BNK Financial Group Reports Net Profit of 249.5 Billion KRW in Q1 This Year

Common Stock Capital Ratio Improved by 0.31%p from Previous Quarter to 12.00%

BNK Financial Group (Chairman Bin Dae-in) announced on the 30th through its earnings disclosure that the group's consolidated net income attributable to controlling interests for the first quarter of 2024 was 249.5 billion KRW (a decrease of 7.3 billion KRW compared to the same period last year).

During the same period, interest income and non-interest income increased by 9.1 billion KRW and 9.2 billion KRW respectively, while selling and administrative expenses decreased by 12.8 billion KRW, resulting in a 31.1 billion KRW increase in pre-provision profit.

However, due to an additional provision of 44.2 billion KRW to enhance loss absorption capacity, credit costs increased by 40.9 billion KRW compared to the previous year, causing a slight decrease in net income.

The banking sector recorded a net income of 226.4 billion KRW, down 3.9 billion KRW compared to the same period last year (Busan Bank down 20.1 billion KRW, Kyongnam Bank up 16.2 billion KRW).

The non-banking sector showed a net income of 54.7 billion KRW, a decrease of 3.7 billion KRW compared to the same period last year, despite increased profits related to securities, due to higher provision expenses. Investment securities (down 4.5 billion KRW) and asset management (down 0.4 billion KRW) saw declines in net income compared to the previous year, while capital (+1.9 billion KRW) and savings banks (+0.1 billion KRW) recorded increases.

The group’s asset quality indicators showed a non-performing loan ratio of 0.85% and a delinquency ratio of 0.90%, rising 12 basis points and 30 basis points respectively from the previous quarter. This reflects the deterioration in borrowers’ debt repayment ability due to economic slowdown and interest rate hikes, indicating the need for proactive asset quality management going forward.

Additionally, the group’s capital adequacy indicator, the common equity tier 1 (CET1) ratio, improved to 12.00%, up 31 basis points from the previous quarter, due to appropriate profit realization and active risk-weighted assets (RWA) management in preparation for downside economic risks. The improvement in the CET1 ratio signifies strengthened resources to prepare for future credit risk expansion and to increase shareholder returns.

BNK Financial Group CFO Vice President Kwon Jae-jung stated, “Based on the improved common equity tier 1 ratio, we plan to gradually increase dividends per share and further strengthen shareholder return policies by actively pursuing share buybacks and cancellations.”