IBK Industrial Bank's net profit for the first half of the year decreased due to increased currency evaluation losses and higher loan loss provisions. However, the bank's outstanding loans to small and medium-sized enterprises (SMEs) surpassed 270 trillion won for the first time, marking a record market share in SME financing.
On July 27, the bank announced that its consolidated net profit for the first half of the year was 1.44 trillion won, a 4.4% decline compared to the same period last year. The bank's standalone net profit was 1.21 trillion won, down 9.0%, while the second-quarter net profit was 689.5 billion won, an 8.5% decrease from the previous quarter.
An IBK official stated, "While interest income improved due to growth in interest-earning assets and efforts to reduce funding costs, the increase in currency evaluation losses due to soaring exchange rates and higher loan loss provisions impacted net profit."
The bank's soundness indicators were managed stably. The loan loss ratio rose to 0.46%, an increase of 0.05 percentage points from the same period last year, but the ratio of non-performing loans decreased by 0.01 percentage points to 1.27% compared to the end of the previous year.
Additionally, the bank actively supplied productive financing, resulting in an 8.1 trillion won (3.1%) increase in the SME loan balance compared to the end of last year, achieving a record market share of 24.6% in the SME financing market.
Among its subsidiaries, IBK Capital contributed the most with a net profit of 126.4 billion won. IBK Investment Securities reported a 21.2% increase to 30.3 billion won, while IBK Asset Management saw a 106.3% rise to 9.9 billion won. In contrast, IBK Savings Bank recorded a net loss of 5.3 billion won.
Furthermore, the bank announced it would implement quarterly dividends for the first time in its history alongside its second-quarter results. The dividend record date is set for July 31, with a payout of 210 won per share.
An IBK official remarked, "Through organizational restructuring in the second half of the year, we aim to secure momentum for supporting productive finance and the AI transformation, while also enhancing shareholder returns through our first-ever quarterly dividend."
On July 27, the bank announced that its consolidated net profit for the first half of the year was 1.44 trillion won, a 4.4% decline compared to the same period last year. The bank's standalone net profit was 1.21 trillion won, down 9.0%, while the second-quarter net profit was 689.5 billion won, an 8.5% decrease from the previous quarter.
An IBK official stated, "While interest income improved due to growth in interest-earning assets and efforts to reduce funding costs, the increase in currency evaluation losses due to soaring exchange rates and higher loan loss provisions impacted net profit."
The bank's soundness indicators were managed stably. The loan loss ratio rose to 0.46%, an increase of 0.05 percentage points from the same period last year, but the ratio of non-performing loans decreased by 0.01 percentage points to 1.27% compared to the end of the previous year.
Additionally, the bank actively supplied productive financing, resulting in an 8.1 trillion won (3.1%) increase in the SME loan balance compared to the end of last year, achieving a record market share of 24.6% in the SME financing market.
Among its subsidiaries, IBK Capital contributed the most with a net profit of 126.4 billion won. IBK Investment Securities reported a 21.2% increase to 30.3 billion won, while IBK Asset Management saw a 106.3% rise to 9.9 billion won. In contrast, IBK Savings Bank recorded a net loss of 5.3 billion won.
Furthermore, the bank announced it would implement quarterly dividends for the first time in its history alongside its second-quarter results. The dividend record date is set for July 31, with a payout of 210 won per share.
An IBK official remarked, "Through organizational restructuring in the second half of the year, we aim to secure momentum for supporting productive finance and the AI transformation, while also enhancing shareholder returns through our first-ever quarterly dividend."
* This article has been translated by AI.
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