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July 17, 2024

Toss Bank logs first monthly profit in July

PUBLISHED : August 13, 2023 - 09:41

UPDATED : August 13, 2023 - 09:41

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Toss Bank logo (Toss Bank)

Toss Bank, the internet-only banking arm of fintech giant Viva Republica, has reported its first monthly profit of approximately 1 billion won ($755,000) in July since its launch in October 2021, according to the lender on Friday.

Toss Bank traditionally discloses its net profits and losses only on a quarterly basis. The turnaround was first announced to Toss Bank employees through an internal company bulletin on Wednesday.

With the improving performance, both industry insiders and Toss Bank itself anticipate that the bank will continue to see profit in the third quarter.

“Considering the current cash flow and financial factors, unless significant external variables arise, we expect the profit trend observed in July to persist, leading to a profitable third quarter,” a Toss Bank official said.

The lender's net loss shrank to 28 billion won in the first quarter this year from 65.4 billion won a year earlier. Its second-quarter result is expected to be released at the end of August.

Toss Bank's user base has displayed a consistent upward trajectory. As of the end of July, the total number of clients had surpassed the 7 million mark.

Toss Bank joins the ranks of Korea's two other internet-only banks — Kakao Bank and K-Bank — that have also swung into black.

K-Bank, established in April 2017, reached the milestone after four years, during the second quarter of 2021.

Kakao Bank, the leading internet-only bank among the trio in terms of total assets, recorded profits in the first quarter of 2019. It took Kakao Bank roughly 20 months to achieve the feat after launching in July 2017.

Toss was the last of the three lenders to secure regulatory approval for commencing operations.

The nod from the Financial Services Commission was granted to the consortium spearheaded by Viva Republica, a prominent South Korean fintech firm, in 2021.

By Song Seung-hyun (ssh@heraldcorp.com)

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