BNK Financial Group Reports Net Profit of 310.9 Billion KRW in First Half of This Year

Offsetting Decrease in Interest Income with Strong Non-Interest Income

[Asia Economy Yeongnam Reporting Headquarters Reporter Kang Woo-kwon] BNK Financial Group announced on the 27th through its earnings report that it achieved a group net profit of 310.9 billion KRW in the first half of 2020.

Although this represents an 11.5% decrease compared to the same period last year, the net profit for the 2nd quarter was 173.2 billion KRW, showing an increase from the previous quarter. Despite the economic situation caused by the novel coronavirus infection (COVID-19), the group posted solid results due to strong non-interest income.

By segment, interest income recorded 1.0741 trillion KRW, down 3.3% from the same period last year due to the Bank of Korea’s base rate cut. However, fee income surged 57.4% compared to the same period last year, surpassing 196.6 billion KRW, driven by strong project financing (PF) fees from affiliates and increased brokerage fees from stock and bond trading.

Meanwhile, loan loss provisions for the 2nd quarter were 18.21 billion KRW, down 2% from the same period last year, despite proactive COVID-19 related provisions of 25.5 billion KRW. This was due to stable provision management resulting from improved asset quality.

Net profits for the first half by affiliates showed Busan Bank and Gyeongnam Bank achieving 178.1 billion KRW and 104.6 billion KRW respectively, exceeding planned levels due to increased non-interest income.

Major non-bank affiliates BNK Capital and BNK Investment & Securities also showed notable improvements, posting net profits of 44.8 billion KRW and 22.5 billion KRW respectively, up 14.0% and 77.2% from the same period last year, driven by increased IB fees and brokerage fees from stock and bond trading.

Kim Ji-wan, Chairman of BNK Financial Group, emphasized, “Going forward, we will continue to strive to establish an ESG management system that meets global standards so that we can grow together with the local community.”