DGB Financial Group's 'Q3 Net Profit' Up 1.5% YoY ... Daegu Bank Down 14%

"Good Performance Considering Economic Downturn and Interest Rate Decline Conditions"

Daegu Bank Headquarters Building.

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongwook Park] DGB Financial Group (Chairman Kim Tae-o) announced on the 29th that the group's controlling shareholder net profit for the third quarter of 2020 reached 276.3 billion KRW. This figure represents a 1.5% increase compared to the same period last year.

Considering the difficult conditions such as the economic downturn caused by the novel coronavirus disease (COVID-19) and the decline in market interest rates, the group evaluates this as a favorable performance.

However, the cumulative net profit for the third quarter of DGB Daegu Bank (Bank President Lim Seong-hoon), the group's main affiliate, was 203.5 billion KRW, a 14% decrease compared to the same period last year. The bank explained that this was due to proactively setting aside additional loan loss provisions in the third quarter following the first half, in preparation for the prolonged COVID-19 pandemic and uncertain future economic conditions.

Daegu Bank's KRW loans increased by 8.3% compared to the end of last year. Asset quality indicators such as the non-performing loan ratio (decreased by 0.09 percentage points) and delinquency rate (increased by 0.05 percentage points) are also being well managed at low levels.

The third quarter net profit of non-bank affiliate Hi Investment & Securities recorded 85.9 billion KRW, an 81.6% increase compared to the same period last year. DGB Capital and DGB Life posted net profits of 28.3 billion KRW and 24.7 billion KRW, up 26.9% and 7.4%, respectively.