IBK, Last Year's Net Profit Decreased 7% to 1.6 Trillion Won Due to Decline in Net Interest Margin

Net Income: Consolidated 1.6275 Trillion KRW, Separate 1.4017 Trillion KRW, Slowing YoY... Impact of Interest Rate Decline Intensifies

[Asia Economy Reporter Kwon Haeyoung] IBK Industrial Bank's net profit for last year decreased due to the decline in net interest margin (NIM) caused by falling interest rates.

IBK Industrial Bank announced on the 10th that its consolidated net profit, including subsidiaries, reached 1.6275 trillion KRW last year. This is a 7.7% decrease compared to the previous year (1.7642 trillion KRW). The bank's standalone net profit, excluding subsidiaries, was 1.4017 trillion KRW, down 7.2% from 1.511 trillion KRW the previous year.

An IBK Industrial Bank official explained, "The rapid decline in market interest rates caused the NIM to fall by 9 basis points annually, leading to a decrease in net profit," adding, "Despite unfavorable external conditions, we have strengthened our capacity for future growth and profit generation through steady expansion of SME loans and systematic soundness management."

The outstanding SME loan balance of IBK Industrial Bank increased by 11.1 trillion KRW (7.3%) from the end of the previous year to 162.7 trillion KRW. With a market share of 22.6%, the bank firmly maintained its position as a leader in SME finance. Due to loan asset growth, interest-earning assets rose by 17.8 trillion KRW compared to the previous year, reaching 256 trillion KRW.

The delinquency rate fell by 0.02 percentage points to 0.47%, and the ratio of non-performing loans including substandard loans decreased by 0.04 percentage points to 1.28%. The loan loss cost ratio recorded an all-time low of 0.67% at the end of the year, enhancing profit-generating capacity through improved soundness indicators.

An IBK Industrial Bank official stated, "Along with continuous support for SMEs, we plan to make every effort to improve profitability through innovative finance based on our SME financial expertise."

This content was produced with the assistance of AI translation services.