Good morning and good evening. Thank you all for joining this conference call. Now we will begin the conference of the fiscal year 2022 fourth quarter 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 2022 fourth quarter earnings results by KakaoBank.
Hello this is Veronica from KakaoBank's IR team. We will now begin KakaoBank's earnings call for the fourth quarter 2022. Today we are joined by members of management, including our CEO Daniel Yun, Vice President Jay Kim, Chief Operating Officer Sean Kim, Chief Strategy Officer Jung-hee Ko, Chief Financial Officer Lee Seung-hwan , and Conrad Shin, Chief Technology 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 it over to Sean Kim, our COO, to present our fourth quarter 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 fourth quarter 2022 earnings conference. Let me take you through our key highlight results.
Please turn to page three for a summary of the highlights. For KakaoBank, 2022 was a year of reinforcing the underlying foundation for greater growth going forward. In terms of our banking business, we're able to complete our retail product portfolio with the successful launch of our home mortgage loan product, while also advancing into corporate banking with the launch of business owner loans in November. With our strong lineup of signature deposit products, we're able to maintain a decision funding structure even within the rate hike cycle, while reaffirming KakaoBank's unique competitiveness in deposits. On the platform business front, we continue to explore many new services as drivers for future growth and revenue. These efforts translated into strong business performance, delivering meaningful growth in our customer base and overall business.
Total number of customers passed the 20 million mark with 14% year-on-year growth, while operating profit improved by 38% year-on-year, recording KRW 353.2 billion, thanks to growth in our deposit and loan portfolio and also improved CIR. Onto our customer base on page four. As of the end of Q4, number of customers totaled 20.42 million, as we achieved record MAU of 16.44 million, with the launch of new services driving higher activity levels among our user base. Customers were evenly spread out across all age groups, with the working age population penetration recording 71%, which is 7 percentage points higher versus last year. Page five for operating revenue.
수익이 5%, fee 및 기타 수익이 나머지 14%를 차지하였습니다.
Amid rising market rates, we continue to see an increase in interest revenue, which recorded KRW 484.7 billion, up 57% YOY and 18% Q-on-Q. Full year interest revenue in 2022 accounted for 81% of total operating revenue, with platform revenue making up 5% and fee and other revenue making up the remaining 14%.
다음은 6 페이지 수신입니다.
On to deposit on page six.
사분기 수신 잔액은 전년 동기 대비 십 퍼센트 성장한 삼십삼점일조 원을 기록했습니다. 전분기 대비해서는 사 퍼센트 감소한 수치인데 이는 여신 및 수신 잔액의 성장 속도를 감안하여 효율적인 여대율 관리를 위해 수신 금리를 늦게 조정한 영향입니다.
Our Q4 deposit balance was KRW 33.1 trillion, up by 10% year-on-year. The balance decreased by 4% from the previous quarter due to later adjustments made to our deposit rates, to manage our loan to deposit ratio more efficiently, taking into account the pace of growth we are seeing on both the loan and deposit side.
사분기 요금 예금 비중은 61.3%를 기록하였습니다. 사분기에도 은행권 내 역 머니 무브 현상이 이어졌으나, KakaoBank는 모임 통장을 비롯한 차별화된 수신 상품을 바탕으로 수신 경쟁력을 유지할 수 있었습니다.
In the fourth quarter, the percentage of low cost deposits stood at 61.3%. Although Q4 continued to see reverse money movement out of the banking sector, KakaoBank was able to maintain competitiveness in funding, thanks to the strength of our differentiated deposit products such as group accounts.
사분기 자금조달 비용률은 전분기 대비 사십 bp 상승한 일점육이 퍼센트이며, 연간으로는 전년 대비 사십사 bp 상승한 일점이상 퍼센트를 기록했습니다. 작년 한 해 동안 일곱 차례의 금리 인상이 단행되며 기준금리가 이백이십오 bp 상승하였지만, 카카오뱅크는 요금 예금 중심의 효율적인 조달 구조로 비용 상승을 최소화할 수 있었습니다.
Funding costs reported 1.62% in the fourth quarter, up by 40 basis points from the third quarter. However, on a full year basis, funding cost was 1.23%, up by 44 basis points, YoY. Although the policy interest rate rose by 225 basis points throughout the course of last year with seven rate hikes, we were nonetheless able to minimize the rise in funding costs, thanks to our efficient funding profile centered around our strong base of low cost demand deposits.
7 페이지에서는 KakaoBank의 차별화된 수신 상품에 대해 말씀드리겠습니다.
