Regional Financial Holdings Achieve 'Record-Breaking' Performance... Q3 Cumulative Net Profit Surpasses Last Year

BNK Financial and Others Surpass Last Year's Total Net Profit in Just Three Quarters

[Asia Economy Reporter Kim Hyo-jin] Regional financial holding companies posted 'record-breaking' earnings in the third quarter of this year. This is attributed to the government's regulations dispersing loan demand from commercial banks and a significant increase in profits from non-bank affiliates.

According to the financial sector on the 29th, BNK Financial Group recorded a cumulative net profit of 743.4 billion KRW in the third quarter. This is an increase of 296 billion KRW (66.1%) compared to the same period last year. The group exceeded last year's total net profit within just three quarters this year.

The remarkable performance of BNK's core affiliates, BNK Busan Bank and BNK Gyeongnam Bank, stands out. The cumulative net profits of Busan Bank and Gyeongnam Bank for the third quarter were 368.1 billion KRW and 228.9 billion KRW respectively, up 42.8% and 54.6% compared to the same period last year.

For the non-bank affiliate Capital, net profit increased by 47 billion KRW to 110.8 billion KRW compared to the same period last year. Investment Securities supported the earnings growth by posting a net profit of 98.1 billion KRW, up 62 billion KRW from the previous year, driven by increased fee income in the IB division and gains related to securities.

DGB Financial Group also saw its cumulative net profit for the third quarter rise 47.0% year-on-year to 417.5 billion KRW, surpassing last year's net profit within three quarters. This was due to improved profits at its core affiliate Daegu Bank and significant increases in non-interest income from non-bank affiliates such as Hi Investment & Securities and Capital.

Daegu Bank's cumulative net profit for the third quarter was 285.6 billion KRW, up 40.3% from the previous year. Hi Investment & Securities and Capital posted cumulative net profits of 130.1 billion KRW and 61.5 billion KRW respectively, increasing 51.5% and 117.3% year-on-year, exceeding last year's annual net profits.

JB Financial Group recorded a cumulative net profit of 412.4 billion KRW in the third quarter, a 38.3% increase from the same period last year, marking the highest ever for the third quarter. The core affiliate Jeonbuk Bank posted a third-quarter net profit of 119.5 billion KRW, up 31.7% year-on-year, while Gwangju Bank recorded 163.3 billion KRW, an 18.6% increase compared to the previous year.

Soundness Indicators such as NPL Ratios Also 'Clear'

Key soundness indicators also continued to show favorable trends. BNK Financial Group's third-quarter non-performing loan (NPL) ratio and delinquency rate fell by 0.48 percentage points and 0.28 percentage points year-on-year to 0.46% and 0.33%, respectively.

DGB Financial Group's NPL ratio dropped 0.17 percentage points to 0.53%, and the delinquency rate decreased by 0.23 percentage points to 0.31%. JB Financial Group's NPL ratio improved by 0.06 percentage points to 0.62%, and the delinquency rate improved by 0.02 percentage points to 0.58% compared to the same period last year.

A financial sector official said, "While the increase in net profit is noteworthy, the fact that soundness is well managed raises expectations for future performance management."

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