IBK Industrial Bank, Q1 Net Profit 500.5 Billion KRW... 10% Decrease YoY

[Asia Economy Reporter Haeyoung Kwon] IBK Industrial Bank's net profit for the first quarter of this year decreased by 10% compared to the same period last year. The decline in net interest margin (NIM) and the impact of the novel coronavirus disease (COVID-19) slowed the bank's earnings growth, and some subsidiaries experienced a decrease in profits.

IBK Industrial Bank announced on the 27th that its consolidated net profit, including subsidiaries, for the first quarter of 2020 was 500.5 billion KRW, down 10.1% from 557 billion KRW in the same period last year.

On a standalone basis excluding subsidiaries, IBK Industrial Bank recorded a net profit of 498.5 billion KRW, an increase of 3.2% compared to 483.2 billion KRW in the same period last year. However, the growth rate slowed compared to last year's 8.6%. The outstanding balance of SME loans increased by 3.8 trillion KRW (2.3%) from the end of last year to 166.5 trillion KRW, with a market share of 22.5%.

However, profit-generating capacity declined due to falling interest rates. IBK Industrial Bank's NIM for the first quarter was 1.69%, continuously decreasing from 1.9% in the first quarter, 1.89% in the second quarter, 1.81% in the third quarter, and 1.74% in the fourth quarter of last year.

The total delinquency rate was 0.52%, and the ratio of non-performing loans classified as substandard or below was 1.29%, maintaining similar levels to the same period last year in key soundness indicators.

Subsidiary performance mostly deteriorated. IBK Savings Bank and others saw profits decline compared to the same period last year due to issues with provisioning for loan losses, and IBK Investment & Securities also experienced reduced profits due to stock market instability.

An IBK Industrial Bank official stated, "Despite concerns about economic recession caused by the spread of COVID-19, we will achieve solid growth through steady support for SME loans and systematic soundness management."

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