Moving on to KakaoBank's differentiated deposit lineup on page seven.
카카오뱅크의 모임 통장은 모임원 초대부터 회비 관리까지 편의성 높은 서비스를 바탕으로 많은 고객들로부터 사랑받고 있습니다. 모임 통장 유저 수는 이천이십년 넘, 이십년 말 기준 팔백이십만 명으로 작년 말 대비 이십팔 퍼센트 성장하였습니다. 지난달에는 회비 규칙과 생활비 관리 기능을 추가하면서 고객의 니즈를 적극적으로 반영하고 있으며, 앞으로도 모임 통장의 기능성을 지속 강화할 계획입니다.
Users love our Group Accounts for their convenient services. From the chat room invite function to management function for member funds. The number of Group Account users now totals 8.2 million as of the end of 2022, up 28% versus the end of last year. Last month, we introduced new functionality allowing the account holder to manage fee payment dates, also overdue funds as well by members, and also management of living expenses as we work to more proactively reflect user needs. We intend to come up with even more add-ons going forward.
26-week savings은 다양한 파트너사들과 함께 고객에게 차별화된 혜택과 재미를 제공하여 오픈 때마다 많은 인기를 얻고 있습니다. Q4에는 매월 신규 제휴사와 의 26-week savings 상품을 출시했고, 상품별 평균 300,000명 이상의 고객들이 새로이 26-week savings에 가입했습니다. KakaoBank의 채널 경쟁력이 강화됨에 따라 함께하는 제휴사와 고객들 모두 윈-윈할 수 있는 상품으로 성장해 나가고 있습니다.
For our 26-week savings account, we have been working with different partners offering differentiated fund and benefits for users, with all new releases receive a popular response every time. Each month throughout the fourth quarter, we launched a new 26-week savings product with a new partner, recording on average 300,000 or more users signing up per product. As KakaoBank's channel becomes more competitive, our 26-week savings accounts continue to evolve into a robust product offering, providing win-win for our partners and customers alike.
다음은 8 페이지 여신입니다.
On to loans on page eight.
사분기 여신 잔액은 전년 동기 대비 팔 퍼센트, 전분기 대비 이 퍼센트 성장한 이십칠점구조 원을 기록하였습니다. 주택담보대출 잔액이 전분기 대비 이배 이상 증가하면서 여신 성장을 견인하였고, 작년 십일월 런칭한 개인사업자 신용대출도 안정적인 운영하에 구백일억 원의 잔액을 기록했습니다.
In Q4, our loan balance recorded KRW 27.9 trillion, up 8% YoY and 2% QoQ. Mortgage loans were the biggest driver for growth, with the outstanding balance increasing by more than double that of the third quarter. Our new business owner credit loans, which were launched November last year, also seeing stable growth with KRW 90.1 billion in outstanding balance.
전체 신용대출 대비 중신용대출 비중은 25.4%를 기록하며 연간 목표를 초과 달성하였습니다. 4분기 순이자마진은 시장금리 상승에 따른 이자수익 확대 및 저원가성 예금 확보 영향으로 전분기 대비 27 basis points 상승한 2.83%를 기록하였고, 2020년 연간 순이자마진은 전년 대비 50 basis points 상승한 2.48%를 기록하였습니다.
Meanwhile, the share of mid credit loans grew to 25.4% of total credit loans, surpassing our annual target. Net interest margin in Q4 recorded 2.83%, which is a 27 basis point improvement QoQ amid widening interest revenue from rising market rates, and also due to our strong low cost funding base. On a full year basis, we recorded net interest margin of 2.48%, which is 50 basis point growth versus last year.
다음 페이지에서는 주택담보대출 실적에 대해 자세히 설명드리겠습니다.
Moving on to the next slide. I will move on to our mortgage loan performance.
9 페이지입니다.
Page nine.
작년 이월 론칭한 카카오뱅크 주택담보대출은 부동산 경기 침체에도 불구하고 출시 일 년여 만에 잔액 일조원을 돌파하였습니다. 신규 취급액은 사 분기 연속 직전 분기 대비, 어, 이, 두 배 이상 증가하면서 가파른 성장 곡선을 그렸고, 은행, 은행권 점유율도 사 분기 말 기준 이점 칠 퍼센트까지 확대되었습니다. 이 같은 성장은 카카오뱅크만의 편리한 사용 경험과 금리 경쟁력으로 주택 구입 자금뿐만 아니라 대환 등의 생활 안정 자금 수요까지 모두 사로잡았기에 가능했습니다.
