K Bank Q3 Net Profit 13.2 Billion KRW... 48.4% Decrease YoY

Interest and Non-Interest Income Increased but
Maximum Scale Provisions Set Aside

K Bank's net profit for the third quarter of this year recorded 13.2 billion KRW, a decrease of about 48.4% compared to 25.6 billion KRW a year ago.

According to K Bank on the 14th, K Bank's interest income increased by 14.7% compared to the same period last year, reaching 115.6 billion KRW. K Bank increased the proportion of mortgage loans through lowering interest rates on refinancing loan products and launching Jeonse deposit return loans. The proportion of mortgage loans in K Bank's total loans expanded from 19.9% at the end of the third quarter last year to 32.9% at the end of this year's third quarter.

Non-interest income in the third quarter of this year was 7.8 billion KRW, increasing by more than 7 billion KRW compared to 0.5 billion KRW a year ago. ▲Increased MMF management income ▲Launch of KB partnership credit card ▲Launch of discount transportation card ▲Car/motorcycle insurance advertising partnership ▲Launch of Donghaeng Lottery easy recharge service contributed to this growth.

K Bank stated that despite the increase in interest and non-interest income, net profit decreased due to provisions. K Bank's provision amount in the third quarter of this year was about 63 billion KRW, nearly double the 32.1 billion KRW in the same period last year, to prepare in advance for the rise in delinquency rates due to the expansion of mid- to low-credit loans. The proportion of mid- to low-credit loans among total unsecured loans at the end of the third quarter was 26.5%, up 2.5 percentage points from 24.0% at the end of the previous quarter.

K Bank's delinquency rate at the end of the third quarter was 0.9%, the BIS ratio was 13.91%, and the net interest margin (NIM) was 2.30%.

A K Bank official said, “In the third quarter, we expanded the scope of non-face-to-face finance by launching various non-face-to-face lifestyle-oriented innovative products such as living accounts, group accounts, and auto loans,” adding, “We will do our best to fulfill the bank’s social responsibility through expanding mid- to low-credit loans and active social contribution activities in the future.”