Busan Bank 133.2 Billion KRW · Gyeongnam Bank 86.5 Billion KRW
Also Announces Plan to Enhance Corporate Value
BNK Financial Group announced on the 30th that its net income attributable to owners of the parent company for the third quarter of this year reached 212.8 billion KRW. This represents a 4.15% increase compared to the same period last year (204.3 billion KRW). Although loan loss expenses increased due to the rise in non-performing assets such as real estate project financing (PF), BNK Financial explained that net income increased year-on-year due to growth in interest income and non-interest income related to securities.
The net income of BNK Busan Bank, a major subsidiary, was 133.2 billion KRW, up 5.06% from 126.8 billion KRW in the same period last year. BNK Gyeongnam Bank recorded net income of 86.5 billion KRW, an 11.01% increase from 77.9 billion KRW in the previous year.
The non-banking sector (capital, investment securities, etc.) showed net income of 28.0 billion KRW, down 5.4 billion KRW compared to the same period last year, due to an increase in provisions for non-performing assets despite an increase in securities-related income.
BNK Financial Group announced on the 30th that it recorded a net income attributable to owners of the parent company of 212.8 billion KRW for the third quarter of this year.
The group’s asset soundness indicator, the ratio of non-performing loans (NPL) to total loans, stood at 1.18%, down 4 basis points from the previous quarter, while the delinquency ratio rose 4 basis points to 0.98%. BNK Financial stated that this was influenced by changes in the evaluation criteria for real estate PF project viability and an increase in non-performing assets due to economic slowdown. The common equity tier 1 (CET1) ratio, a capital adequacy indicator, improved to 12.31%, up 15 basis points from the previous quarter, thanks to adequate profit realization and active risk-weighted assets (RWA) management.
KWON Jae-jung, CFO of BNK Financial Group, regarding the corporate value enhancement plan announced along with the third-quarter management performance, said, “We have set the core profitability target at an ROE of 10% and will do our best to enhance capital efficiency through stable RWA growth and strengthen the group’s fundamentals.” He added, “We have set the medium-term CET1 ratio target at 12.5% and will strive to achieve a shareholder return ratio of over 50% by 2027 by maximizing the proportion of share buybacks and cancellations within the scope of stable dividend increases per share.”
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