BNK Financial Group Reports Cumulative Net Profit of 802.7 Billion KRW Last Year

KRW 650 Per Share Cash Dividend (Including KRW 200 Interim Dividend, Payout Ratio 26%)
Decision to Repurchase and Retire Treasury Shares Worth KRW 40 Billion, Equivalent to 5% of Net Income

BNK Financial Group (Chairman Bin Dae-in) announced on the 6th through its earnings disclosure that the group's consolidated net income attributable to controlling interests for 2024 reached KRW 802.7 billion (an increase of KRW 162.9 billion, +25.5% year-over-year).

The increase in net income compared to the previous year was driven by growth in interest income and non-interest income such as securities-related gains, along with a decrease in loan loss provisions including PF reserves.

The banking sector recorded a net income of KRW 771.8 billion, up KRW 135.6 billion year-over-year (Busan Bank +KRW 76.4 billion, Kyongnam Bank +KRW 59.2 billion), while the non-banking sector posted a net income of KRW 167.9 billion, an increase of KRW 24.9 billion year-over-year (Capital +KRW 18.2 billion, Investment Securities +KRW 5.2 billion, Savings Bank +KRW 0.8 billion, Asset Management +KRW 1.4 billion).

The group’s asset quality indicator, the ratio of non-performing loans classified as substandard or below, remained steady at 1.18% compared to the previous quarter, and the delinquency ratio improved by 4 basis points to 0.94%. However, due to expected increases in credit deterioration amid an economic slowdown, continuous asset quality management will be maintained.

Additionally, the group’s capital adequacy indicator, the common equity tier 1 (CET1) ratio, rose by 4 basis points quarter-over-quarter to 12.35%, despite year-end dividends, thanks to adequate profit realization and proactive risk-weighted asset (RWA) management. Through continuous improvement of the CET1 ratio, the group has laid the foundation for preparing against future credit risk expansion and expanding shareholder returns.

At the board meeting held that day, a cash dividend payout ratio of 26% and a dividend of KRW 650 per share (including an interim dividend of KRW 200) were approved, along with a decision to repurchase and retire treasury shares worth KRW 40 billion, equivalent to 5% of net income.

BNK Financial Group CFO, Vice President Kwon Jae-jung, stated, “In line with our announced plan to enhance corporate value, we plan to repurchase and retire more treasury shares in the first half of this year than the entire amount conducted last year (KRW 33 billion) to expand shareholder returns. We will continue to make our best efforts to maximize the proportion of treasury share repurchases and retirements within the scope of stable dividend increases per share to further expand our shareholder return policy.”