IBK, 3Q Cumulative Net Profit Up 53.8%... "SME Loans Surpass 200 Trillion Won" (Comprehensive)

[Asia Economy Reporter Park Sun-mi] IBK Industrial Bank announced on the 26th that its consolidated cumulative net profit for the third quarter of 2021 increased by 53.8% compared to the same period last year to 1.8264 trillion KRW, and the bank's standalone net profit recorded 1.5237 trillion KRW.

The outstanding balance of loans to small and medium-sized enterprises (SMEs) reached 201.4 trillion KRW, an increase of 14.6 trillion KRW (7.8%) compared to the end of the previous year, surpassing 200 trillion KRW for the first time in the financial sector. The bank stated, "Fulfilling its role as a policy bank by acting as an umbrella for SMEs during crises has also contributed to these results."

Due to improved performance of client companies centered on export firms and the effects of government policies, the ratio of non-performing loans and total delinquency rates stood at a sound 0.85% and 0.29%, respectively. Furthermore, despite adequately setting aside loan loss provisions in preparation for future risks amid the ongoing COVID-19 situation, the loan loss expense ratio decreased by 0.28 percentage points from the same period last year to 0.35%.

In the case of general subsidiaries, thanks to efforts to diversify revenue sources such as investments last year, net profit increased by 67.9% compared to the same period last year, reaching 332.8 billion KRW. A representative from IBK explained, "We will continue to create a virtuous cycle structure that generates revenue opportunities through expanding the customer base along with operating support programs to help SMEs and small business owners overcome the COVID-19 crisis."