로서 경쟁력을 입증하였습니다. 이에 따라 광고 매출 또한 큰 폭으로 증가하여 1Q 플랫폼 수익 중 비중이 13%까지 확대되었으며, 앞으로도 플랫폼 비즈니스의 주요 사업으로 성장할 것이라 기대하고 있습니다.
We have been working to diversify our platform business portfolio, recording increased revenue on a quarter-on-quarter basis. Although our loan referrals and securities account opening service did not see high levels of growth due to the overall macro environment, we demonstrate our competitiveness as an advertising platform, signing on major advertisers including Samsung Electronics and SK Telecom, despite being in the early phase of growth. As a result, advertising as a percentage of total platform revenue increased to 13% in Q1, and we expect ads to continue to grow into a main pillar of our platform business going forward.
그 외 사업별 상세 실적은 14 페이지부터 16 페이지까지를 참고해 주시기 바랍니다.
For further, business performance details, please do refer to the slides from pages 14 to 16.
17 페이지, mini 성과에 대해 말씀드리겠습니다.
On to page 17 for our mini performance.
십칠 페이지입니다.
Okay, page 17.
십대들의 금융 필수 앱으로 자리 잡은 mini는 일상생활과 밀접한 서비스들을 결합하여 생활 필수 앱으로 포지션을 확장하고 있습니다. 그 시작으로 지난 Q4에는 T-money 충전 서비스를 론칭하였는데, 론칭 4개월 만에 600,000명의 사용자를 확보하고 앱의 트래픽을 한층 강화하는 등 의미 있는 성과를 보였습니다.
Mini has become a must-have app for teenagers for financial services. We are looking to add on more services that are closely interlinked to our users daily lives to expand our positioning into a must-have app for broader everyday context beyond finance. As a starter, we launched the mini card T-money top-up service in the Q4 , achieving meaningful results, including 600,000 users within just four months from launch and robust inflow of user traffic.
이번 달에는 기존 mini에 생활과 연계된 요소를 가미하여 일상과 금융을 융합하는 서비스를 선보일 예정이며, 3Q에는 mini 대상 고객의 연령을 확대하여 더욱 많은 청소년에게 일찍부터 금융 생활을 경험할 수 있도록 기회를 제공하고자 합니다. mini는 앞으로도 십대들의 금융과 라이프를 아우르는 서비스로서 발전해 나갈 것입니다.
This month, we are planning to incorporate another lifestyle related element onto the existing mini offering as a converged finance/everyday service, while expanding into other age groups in the third quarter this year to let more young people experience finance at a younger age. We will continue to build out our mini lineup to encompass teenagers finance and everyday lifestyle needs. Moving on to SG&A and CIR on page 18. In the first quarter, our SG&A recorded KRW 92.8 billion, down on 29% Q-on-Q as fourth quarter one-offs, such as payout of performance bonus and contribution into the employee welfare fund dissipate. In Q1, we recorded CIR of 33.1%, which is a significant improvement from the previous quarter. On to our operating profit on page 19.
First quarter operating profit increased 59% Q-on-Q, recording KRW 136.4 billion as our revenue increased significantly, driven by loan growth. The uplift in operating profit resulted improvements in our ROE and ROA, which was 7.16% and 0.96% respectively, a significant improvement Q-on-Q. Moving on to next page for asset quality. Page 20. In the first quarter, delinquency went up by nine basis points quarter-on-quarter to 0.58%, while our NPL ratio was 0.43% and our loan loss allowance coverage ratio 2,234%. Our credit cost improved by nine basis points Q-on-Q, recording a ratio of 0.76% despite conservative provisioning against internal and external sources of uncertainty.
On to page 21, where I will explain further about our portfolio stability. At KakaoBank, we maintain high level of capital soundness based on stable asset management. As of the 4th quarter last year, our valuation loss and securities against total equity was the lowest in the banking industry at 2.4%, which was then reduced further to 1.3% in the 1st quarter. Also, we have continued to enhance the stability of our deposit by reinforcing our customer base while lowering our liquidity risk. Our high level of stable deposits that are used for payroll transfers and credit card transactions stands at 37.3% as of the forth quarter, it is in fact the highest in the industry. It is a good indicator of the close intimacy we enjoy with our customers thanks to customer trust.
