BNK Financial Group Reports Q1 Net Profit of KRW 166.6 Billion, Down 33.2% Year-on-Year

BNK Financial Group announced on April 25 that its consolidated net profit attributable to controlling interests for the first quarter of this year reached KRW 166.6 billion. This figure represents a decrease of KRW 82.9 billion (33.2%) compared to the same period last year. BNK Financial explained that while non-interest income, including profits related to securities, increased, a decline in interest income and a rise in credit loss expenses had an impact.

The banking sector recorded a net profit of KRW 155 billion, down KRW 71.4 billion from the same period last year (Busan Bank: down KRW 39.6 billion, Kyongnam Bank: down KRW 31.8 billion). The non-banking sector posted a net profit of KRW 34.3 billion, a decrease of KRW 20.4 billion year-on-year.

The group’s asset quality indicator, the ratio of substandard and below loans, stood at 1.69%, and the delinquency rate was 1.12%, up 0.38 percentage points and 0.18 percentage points, respectively, from the previous quarter. This reflected an increase in non-performing loans due to the economic slowdown. The common equity tier 1 (CET1) ratio, an indicator of capital adequacy, was 12.26%, up 26 basis points from the same period last year, thanks to solid profit realization and proactive risk-weighted asset (RWA) management. The group plans to continue improving the CET1 ratio to prepare for a potential expansion of credit risk and to lay the groundwork for increased shareholder returns.

Meanwhile, at a board meeting held on the same day, BNK Financial Group resolved to pay its first-ever quarterly cash dividend of KRW 120 per share in order to enhance shareholder value.

BNK Financial Group CFO Kwon Jaejung stated, "Going forward, our top priorities will be restoring asset quality and improving performance," adding, "At the same time, we will do our utmost to repay the market’s trust by working to improve our loan portfolio and enhance productivity as part of our efforts to strengthen the fundamentals of the company."