KakaoBank's mortgage loans, which were launched last year in February, surpassed the KRW 1 trillion mark within just one year or so from launch. Despite the overall slowdown in the real estate market. In Q4, new loans increased by more than double versus the third quarter, following a steep growth curve, and our market share within the banking sector expanded to 2.7% as of the fourth quarter. This ramp up in growth was possible due to KakaoBank's unique convenient user experience and competitive rates, which capture demand not only for home mortgage loans for home purchases, but also for home equity loans to fund daily living expenses.
KakaoBank는 론칭 이후 대상 지역 및 물건을 매 분기 확대하며 주택담보대출 시장 내 커버리지를 Q4 end 기준 32%까지 확대하였습니다. 올해는 상품 라인업의 강화를 통해 시장 커버리지를 more than 2x 확대할 계획이며, 이를 통해 주택담보대출의 높은 성장세를 이어나갈 예정입니다.
Since launch, we have been expanding the geographical coverage and also scope of housing types with our mortgage market coverage growing to 32% as of the end of Q4. We plan to further strengthen our product lineup further this year to grow our coverage even more, to more than double the current level to continue to drive steep growth in our new mortgage loan book.
10 페이지부터는 Fee 및 플랫폼 비즈니스에 대해 말씀드리겠습니다.
Starting from page 10, I will move on to our fee and platform business.
Fee 비즈니스는 체크카드 실적 확대에 힘입어 수익 규모가 지속 성장하고 있습니다. 2022년 체크카드 취급액은 전년 대비 18% 증가한 KRW 20.9 trillion을 기록하였고, 시장 점유율은 11.9%까지 확대되었습니다. 플랫폼 비즈니스는 국내 주식 투자를 비롯한 신규 서비스 론칭으로 포트폴리오를 다각화하였습니다. 현재는 증권계좌 개설과 연계대출의 수익이 전체 플랫폼 수익의 절반 이상을 차지하고 있으나, 서비스 라인업이 확대되면서 점차 균형 잡힌 수익 구조와 규모 있는 성장을 이룰 것으로 기대하고 있습니다.
Our fee business continues to record top line growth, driven by our strong debit card performance. Debit card transaction volume recorded KRW 20.9 trillion, up 18% year-on-year in 2022, and expanding our market share to 11.9%. On the platform business side, we further diversified our product portfolio by introducing new services such as domestic stock trading. At present, although revenue from referral loans and securities account opening comprise of more than half of our platform revenue, we expect to be able to achieve a more balanced revenue mix and growth at scale as we continue to expand our service lineup.
플랫폼 비즈니스에 대해서는 다음 페이지에서 더 자세하게 말씀드리겠습니다.
I will elaborate further details on our platform business from the next slide.
Page 11 securities business.
page 11 on our brokerage accounts business.
카카오뱅크는 고객들의 투자 생활에 꼭 필요한 서비스들을 앱 안에 구현하여 투자 맥락을 강화하고 있습니다. 현재는 가장 보편적인 주식투자에 대한 커버리지를 넓혀가고 있으며, 작년 십이월 한국투자증권과의 제휴를 통해 국내 주식을 매매할 수 있는 웹 트레이딩 시스템을 론칭하면서 계좌 개설부터 거래까지 이어지는 투자 여정을 완성하였습니다. WTS는 론칭 이후 일 방문자 수 대비 거래율이 지속 증가하고 있어 플랫폼 비즈니스 다각화와 더불어 고객 활동성 강화에도 긍정적인 영향을 미치고 있습니다. 올해도 투자 자산의 확대와 자산관리 서비스 다양화를 통해 증권 비즈니스를 강화해 나갈 계획입니다.
At KakaoBank, we have been focusing on strengthening our relevance within the investment context by incorporating essential services that users require for daily investment purposes into our apps. At present, we have been expanding coverage for stocks, which are the most common form of investment for most, launching a WTS or web trading system for domestic stock trading in partnership with Korea Investment & Securities. Our WTS service has seen increased transaction per daily visitor since launch, having a positive impact on diversification of our platform business. Also helping to boost the activity level of our users. We intend to continue to expand our scope of investment assets and introduce more diverse asset management services to grow our securities business further. On to page 12.
For our referral loan business, last December, 8 Percent joined as a new referral loan partner, adding up to a total of 21 financial partners as of the end of Q4. The total cumulative transaction amount grew by 38% year-over-year, recording KRW 5.7 trillion. We are working with 5 credit card companies for our co-branded credit card business as we continue to expand market coverage, partnering with Samsung Card last November to launch a card for self-business owners only. The cumulative number of cards issued increased by 56% versus last year, recording a total of 570,000. On to page 13. We have been looking to grow our advertising business, which we feel is a segment where we can maximize KakaoBank's platform power.