We will stay committed to running our operations on a sound, stable basis to further enhance the stability of our business and solidify customer trust. Lastly on to page 21 on key highlights of our ESG performance. As part of our drive to put ESG management into real practice, we will be seeking to acquire the ISO 14001 certification on environmental management system. Once acquired, this will make us the first internet bank with this certification, and we expect this to enhance our assessment rating. With that, this concludes our financial results and business performance for the first quarter of 2023. We will now move on to the Q&A session.
지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 2번을 눌러주시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다.
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 have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. In order to allow as many Q&A chances as possible within the restricted time, we would appreciate only two questions per each participant.
처음으로 질문해 주실 분은 골드만삭스증권의 박신영 님입니다.
The first question will be provided by Sinyoung Park from Goldman Sachs. Please go ahead with your question.
안녕하세요. Goldman Sinyoung Park입니다. 이번 분기에 지난 하반기부터 시작이 되기는 했지만 이번 분기에 대출 성장 가속화가 굉장히 뚜렷하게 보이는 것 같습니다. 작년 연간으로 한 8% 정도 성장 이후에 한 분기만에 5%대 성장세가 나왔는데요. 올해 주담대 시장 커버리지 확대 계획도 가지고 계셔서 다소 이를 수 있지만 작년 말에 공유해 주셨던 10% 중반대 대출 성장 목표를 상회할 수도 있는 상황인 것 같아서요. 올해 대출 성장 가이던스를 상향 조정하실 생각이 있는지 경영진의 생각을 여쭙고 싶고요. 두 번째는 기타 수익이랑 판관비 쪽 질문인데요. 앞서 언급하셨던 대출 성장 재개로 탑라인 개선에 도움이 된 거는 맞지만 수치적으로 보면은 기타 수익 쪽의 수치가 큰 폭으로 뛴 것 같아요. 이 부분에 특이 내역이 있었는지 더 상세한 설명 부탁드리고요. 마찬가지로 페이지 18 페이지의 판관비 구성을 봤을 때 광고 선전비랑 기타 비용에서의 축소가 컸었던 것 같습니다.
이런 추세가 앞으로도 유지될 수 있는 부분인지 좀 내역에 대해서 언급 주시면 도움이 될 것 같습니다. 감사합니다.
Yes, this is Sinyoung Park from Goldman Sachs. Thank you for the opportunity to ask some questions. I think, starting the second half of last year, you did start to see some loan growth. For full year last year, you achieved 8% growth, whereas just in the first quarter alone, you have achieved 5%, which suggests acceleration of growth. Do you have any plans to change your loan growth guidance for this year? At the end of last year, you spoke about mid-10% levels. Given your plans to expand market coverage for your new market loans, et cetera, do you think that the guidance will perhaps be upgraded? The second question has to do with other revenue and also SG&A.
It seems that very strong loan growth has led to top line improvement, and I think there's also a jump in some other revenue items as well, so if you could elaborate. In terms of SG&A on page 18, it seems that advertisement and marketing costs and other expenses seem to have gone down significantly. If you could provide a breakdown of those cost items and your comments on whether you think those trends are likely to be sustained, I would appreciate it.
우선 질문 주신 첫 번째 여신 성장에 대한 말씀을 드리도록 하겠습니다.
To address, your first question regarding loan growth.
말씀 주신 것처럼, KakaoBank의 1분기 여신 성장은, 저희가, 지난 Analyst Day를 통해서 말씀드렸던 수준과 거의, 일관된 모습으로 성장할 수 있었습니다.
In terms of the loan growth that we have seen in the Q1 , I think this was very much consistent with the growth guidance that we provided at the Analyst Day conference.
올해 가이던스 드렸던 mid-10%의 대출 성장에 대해서는 저희는 달성 가능성이 매우 높다라고 판단하고 있습니다.
