'Slowing Growth of Risk-Weighted Assets' Bank BIS Ratio at 15.85% at End of September, Up 0.09%p QoQ

All Domestic Banks Maintain Over 14% 'Stable'
Kakao, Woori, NongHyup Common Equity Tier 1 Ratios Decline
FSS Plans to Strengthen Capital Adequacy Supervision Against Volatility

The total capital ratio of domestic banks based on the Bank for International Settlements (BIS) as of the end of September rose by 0.09 percentage points (P) compared to the previous quarter, supported by a slowdown in the growth of risk-weighted assets and solid profits.

On the 28th, the Financial Supervisory Service announced that the BIS-based total capital ratio of domestic banks as of the end of September was 15.85%, up 0.09 percentage points from the end of the previous quarter. The common equity tier 1 capital ratio and the tier 1 capital ratio were 13.33% and 14.65%, respectively, each increasing by 0.15 percentage points from the previous quarter-end, while the simple tier 1 capital ratio rose by 0.04 percentage points to 6.79%. These figures include eight bank holding companies?Shinhan, Hana, KB, Woori, NongHyup, DGB, BNK, JB?and nine non-holding banks including SC, Citi, Industrial, Corporate, Export-Import, Suhyup, K, Kakao, and Toss.

All domestic banks maintained a total capital ratio above 14%, with Citi, Kakao, and SC maintaining very stable levels above 20%. Based on the common equity tier 1 capital ratio, Citi, Kakao, SC, and Toss were above 14%, while KB, K, Hana, and Shinhan were relatively high at over 13%.

Additionally, most banks such as DGB (0.55 percentage points), Hana (0.37 percentage points), and KB (0.25 percentage points) saw an increase in their common equity tier 1 capital ratio compared to the previous quarter-end, whereas three banks?Kakao (-0.31 percentage points), Woori (-0.08 percentage points), and NongHyup (-0.06 percentage points)?experienced a decline.

Meanwhile, the scale of risk asset growth for domestic banks decreased from 74.5 trillion KRW in Q1, 47.7 trillion KRW in Q2, to 19.8 trillion KRW in Q3 this year. On a consolidated basis, quarterly net profits reached 7 trillion KRW in Q1, 9 trillion KRW in Q2, and 8.2 trillion KRW in Q3.

Although the soundness indicators of domestic banks remain stable, the Financial Supervisory Service plans to strengthen capital adequacy supervision in preparation for volatility in domestic and international financial markets.

Yang Yoo-hyung, Head of the Sound Management Team, stated, "As volatility in domestic and international financial markets is expanding due to recent exchange rate increases, it is necessary to continuously enhance capital capacity to prepare for potential risks," adding, "We will strengthen capital adequacy supervision to ensure that banks maintain sufficient loss absorption capacity even in the event of deteriorating financial conditions."