Common Equity Tier 1 Ratio Improves to 12.56%
All Treasury Shares Acquired in the First Half to Be Cancelled
Quarterly Cash Dividend and Additional KRW 60 Billion
Share Buyback and Cancellation Planned for the Second Half
BNK Financial Group announced that its consolidated net profit attributable to controlling interests for the first half of this year was KRW 475.8 billion. This represents a 3.4% decrease compared to the same period last year. BNK Financial explained that the decline in net profit was due to a decrease in both interest income and non-interest income, as well as an increase in credit loss expenses, each contributing independently to the year-on-year decrease.
The banking sector recorded a net profit of KRW 410.2 billion, a decrease of KRW 45.5 billion compared to the same period last year. In contrast, the non-banking sector posted a net profit of KRW 108.8 billion, an increase of KRW 12.7 billion year-on-year.
The group’s asset quality indicator, the ratio of non-performing loans, stood at 1.62%, improving by 7 basis points (bp; 1bp=0.01%) compared to the previous quarter. However, the delinquency rate rose by 27bp quarter-on-quarter to 1.39%. This reflects an increase in non-performing assets due to the economic slowdown, indicating the need for continued asset quality management going forward.
The common equity tier 1 (CET1) capital ratio, an indicator of capital adequacy, increased by 31bp from the previous quarter to 12.56%, driven by solid profit realization and proactive risk-weighted asset (RWA) management. The group explained that the continued improvement in the CET1 ratio has established a foundation for responding to potential credit risk expansion and for enhancing shareholder returns in the future.
At its board meeting on July 31, BNK Financial Group resolved to enhance shareholder value by declaring a quarterly dividend of KRW 120 per share and approving a share buyback and cancellation program worth KRW 60 billion for the second half of the year.
Kwon Jaejung, Vice President of BNK Financial Group, stated, "We will proceed with the cancellation of all treasury shares acquired in the first half of this year (approximately 3.96 million shares), and in accordance with the board resolution, we plan to additionally implement a quarterly dividend and a KRW 60 billion share buyback and cancellation in the second half of the year." He added, "We will continue to do our utmost to expand our shareholder return policy based on the improved capital ratio."
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