We believe that our present guidance on mid 10% loan growth for this year has a very high likelihood of being achieved.
많은 분들이 우려하고 계신 것처럼 지금의 거시경제 환경은 그 불확실성이 너무 커서 현재 시점에서 저희가 가이던스를 조정하는 것은, 조금은, 성급하다라고 생각하고 있습니다.
As everybody is aware, there is a great deal of uncertainty across the macroeconomic environment, which is a source of concern. To adjust our guidance at this present point, I think it would be too premature.
저희는 올해 다양한 대출 상품을 추가하여 상품 라인업을 보강해서 여러 가지 대출 상품의 공급을 통한 여신 성장을 계획하고 있는데, 그럼에도 불구하고 예를 들어서 전월세 대출의 경우에는 최근에 사기라든가 여러 가지 이슈로 인해서 순증 증가가 쉽지만은 않은 상황이라고 판단하고 있습니다.
This year, of course, we have a plan to come up with more new loan products to supplement and reinforce our loan lineup. We do have plans to grow our loan book through the supply of new products. That being said, there are many contingencies that could happen. For example, we're seeing increased fraud in the housing loan space, for example, Having deposit loans, I mean. It is generally a very challenging environment to expect net increase in loans.
Uh,
Regarding the breakdown of our other revenue for the first quarter, well, it does include KRW 5.2 billion in disposal gain from loan receivables. Also in the mix is KRW 30 billion in valuation or disposal gains on marketable securities. As the loan-to-deposit ratio has gone down, that means the size of our investable assets has increased. We have invested in certain marketable securities. That is reflected here, again, the amount being KRW 30 billion. Otherwise, other cost items under SG&A are largely consistent with our original business plan. We do not foresee any major change there.
As we explained, during our analyst day conference in February, we intend to continue our efforts to further improve down our CIR ratio, from somewhere around the high 30% level, to a lower, more improved level.
The following question will be presented by Jihyun Cho from JPMorgan. Please go ahead with your question.
Yes, this is Jiyeon from JPMorgan. Thank you for letting me ask two questions. I'm interested in some of the terms of your home mortgage loan product. Similar to your credit loans, is it true that there is no penalty against early repayment? If you could explain that. To maintain a certain loan balance, do you anticipate more intensified competition, perhaps similar to dynamics we have seen in the loan market previously? Regarding NIM, you have seen a 21 basis point drop in the first quarter, namely because of very outsized loan growth in the first quarter. Going forward, considering the rising funding costs, how much more of a drop do you foresee in NIM in the upcoming quarters, Q2 , Q3 ?
If you could provide any guidance, I would appreciate it. First, regarding the early payment penalty for mortgage loans. Overall, we aim to achieve a relatively lower funding cost through the strength of our convenient offerings and outstanding customer service. Thanks to our competitive funding cost profile, we aim to maintain low lending rates to give as many people access to good lending terms as possible. Unlike credit loans, if you look at mortgage loans, just the nature of the product, they tend to, of course, have much longer maturity and long fixed interest term. In the interest of portfolio stability, we do feel that a mechanism like early repayment fee, for example, may be required.
While that may be true, we actually did not request early repayment fees on our mortgage loans because we wanted to stay consistent with all other loan products offered by KakaoBank. To the extent that we could manage, we wanted to ensure that we did not place that kind of penalty provision on any of our loan products for enhanced convenience of our users. While we do not have any finalized plans to date, we will still engage in further discussions on possibility of applying this kind of mechanism, mindful of different factors including market interest rates, the behavior of borrowers in terms of early repayment, also our funding costs, our deposit funding structure, also the returns we get on our assets as well.
We pride ourselves on having managed all of our loan products to date very stably without having to apply a penalty against early repayment for all of our loans, including credit loans, our housing deposit loans, and also mortgage loans as well, without incurring loss. We'll be closely monitoring the market environment to observe developments and also engage in further negotiations to determine how we will proceed going forward. Your second question regarding NIM. As you know, we have observed big swings in market interest rates and also widening of uncertainty.
