BNK Financial Group, 2Q Net Profit 242.8 Billion KRW... Up 19.4% YoY

BNK Financial Group announced on the 31st that its consolidated net profit for the second quarter increased by KRW 39.4 billion (19.4%) year-on-year to KRW 242.8 billion. The net profit for the first half of the year was KRW 492.3 billion, up KRW 32.1 billion (7.0%).

The banking sector recorded a net profit of KRW 229.3 billion, an increase of KRW 32.1 billion compared to the same period last year (Busan Bank KRW 5.3 billion, Kyongnam Bank KRW 26.8 billion). Despite gains related to securities, the non-banking sector's net profit remained at KRW 41.4 billion, down KRW 0.8 billion year-on-year due to an increase in provisions caused by rising non-performing assets. By affiliate, BNK Investment & Securities saw its net profit decrease by KRW 7.1 billion compared to the same period last year, while BNK Capital, BNK Savings Bank, and BNK Asset Management each increased by KRW 3.8 billion, KRW 2.2 billion, and KRW 0.1 billion respectively.

The group’s asset soundness indicators showed a non-performing loan ratio of 1.22% and a delinquency ratio of 0.94%, rising by 37 basis points (1bp = 0.01%) and 4 basis points respectively from the previous quarter. BNK Financial stated, "This reflects the changes in real estate project financing (PF) business evaluation standards and an increase in defaults due to economic slowdown, 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 by 16 basis points from the previous quarter to 12.16%, thanks to appropriate profit realization and active risk-weighted assets (RWA) management in preparation for downside economic risks. BNK explained that continuous improvement in the CET1 ratio lays the foundation for future credit risk expansion preparedness and enhanced shareholder returns.

Jaejoong Kwon, Vice Chairman of BNK Financial Group, stated, “To enhance shareholder value, we have completed the cancellation of all treasury shares (approximately 1.65 million shares) purchased in the first half of this year, and plan to conduct an interim dividend (KRW 200 per share) and treasury share repurchase and cancellation worth KRW 20 billion in the second half.” He added, “We will continue to make our best efforts to expand shareholder return policies, including sustained increases in cash dividends and active treasury share repurchases and cancellations.”