BNK Financial Group Reports 810.2 Billion KRW Net Profit Last Year, Up 2.4% Year-on-Year

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] BNK Financial Group recorded a consolidated net profit attributable to controlling interests of 810.2 billion KRW for 2022.

On the 2nd, BNK Financial Group announced in its earnings release that the group’s consolidated net profit increased by 2.4% from 791 billion KRW in the previous year to 810.2 billion KRW.

Looking at the performance of major affiliates, in the banking sector, despite a decrease in non-interest income due to expanded financial market uncertainties and large-scale preemptive provisioning, Busan Bank and Kyongnam Bank achieved net profits of 455.8 billion KRW and 279 billion KRW respectively, driven by thorough soundness management and profit growth from asset expansion.

Capital saw increases in both interest income and non-interest income, and due to improved asset quality and a reduction in retail credit handling, provisioning expenses decreased, resulting in a 28.4% increase from the previous year to a net profit of 171 billion KRW.

Investment securities recorded a net profit of 57.3 billion KRW, down 50.6% year-on-year, as losses related to securities expanded due to rising bond yields and falling stock indices.

The group’s asset soundness indicators showed stability through proactive risk management and continuous efforts to reduce non-performing companies. The group’s ratio of non-performing loans to total loans remained steady at 0.45%, the same as the previous year, while the delinquency ratio increased by 0.04 percentage points to 0.40% compared to the previous year.

The group’s coverage ratio for non-performing loans also rose by 39.24 percentage points year-on-year to 219.32%, demonstrating sufficient preparation for potential future defaults.

BNK Financial Group CI.

In particular, the group’s common equity tier 1 capital ratio, a key capital adequacy indicator, increased by 0.19 percentage points from the previous year to 11.21%, maintaining a stable level.

While most listed holding companies are expected to see a decline in their common equity tier 1 capital ratios compared to the previous year, BNK Financial Group improved due to proactive risk management in preparation for economic downturns.

At the board meeting held that day, a dividend payout ratio of 25.0%, a dividend yield of 8.6%, and a cash dividend of 625 KRW per share were approved, along with a decision to repurchase treasury shares worth approximately 16 billion KRW, equivalent to 2% of net profit.

A BNK Financial Group official stated, “Considering the difficult domestic and international conditions this year, we have planned a net profit target of 870 billion KRW focusing on profitability through stable growth.”

He added, “Along with efforts to achieve this target, we will strengthen shareholder return policies such as increasing the dividend payout ratio and repurchasing and canceling treasury shares so that the benefits of improved performance can be returned to shareholders, and we will do our best to raise the undervalued stock price to a level that reflects the corporate value.”