Although we are cautious because the directionality of market interest rates are not clear yet, still our view is that as we explained during the analyst day session in February, we intend to manage our NIM at a level consistent with last year's NIM. This assumption that we will be able to manage our NIM at a consistent level, similar to last year, is based on certain assumptions. We have taken into account the growing portion of home mortgage loans against our total loan portfolio. Also, we're assuming that the spread between market rates and the benchmark policy rate will resume to more normalized levels.
The following question will be presented by Dohwa Kim from Hanwha Investment & Securities. Please go ahead with your question.
Yes, this is Kim Do from Hanwha Investment & Securities. I'd like to ask two questions regarding deposits first and then your capital management policy. In the Q1 , your deposit base has increased significantly by about KRW 7 trillion or so. Of that, I think your savings account and also savings products actually account for about KRW 4.6 trillion. What was the purpose of that expansion in deposit base? How do you intend to use the deposit proceeds? Is it mainly intended to grow your loan book or are you anticipating increased allocation to marketable securities towards the end of this year? Was that also a plan of one of the usage for the increased deposits?
If you look at the newly acquired deposits just in the first quarter, what is the average duration or average maturity of those deposits? I'd like to know as well. A second question regarding your capital deployment plan. I think you announced plans to do some share buybacks. Assuming the loan growth assumptions that you have in mind, what is the big picture? You're now recording retained earnings available for dividends. With a lot of a big capital position already, how do you intend to manage your capital deployment? Just briefly regarding the maturity structure of the newly funded deposits. 80%-85%, so most of the new deposits have a maturity of less than 12 months.
Actually, the highest concentration in maturity actually, is nine months. This indicates some behavioral change and changing preferences among deposit holders. Previously, they would prefer to choose one year to three years maturity, but now we see that there is clear preference for maturity under one year. In terms of the use of the deposit funding, well, first and foremost, they will go toward supporting loans. Unlike other commercial banks, although we have been given a credit rating, we have less experience doing fundraising on the capital market by issuing bank debentures.
Given a great uncertainty in terms of interest or market interest rates, we think that it would be in our favor to raise most of our funding through savings or checking accounts, so through deposits rather than financing on the capital markets by issuing bonds. As much as we can, we want to raise most of the funding this year through deposits. Because retail internet-only banks actually are imposed a certain disincentive or penalty in the calculation of loan-to-deposit ratio, we think again, it is in our best interest to maintain a very large stable base of deposits relative to the size of our loans.
향후 저희가 조달된 자금 중에 대출로 취급되지 않은 자금에 대해서는 당연하게도 일반 은행들과 마찬가지로 자산운용을 통해서 수익을 제고하고 있는데, 저희는 말씀 주신 것처럼 작년부터 trading성 거래를 이제 강화하려는 목표를 가지고 있습니다.
In terms of the raised funding, of course, most will go toward lending. What does not go to issue loans will be used for asset management, so they will be invested in assets to drive investment returns, same as for any other bank. Starting last year, we have been working to increase our trading of these types of investment instruments.
과거의 경우에 KakaoBank는 자산운용이 유동성 확보 차원에서 국공채 위주로 운용을 했었는데요. 작년부터는 그 범위를 다양화해서 공사채라든가, 그리고 은행채, 그리고 더 나아가서는 채권형 수익증권으로 그 자산의 범위를 확대하고 있습니다.
For our investment returns, previously we are mostly focused on investments into treasury bonds to secure liquidity. However, starting last year, we've been increasing the scope of our investments to also include agency bonds, bank debentures, also fixed income type beneficiary certificates as well.
다음으로 질문하신 자본과 관련한 질문에 대한 답을 드리겠습니다.
Your next question regarding our capital management.
카카오뱅크는 어 조달된 자본을 다시 시장으로 돌려드리는 게 아니라 저희가 만들어내는 어 수익에서 경상이익에서 어 필요한 범위 내에서 저희가 감내할 수 있는 범위 내에서 투자자분들에게 어 자사주 매입이라든가 배당 등을 통해서 환원하려는 목표를 가지고 있습니다.