We currently have three products available in our mix, including a premium ad offering. Premium ads placed on the home screen and loan ads targeting real demand users have shown a strong click-through rate with positive feedback from our advertisers. For third party loan ads, all advertisers that purchased a slot during our pilot run last year have all repurchased, despite the increase in unit pricing, which represents very meaningful performance for us. Kakao AdFit ads have also been settling down nicely as a stable revenue stream, leveraging overwhelming traffic driven by our 20 million strong user base. This year, we intend to ramp up our advertisement business even further and expect a significant uplift in revenue as we examine greater diversity of advertising products to build up a sustainable advertising business. Next, on to our mini accounts on page 14.
mini users grew 40% year-over-year, recording a total of 1.6 million users and achieving 69% penetration within the age 14-18 population in Korea. The transaction value of mini card users grew 72% year-over-year, recording KRW 385.9 billion, maintaining sustained growth momentum. Starting on page 15, let me explain about our new banking service for business owners, which were unveiled last November. Our business owner loans drew 200,000 individual business owner customers within just two months from launch, allowing us to establish a strong position on the market.
Last month, we launched our simple tax return filing services for business owners as well, as we advance further into the business domain of individual business owners, recording 180,000 customer views for tax inquiry services in the first two weeks alone. Going forward, we plan to build out an unmatched lineup of services that links up banking with the real world business needs of our customers to support business owners in all of their journeys in running a business. On to page 16 for our new service pipeline. This year, we wish to make more diverse user experiences available to our customers that link up financial services with people's day-to-day lives. Last January, we launched tax services for business owners to expand beyond the banking context and build out into the broader business domain.
In April, we plan on leveraging the fan base that has been accumulated so far to launch a new deposit product with a new element of fun to get more business owners into how fun finance can be. Later in the second quarter, we will be extending the age range of our mini users to provide more essential financial services to a wider range of users. We want to continue to strengthen our relevance in the investment context. Coming up with more investment related offerings in the second quarter and beyond. We will acquire a fund license and introduce a new way of investment into funds going forward. Next on to SG&A and CIR on page 17. In the fourth quarter, SG&A was KRW 130.3 billion, up 39% Q-on-Q.
Labor costs increased by KRW 31.7 billion Q-on-Q due to one-off factors such as payout of performance bonus and contribution into the employee welfare fund. Advertising and promotion increased slightly as well with new service launches, including banking for individual business owners. CIR rose to 47.7% in Q4, but was lower at 42.6% on an annual basis, which is a 2.5 percentage point drop from last year. Page 18. Fourth quarter operating profit increased 65% year-on-year, recording KRW 85.8 billion, down 18% Q-on-Q. Due to the one-off SG&A factors that I mentioned before. We saw a slight Q-on-Q decline in ROE and ROA, which recorded 4.69% and 0.67% respectively from reduced operating profits. Moving on to asset quality on the next slide.
Page 19. In the fourth quarter, delinquency went up by 13 basis points Q-on-Q to 0.49%, while NPL ratio was 0.36% and loan loss allowance coverage ratio 259%. Provisioning increased by KRW 11.8 billion Q-on-Q to KRW 59.5 billion. The credit cost ratio was 0.66%, up by 6 basis points Q-on-Q. The increase in provisions was mainly from additional provisioning set aside to reflect adjustments to the economic outlook for 2023. Credit costs not including this one off was 0.59%. Lastly, page 20. In 2021, KakaoBank established a dedicated ESG organization and since have been moving at the forefront of ESG initiatives.
Last year, we became the first internet bank to become a member of the UN Global Compact, and in December introduced the financial safety insurance campaign together with KakaoPay to help prevent online financial fraud as we play a leading role in financial consumer protection. We will continue these global initiatives further to consistently reflect ESG values across our entire business spectrum. This concludes our financial results and business performance for fourth quarter 2022. With that, we will now move on to Q&A.
