Improved Bank Capital Soundness... Total Capital Ratio Rises to 15.65%

0.29%P Increase Compared to 15.36% at the End of March

[Asia Economy Reporter Park Sun-mi] Despite the spread of COVID-19, the capital ratios of domestic banks have maintained an upward trend due to the realization of net profits, receiving evaluations for improved capital soundness.

According to the Financial Supervisory Service as of the end of June, the total capital ratio of domestic banks based on BIS standards recorded 15.65%. This is an increase of 0.29 percentage points compared to 15.36% at the end of March. The common equity tier 1 capital ratio and the tier 1 capital ratio were also recorded at 13.15% and 14.29%, respectively, rising 0.27 percentage points and 0.34 percentage points compared to the end of March.

Despite the increase in risk-weighted assets such as loan assets, capital increased at a greater rate due to expanded net profits, capital increases, and issuance of new capital securities.

Among financial holding companies, Hana Financial Group had the highest total capital ratio at 16.54%, while JB Financial Group had the lowest at 13.47%. Among banks, KakaoBank had the highest at 19.89%, followed by Jeju Bank (19.61%), Citibank (19.26%), KB Kookmin Bank (18.92%), and Shinhan Bank (18.74%). On the other hand, K Bank had the lowest at 10.91%.

As of the end of June, all domestic banks exceed the regulatory ratios (including capital conservation buffer and D-SIB additional capital). A Financial Supervisory Service official stated, "Uncertainties such as the spread of the COVID-19 Delta variant continue," adding, "We plan to induce sound capital management so that banks can maintain sufficient loss absorption capacity and stably perform their function of supplying funds to the real economy."

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