In terms of our capital management policy, the goal for us is to use our recurring base of retained earnings. To the extent that we find it manageable, we want to give back to investors either in the form of dividend payoffs or through share buybacks.
이것은 일반 fintech와 달리 KakaoBank는 정상적인 영업활동을 통해서 안정적이고 높은 수준의 성장성 있는 현금 창출 능력을 시장에 보여드리고 싶은 마음과 동시에 그렇게 만들어진 수익을 주주에게 환원시키는 이런 전체 사이클을 완성시키는 모습으로 위치시키고 싶기 때문입니다.
That is because of our unique positioning, which is different from that of the fintech players. We actually want to go full circle. We want to carry out normal business operations and create a very stable and high cash flow and really demonstrate to the market our cash generative capabilities and then take the recurring earnings to give back to our shareholders.
지금 잉여 자본으로 나와 있는 대출, 그 자본의 활용도는 말씀드린 것처럼 대출과 다음으로는 글로벌을 포함한 다양한 투자 활동에 대한 논의를 계속하고 있어서, 이 부분에 대한 논의도 차츰 금년 중에는 시장에 대해서 커뮤니케이션 할 수 있을 거라고 생각합니다.
Again, in terms of the use of capital, the number one priority is to go toward loans. We have ongoing discussions about possible investments, either global or in Korea. We will be crystallizing those discussions and perhaps we'll be ready to share more with the market sometime within the year.
다음 질문 받겠습니다.
다음으로 질문해 주실 분은 KB증권의 강승건 님입니다.
The following question will be presented by Seung -Gun Kang from KB Securities. Please go ahead with your question.
예. 질문 기회 주셔서 감사합니다. 저는 그 연체율 관련된 질문 하나만 좀 드리려고 하는데요. 이번에 이제 연체율이 이제 전분기 대비 좀 이제 상승하는 업계 공통 요인이긴 한데, 이제 상승하는 흐름을 이제 보이고 있는 것 같습니다. 이 주택담보대출이 이번에 이제 많이 들어와서 이제 연체율 산출하는 데 있어서는 좀 긍정적인 영향을 좀 미쳤을 것 같은데요. 질문은 저희 이제 신용이랑 마이너스 대출 있잖아요. 이제 신용대출의 연체율 추이를 뭐 지난해 뭐 한 3분기 이후부터 어 그런 추이를 좀 알려주셨으면 감사하겠습니다. 이번에 이제 1분기에 충당금 전입에 혹시 추가 충당금이나 어떤 이런 가정금융을 통해서 반영한 부분들도 있으시면 같이 좀 설명 부탁드리겠습니다.
Yes, thank you. Let me ask some questions regarding your delinquency ratio, which actually has gone up quarter-on-quarter. This applies to the entire industry, not just KakaoBank. I imagine that the increase in mortgage loans actually may have had a positive impact on your delinquency rate calculation. Could you provide some detail regarding what kind of delinquency trends you have been seeing, particularly for your credit loan or your overdraft loan type products starting Q3 last year, to date? Then, have you done any additional provisioning against loan loss in the Q1 ? If you could explain.
Uh,
In terms of the delinquency trend on our credit loans, we actually have been seeing similar trends with the broad market, of an increase in the delinquency ratio.
Uh,
As of March, I believe that the delinquency ratio on our credit loans currently stands at 0.7% if I recall correctly.
Uh,
actually 0.64% to be exact.
Uh,
This 0.64% applies to our high credit loans and mid-credit loans all combined. Between the two types of loans however, there is about a three to four times difference in terms of the delinquency ratio. Starting in the second half of last year, while delinquency for our high credit loans has held steady, it is true that we have seen uptrends for our mid-credit loans. In terms of additional provisioning that we have done in the Q2 last year, based on our consultation with the FSS, we at that time did KRW 12.6 billion in additional provisioning, followed by KRW 7.4 billion in the Q4 at year-end. Then, this year Q1 , there was additional one-off provisioning of KRW 9.4 billion.
Thank you to all the analysts, investors taking part in today's conference call. With that, we'll now conclude the conference call for first quarter 2023 KakaoBank. Thank you very much.