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 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 2 questions per each participant. The first question will be provided by Shinyoung Park from Goldman Sachs. Please go ahead with your question.
ne, 안녕하세요. 저 골드만삭스증권의 박신영입니다. 우선 첫 번째는 그 올해 대출 성장에 대한 가이던스를 좀 부탁드리고 싶습니다. 앞서서 이제 올해 주담대 높은 성장을 기대하신다고 말씀을 하셨는데, 저희도 사실 작년 하반기에 서비스 지역 뭐 대상 아파트 확대하면서 뭐 규모가 확연하게 픽업되는 거는 봤었던 것 같아요. 올해 추가적으로 시장 커버리지를 높이려면 뭐 빌라나 다세대 같은 그런 담보 종류를 확대하는 게 좀 도움이 될 것 같은데, 또 사실 한편으로는 이게 규격화된 아파트처럼 거래가 많이 일어나는 물건이 아니다 보니까 적정 수준에서 감정가가 세팅될 수 있는지 좀 우려스럽기도 합니다. 이 부분에 있어서 어떻게 생각하시는지 궁금하고, 향후 계획에 계획하고 계신 타임라인도 그 공유 부탁드립니다. 두 번째는 비용 관련된 건데요. 앞서 말씀하신 일회성 금액 규모가 어느 정도 그였는지 말씀 부탁드리고, 또 올해 이제 채용 계획에 대해서도 좀 말씀을 주셨으면 좋겠어요.
Uh, 저희가 봤을 때 사분기 말 기준으로 총 직원 수가 거의 천사백 명에 가까워진 것으로 보이고, 이게 그 작... 그러니까 이천이십일년 말 그 기준으로 보면은 거의 한 이십육 프로 정도 신규 채용이 일어난 것으로 보입니다. 그래서 이런 빠르게 일어난 인원들 때문에 그 코스팅콤 비율이 개선이 좀 더딘 부분이 있는 것 같은데요. Uh, 최근 글로벌리 이제 경제 환경 악화 때문에 그런 그 신규 채용 이런 거를 많이 줄이고 있는데, 카뱅도 그런 측면에서 변화가 생길 수 있는지 궁금합니다. 감사합니다.
Shinyoung Park from Goldman Sachs Securities. I have two questions. First, could you provide your guidance in terms of loan growth for 2023? I think you mentioned earlier that you expect high growth in the home mortgage loan space. I think, starting the second half of last year, we did already see significant pickup in your business as you expanded the scope of your geographical coverage and also the types of housing properties that qualified. This year, if you want to further increase your market coverage from the current level, I think, definitely, you know, widening the scope of housing types to include villas or multi-family type units outside of apartment buildings should help. Unlike with the more standardized apartment units, there tend to be less transaction volume for those types of residential units.
Do you think that there will be any problem in obtaining like adequate valuation or appraisals on the value of those types of properties? What are your plans regarding those different housing types and also timelines? Second question has to do with costs. You mentioned certain one-off factors. What is the total amount of one-off costs that you're talking about? I think this links up with your hiring plans because as of the end of the fourth quarter, I think your headcount is now approaching 1,400. And relative to the end of 2021, that means a net increase of 26% in terms of new hiring. I think potentially that may be what is slowing down your improvement in CIR.
Given the deteriorating global economic environment, many other companies actually have been scaling back their new hiring plans. Potentially, do you think that that kind of change is also possible at KakaoBank?
네, 답변드리도록 하겠습니다.
Yes. Let me take your question.
먼저 대출 성장에 대한 가이던스를 질문하셨는데요. 이 부분에 대한 그 관심이 굉장히 많다라는 걸 이해하고 있습니다.
You asked for a guidance on loan growth. I understand that there is a great deal of interest regarding this certain matter.
요약해서 KakaoBank의 2023년 대출 성장은, 기본적으로 시장을 상회하는, 굉장히 높은 수준의 여신 성장을 저희 스스로 생각하고 있는데, 그것이 경제 환경을 고려했을 때 저희가 생각하는 수준은 약 10% 중반이라고 판단하고 있습니다.
In terms of loan growth for 2023, our baseline position is that we want to achieve significantly higher level of growth versus the broader market. Considering the macroeconomic environment, our internal view at the moment is somewhere within the mid 10% range.
시중은행들의 일반적인 관측이나 평가에 따르면 가계대출의 경우에는 금년도 성장률이 사실은 작년에 이어서 올해도 굉장히 낮은 수준의 성장 어찌 보면은 네거티브 성장까지도 경험할 수 있는 상황이라고 생각하고 있지만, KakaoBank는 다음과 같은 방식으로 대출 신장을 추진하려고 합니다.
I think the general observation or assessment from other commercial banks is that, there is limited potential for loan growth this year, especially for household loans. I think the view among the commercial banks is that following 2022, there will be very low growth in that space this year. Some potentially are looking at even negative growth. However, in contrast, we intend to continue to drive loan growth through the means that I will now explain. The first way will be to expand our home mortgage loan lineup, which as you mentioned, saw significant very steep growth starting last year. We will be working proactively to improve the product features and also reinforce the lineup.
