DGB Financial Revises Mid-Term Management Plan... "Join Value-Up"

DGB Financial Group announced on the 12th that it has newly established a mid-term business plan to achieve qualitative growth befitting a commercial financial group and to participate in the financial company value-up program.

In response to changes in the management environment, such as the announcement of the capital market value-up program, the group completed a new mid-term business plan through the process of expanding the president-level meeting body under the chairmanship of the group chairman.

DGB Financial Group set its aspiration as a commercial financial group to be a “New Hybrid Banking Group.” The strategy is to provide customers with innovative products and convenient platforms from the internet bank, and to establish its identity as a regionally based commercial financial group with differentiated competitiveness through economies of scale as a commercial bank by spreading relational financial solutions, verified over 57 years as a regional bank, nationwide. To achieve this, it selected three core strategic tasks: “Leap” through maximizing capital efficiency, “Innovation” to become a commercial financial group, and “Co-prosperity” for social responsibility management.

In particular, even before the transition of iM Bank to a commercial bank, the bank-centered portfolio rebalancing with high capital efficiency had already begun, and despite profitability deterioration due to PF provisions, the common equity tier 1 capital ratio in the second quarter rose by 9 basis points compared to the previous quarter, showing a meaningful improvement effect.

Innovation tasks to secure identity as a commercial financial group include securing 5 million monthly active users (MAU) through digital innovation, systematic communication for iM brand management and brand value enhancement at the holding company level, expanding synergy among group companies, and managing group asset soundness.

To lay the foundation for pursuing these strategies, DGB Financial hired a vice president-level Chief Risk Officer (CRO) with extensive risk management experience earlier this year and established a risk supervision department within the holding company to manage asset soundness at the group level. For brand management at the holding company level, the ownership of the iM brand, which was previously held by the bank, was transferred to the holding company in March, establishing a foundation for group-level brand management.

The mid-term financial goals also clearly defined a strategy to strengthen substance through qualitative growth by setting financial targets that increase capital efficiency and capital rather than profit and asset growth. Specific financial targets according to this strategy will be announced through the value-up program disclosure in October after collecting opinions from stakeholders.

Hwang Byung-woo, Chairman of DGB Financial Group, stated, “We plan to prepare and announce the ‘2030 Vision’ within this year, which contains the vision system and strategy as a commercial financial group,” adding, “We will thoroughly manage risk factors and repay all stakeholders, including shareholders, with results that satisfy them through portfolio rebalancing and structural innovation.”