DGB Financial Q3 Cumulative Net Profit 417.5 Billion Won... 47% Increase YoY, Record High

Impact of Core Daegu Bank Profit Improvement and Others

[Asia Economy Reporter Kim Hyo-jin] DGB Financial Group announced on the 28th that its cumulative net profit for the third quarter reached 417.5 billion KRW, a 47% increase compared to the same period last year.

This result surpassed last year's annual net profit in just three quarters and represents the largest scale on a cumulative third-quarter basis in history.

The improvement in profits from its core affiliate, DGB Daegu Bank, along with a significant increase in non-interest income from non-bank affiliates such as Hi Investment & Securities and DGB Capital compared to the same period last year, drove the rise in performance, according to analysis.

DGB Daegu Bank's cumulative net profit for the third quarter was 285.6 billion KRW, up 40.3% from the same period last year. DGB Financial explained that this was due to an increase in interest income from balanced loan growth in both corporate and household sectors and a reduction in loan loss costs due to domestic and external economic recovery.

Key soundness indicators also improved, with the NPL ratio decreasing from 0.70% in the third quarter of last year to 0.53% this year, and the delinquency rate improving from 0.54% to 0.31%, indicating a positive outlook for future profits.

Hi Investment & Securities and DGB Capital posted cumulative net profits of 130.1 billion KRW and 61.5 billion KRW respectively during the same period, increasing by 51.5% and 117.3% compared to the previous year, surpassing last year's annual net profits.

Hi Investment & Securities expects brokerage income to be somewhat stagnant due to a recent reduction in stock trading volume, but anticipates maintaining strong profitability in its main revenue sources, the IB (Investment Banking) and PF (Project Financing) sectors.

DGB Capital also saw a 14% increase in operating assets compared to the same period last year, and with key soundness ratios maintained at low levels, it is expected to sustain favorable performance.

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