As we outlined in our presentation deck, our coverage within this particular market is about 30%, but our plan is to grow that by more than double. We are in discussions now on possible ideas which include moving into the pre-sale subscription balance loan markets, also taking part in the Korea Housing Finance Corporation's policy Bogeumjari loan program as well, and expanding into types of housing properties like villas or multi-family units that we have currently, we have not previously served. Discussions on all three ideas are actually underway concurrently. For existing new products that we have already launched, including the business owner loans and also other unsecured credit loans, we will seek additional improvements to the product features and also new add-ons to the lineup.
Given our underlying capacity as a lending platform, we are actually receiving 1 million loan applications per month. This year, we have several major institutional changes lined up. Launch of the refinancing platform, for example, or loan comparison. The type of institutional changes, if anything, will actually drive the strength of our platform, and we believe that it will enhance our lending capacity significantly. Regarding your second question, how non-regular housing types like villas or multi-family units will be appraised for value. We have engaged in significant internal discussions about that topic, and we do understand that the existing valuation appraisal method is quite time and cost-consuming. We do understand that there are certain inconsistencies that may make it difficult to implement on a non-face-to-face basis.
We have been preparing to actively adopt AVM, the Automated Valuation Method, AVM. Anyway.
Model.
Model, sorry. The Automated Valuation Model that has already started initial discussions on the market. Of course, because we're still in the early stages of discussions, we do understand many considerations that have to be taken into account, and throughout the implementation process, many supplemental measures may be required. Yes. So AI or machine learning-based types of appraisal methods to value different types of collateral, what we think that although it is, it may be in the early stages now, it will eventually become mainstream. Internally, our view is that even if there are certain difficulties, we will actively seek out really dramatic ideas to implement this type of process effectively. Next, regarding our hiring plans.
As we mentioned at our earnings call throughout 2022, last year we were working very hard in preparing for new service and new product launches. When we did hiring, we focused on those relevant resources. Most of the new hires were in the planning, development, operational functions for these new services. To provide further context, up to 2021, we were focused on establishing the planning for new innovative products and services that were previously not available. We looked to plan out new types of financial services and also the platform side of our business as well.
Starting from 2022, when we already had the underlying plan in place and it was then about crystallizing further, refining the plans further, we focused on necessary personnel that could do that. Compared to 2022, the scale of our hiring in 2023 will be much reduced. We are thinking maybe 1/3, maybe 40% of previous year levels. Lastly, on the cost side. In terms of the one-off costs that we mentioned for the fourth quarter, it's a combined KRW 32 billion from labor expenses and also contributions into the employee welfare fund.
Thank you. We'll move on to the next question, please. The following question will be presented by Yafei Tian from Citi. Please go ahead with your question.
Thank you. I have two questions, if I may. The first one is on the interest margin. We saw quite strong expansion over there, in this new year with interest rates probably stable or even trending downwards a little bit. What is your expectation of margin trajectory from here, also in consideration of potential shift in your loan portfolio more towards secured loans? The second one is on credit costs. We have seen, you know, a little bit of pickup over there. You know, is this kind of what in line with what we are seeing at system-wide level, right? It has been quite a number of years that you've been operating in the credit space and building up operating history over there.
Just wanted to check with you know, what's your outlook on credit costs in this time of the much higher interest rate environment with the borrowers? Thank you.
첫 번째 질문에 대해서 답변드리겠습니다.
Okay. Let me take your first question.
말씀하신 것처럼 KakaoBank 내부의 의견도 금년도 금리 환경 자체는 현재 수준이 유지되거나 약간의 하향까지도 가능한 상황이라고 판단하고 있습니다.
As you said, we share the same opinion in terms of our outlook for interest rates this year. Overall, in terms of the rate environment this year, we believe, that current levels may be maintained and potentially, they may go down slightly even.
이런 판단에 기초해 보면은 KakaoBank 또한, 작년에 보였던 2.48%와 같은 NIM 수준이 현상을 유지하거나, 그렇지 않다고 하면 경우에 따라서는 약간의 조정이 있을 수 있다고 생각합니다. 하향 조정을 말씀드립니다.
That said, we think that, compared to the high NIM of 2.48% that we achieved last year, this year, we may expect status quo, so maintaining similar levels or depending on the circumstances, we expect that there might be a slight correction, which I mean, to the downside.
