DGB Financial, Q3 Cumulative Net Profit 276.3 Billion KRW... Up 1.5%

[Asia Economy Reporter Kim Min-young] DGB Financial Group announced on the 29th through its earnings report that its cumulative net profit for the third quarter of this year reached 276.3 billion KRW, a 1.5% increase compared to the same period last year.

A DGB Financial official explained, "The main reason for achieving favorable net profit despite the challenging business environment caused by the economic downturn due to the novel coronavirus disease (COVID-19) and the decline in market interest rates is the result of strengthening non-bank affiliates such as Hi Investment & Securities and DGB Capital."

The cumulative net profit of DGB Daegu Bank, the group's core affiliate, for the third quarter was 203.5 billion KRW, a 14.0% decrease compared to the same period last year.

This was because, in preparation for the prolonged COVID-19 pandemic and uncertain future economy, additional proactive loan loss provisions were set aside in the third quarter following the first half, and such provisioning is expected to greatly help future asset soundness management.

Despite the economic downturn, Daegu Bank's KRW loans increased by 8.3% compared to the end of the previous year, and both the ratio of non-performing loans and delinquency rate were well managed at low levels, so performance improvement is expected once the impact of COVID-19 stabilizes.

The cumulative net profit of non-bank affiliate Hi Investment & Securities for the third quarter recorded 85.9 billion KRW, an 81.6% increase compared to the same period last year, while DGB Capital and DGB Life also improved by 26.9% and 7.4%, achieving 28.3 billion KRW and 24.7 billion KRW, respectively.

A DGB Financial official stated, "We will focus more on managing capital adequacy and soundness in preparation for domestic and international economic uncertainties."

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