DGB Financial, Q1 Net Profit 123.5 Billion Won... Up 40% Due to Interest Income Recovery and Other Effects

Daegu Bank 91.5 Billion Won... 16.3% Increase Compared to Same Period Last Year

[Asia Economy Reporter Kim Hyo-jin] DGB Financial Group announced on the 29th that it recorded a net profit of 123.5 billion KRW in the first quarter of this year, representing a 40.0% increase compared to the same period last year.

DGB Financial explained that the performance improved significantly as Daegu Bank's interest income recovered with the stabilization of the declining market interest rates, and the profit growth trend continued in non-bank affiliates such as Hi Investment & Securities and DGB Capital.

One of the key management indicators for financial holding companies, the common equity tier 1 (CET1) capital ratio, improved by 2.80 percentage points year-on-year to 11.93%, reflecting both solid net profit achievement and the effect of recently becoming the first regional financial holding company to receive approval for the internal ratings-based approach.

Based on a stable capital ratio, DGB Financial plans to execute various strategies to enhance corporate value while doing its best to supply liquidity to the market going forward.

The first-quarter net profit of the core affiliate Daegu Bank was 91.5 billion KRW, up 16.3% year-on-year. The increase in interest income along with asset growth and the stable management of loan loss provisions amid regional economic recovery are interpreted as positive factors.

The net profit of non-bank affiliates also increased significantly. Hi Investment & Securities achieved 40.1 billion KRW, a sharp rise of 206.1% year-on-year due to the overall boom in the securities industry, and DGB Capital recorded 13.0 billion KRW, up 71.1% year-on-year thanks to steady asset growth.

A DGB Financial official said, “Since uncertainties remain regarding the pace of domestic and international economic recovery, we plan to focus more on asset soundness management in the future.”

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