[Alpha Biz=(Chicago) Reporter Paul Lee] Heungkuk Securities raised its target price of Kakao Bank from 31,000 won to 35,000 won. Kakao Bank's good capital capacity is expected to be used as the basis for the supply of various loan products and active shareholder return policies.
Heungkuk Securities said, "Despite the difficult business conditions, the number of Kakao Bank users has increased and both loans and receipts have continued to grow steadily."
Kakao Bank's net interest margin (NIM) rose 2.36% from the previous quarter due to a rise in the loan-to-deposit ratio. In addition, won loans in the fourth quarter of last year rose 4.3% from the previous quarter to 38.7 trillion won based on low-cost deposits.
"Kakao Bank's growth engine is mortgage loans, and its balance in the fourth quarter is about 9.1 trillion won," Heungkuk Securities said. "Kakao Bank's platform competitiveness is leading to a rise in loans."
AlphaBIZ 폴 리(hoondork1977@alphabiz.co.kr)
