Announcement of Corporate Value Enhancement Plan
"Cancellation of Treasury Shares Worth 150 Billion KRW by 2027"
DGB Financial Group announced on the 28th that it achieved a net profit of 102.6 billion KRW in the third quarter of this year. Although this represents a 10.7% decrease compared to the same period last year, it is a 167.9% increase compared to the previous quarter. The group's main affiliate, iM Bank, recorded 132.4 billion KRW, marking the highest quarterly performance in its history. This was due to a shift to a decreasing trend in the provision for loan losses, resulting in a 35.8% increase compared to the same period last year.
The ratio of non-performing loans (NPL) improved by 0.11 percentage points compared to the previous quarter due to a decrease in bad loans, while the loan loss provision ratio increased by 21.1 percentage points, clearly indicating a recovery in the bank's asset soundness.
The Common Equity Tier 1 (CET1) ratio also rose by 0.76 percentage points from the previous quarter to 14.41%. DGB Financial added that efficient asset management and profit growth contributed to this improvement.
DGB Financial Group announced on the 28th that it achieved a net profit of 102.6 billion KRW in the third quarter of this year. Its main affiliate, iM Bank, recorded 132.4 billion KRW, marking the highest quarterly performance in its history.
Non-bank affiliates generally showed a decline in net profit. iM Securities reported a net loss of 34.585 billion KRW in the third quarter, an increase of 41.929 billion KRW compared to the second quarter. It was explained that iM Securities’ real estate project financing (PF) exposure is managed within 50% of its equity capital, and considering that about 500 billion KRW of loan loss provisions have been recognized over the past three years, the securities firm's performance is expected to recover significantly starting next year.
On the same day, DGB Financial Group Holdings announced a corporate value enhancement plan outlining strategies for profitability recovery, capital management, and shareholder return policies. They plan to retire approximately 150 billion KRW worth of treasury shares by 2027, which, based on the current stock price, would reduce the number of issued shares by more than 10%. Additionally, they set targets of a 9% return on equity (ROE), 12.3% CET1 ratio, and a 40% total shareholder return ratio by 2027. Ultimately, they aim to achieve a 10% ROE, 13% CET1 ratio, and 50% total shareholder return ratio.
A DGB Financial Group Holdings official stated, “We will thoroughly establish financial plans centered on the key corporate value enhancement indicators (ROE and CET1 ratio) announced this time and faithfully execute value-up initiatives. We will actively implement shareholder-friendly policies and responsible management to enhance shareholder value going forward.”
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