담보대출의 비중이 올라가는 상황이긴 해도 KakaoBank의 신용대출은 중저신용자 목표 비중이 있기 때문에 이 부분에서 NIM을 개선시키는 효과는 여전히 있다라고 판단하고 있습니다.
Although secured loans as a percentage are increasing, still, we have a certain target that we are working against in terms of increasing our mid credit loans. We expect to retain the effect of improvement to our NIM from the increase in mid credit loans.
이제 두 번째로 말씀하신 크레딧 코스트에 대해서 말씀드리겠습니다.
Moving on to your second question on credit costs.
말씀하신 것과 같은 이유로 저희는 크레딧 코스트가 4Q까지 상대적으로 상승하는 모습을 보여왔는데요. 이 부분은 2023년에도 동일하게 KakaoBank에게 주어진 시장과 정부에서 기대하고 계신 중저대출 신용자 비중의 확대가 예정되어 있어서 여전히 일정 부분 상승할 것이라고 판단하고 있습니다.
As you said, or for the reasons that you mentioned, we did see our credit costs increase up to the fourth quarter last year. Because there are certain expectations upon KakaoBank from the market and also the government, namely in terms of how much we should increase the portion of our mid-credit loans, same as for the previous answer, as we grow the portion of mid-credit loans going forward, we expect that the credit costs may continue to see upward pressure.
2024 이후에는 금리 환경이 지금보다 조금 더 안정이 된다고 하면 이러한 하향 조정된 금리 환경에서는 일정 정도의 시차를 두고 건전성에 긍정적인 방향으로 작동한다라는 점을 저희가 판단하고 있고, 중저신용자에 대한 포트폴리오도 신규 취급 물량이 감소하면서 상대적으로 안정적이 될 것이라서 2024 이후의 credit cost는 지금과 같은 상승세는 아닐 거라고 판단하고 있습니다.
However, we think that after 2024, the rate environment should gradually stabilize. With a bit of a time lagging effect, we think that there will be eventually a positive impact to overall soundness. As the new loans that make up our mid credit loan portfolio goes down or stabilizes beyond 2024, it should become more stable as well. We don't think that the credit cost will rise by as much as we have seen previously, again, after 2024.
마지막으로, 저희가 말씀드린 것과 같은 주택담보대출의 성장세가 굉장히 가팔라지게 된다면, 2024년 이후에 전체 포트폴리오의 대손 비용률도 따라서 하향 조정될 것이라고 기대하고 있습니다.
As a last point, if we do realize steep growth in our mortgage loans as we expect, then we think that will have the effect of lowering our credit costs for the entire loan portfolio significantly after 2024.
다음 질문 받겠습니다.
Okay. We will move on and accept the next question, please.
다음으로 질문해 주실 분은 한화투자증권의 김도하 님입니다. The following question will be presented by Doha Kim from Hanwha Investment & Securities. Please go ahead with your question.
네, 질문 기회 주셔서 감사합니다. 저 두 가지 궁금한데요. 먼저 저희 2Q 정도까지는 1Q까지는 중신용자 대출에 대한 연체율을 따로 줄였다가 장표에서 사라졌는데 아시는 것처럼 지금 최근 들어서는 수익성보다도 건전성에 더 관심도가 높고, 저희 NPR 증가 속도도 좀 빠르기 때문에 중저신용자 연체율 따로 숫자 한번 제공해 주시면 감사하겠고요. 그리고 저번에 저희 그 자사주 관련된 이야기를 한번 그 언급을 주셨었는데 지금 계산컨대 대손 준비금 한 900개 정도 추가로 전입하면 저희 미처분 이익잉여금 한 1,800개 정도가 남을 걸로 예상이 됩니다. 그래서 요 부분들에 대해서 혹시 이런 자사주 언급 주셨던 것에 대한 여 후속적인 정책의 제시가 있으시면 좀 공유 부탁드리겠습니다.
Thank you very much. I have two questions. First, I think, up to, I think 1st quarter of last year or so, you did, separately, outline the delinquency ratio specific to your mid-credit loans. I think since then, that number actually has been taken out from your deck. Nowadays we are seeing NPL increase significantly within the industry, and there's more emphasis placed on asset soundness over profitability. If you could provide the delinquency on the mid-credit loans, separately, we would appreciate it. I think the second question you regarded, I think, certain policies regarding treasury shares, assuming KRW 90 billion or so in additional loan loss provisioning, we can come up with, you know, KRW 180 billion in retained earnings.
When you calculate the profit available for dividends, what are the follow-up plans with or in that regard? Regarding the delinquency rate specific to our low to mid-credit loan portfolio, we actually do not disclose that number separately. We seek your kind understanding as we are exercising a bit of caution as it is subject to sensitivity in terms of communications with the market, also the supervisory regulators regarding asset soundness. To answer your second question regarding shareholder return policies, including our plans for the treasury shares. I think there was a similar question for us at the last conference call.
As you can see from our disclosure filing as of today, which is, of course on a preliminary basis, fortunately, we think that after closing for full year 2022, we should have profits available for dividends. However, there are various issues that have to be taken into account with regard to disclosure requirements. It is difficult for us to specify more right now in terms of the size of the profits, the exact method and the use or application right now. However, we are expecting the particulars to be deliberated and resolved upon in the near term through the BOD meetings. Once things are finalized, we will get the information to you through a disclosure. Next question, please.
The following question will be presented by Jun-sop Jung from NH Investment & Securities. Please go ahead with your question.
Yes, thank you for giving me the chance. I will also ask two questions. First, regarding platform, I think, it's quite positive that your user base appears to have increased both for your referral loan business and also the co-branded credit card business as well. I think, that kind of growth actually is not captured yet in the revenue numbers per se. If you look at platform revenue, compared to the third quarter, actually it had trended downward in the fourth quarter, while expenses climbed from Q3 to Q4. Of course, we may have to consider a bit of a time lag, but what were the factors behind the drop in platform revenue in the fourth quarter, and what is your expectations in terms of timing?
When do you think the platform side will start really to deliver meaningful contribution to your revenue? Second question regarding your NIM outlook that you explained further or previously. It may be that I missed something and not understanding, but could you elaborate and update us a little bit more? Over 2022, the average across the four quarters was 2.48%, and you saw quarter-on-quarter improvement last year. You said in terms of your NIM outlook for this year, it may maintain current levels if not decline slightly. If we assume that it's maintaining similar levels on a full year basis, does that mean that the NIM naturally will have to go down steeply from one quarter to the next quarter? Could you update us on that? Okay, let me cover your first question on platform business.
Overall last year, the platform business, as you know, a part of our overall fee business actually was significantly challenged. As you know, more than half of our platform revenue comes from the brokerage account opening fee income and also the referral loan income. Due to unfavorable market circumstances throughout last year, both revenue streams actually saw a significant drop year-on-year. Going forward, we don't think that the stock market will be as bad as it was in 2022. We think that the brokerage account opening service and related management fees will recover to a certain extent and deliver performance to a certain extent as well.
For the referral loan business, as I explained, there is a major institutional change ahead for this year regarding, for example, the refinancing platform, also the loan comparison service as well, which represent opportunities for us to expand the referral loan business further. We think that overall the business environment for these loans will be better this year versus 2022. We are examining different options in terms of growing our credit card co-branded business, trying to look at whether there's something that actually delivers stronger performance compared to the individual partnerships that we have been working on. Plus, we think 2023 will be the defining year when we are able to really ramp up our advertising revenue in a meaningful way.
Also, we believe that a vast part of our plans, in terms of the investment side of our platform will be ready by this year. That's why we think that it will really start to deliver revenue starting 2024 and onward. We think that the biggest or the best measure of our underlying platform capacity is actually the deposits and lending side of the business. I think the, on the deposit side, the fact that we have grown a significant user base is really giving us a lot of opportunity to further leverage our platform capacity, that user base can be tapped as we move into other revenue streams. Next, I will move on to the additional questions you had about NIM.
There are different components that are factored into determining NIM, of those, the most important is the interest rate environment, in our view. The policy rate adjustments by the Bank of Korea, for example, or other technical criteria, for example, the interest rate adjustments interval that we apply to our loan and deposit portfolio, these are all incorporated into the calculation of NIM. If you look at the market interest rate environment right now, you will know that the spread between the BOK policy rate versus the yield on financial bonds actually has actually held solid after the spreads narrowed.
It's hard to say what the directionality of NIM will be this year because it depends on whether the spread will actually normalize to more wider levels as before or maintain the current narrower level. If we assume that it goes back to more normal conditions as the spread widens, that potentially we could say we may maintain last year's NIM, if not improve upon them. If we assume that the spread maintains the current narrower band, then in that case, NIM would be maintained at last year's levels or see a slight decrease. Again, it's hard to say one way or the other at this point. With that, for lack of time, we will now conclude the fourth quarter earnings call for KakaoBank. Thank you to all of our investors and analysts for joining.