BNK Financial, Net Profit of 791 Billion KRW Last Year... 52% Increase YoY

Non-Bank Sector Accounts for 31.4% of Net Income "Fruits of Revenue Structure Diversification"

[Asia Economy Reporter Yoo Je-hoon] BNK Financial Group announced on the 10th that its consolidated net profit for last year reached 791 billion KRW, a 52.3% increase compared to the same period the previous year. According to BNK Financial Group, amid significant improvements in the performance of major subsidiaries, profit growth driven by asset expansion and reduced loan loss expenses due to soundness management were observed. Despite increased costs from voluntary retirement, Busan Bank and Kyongnam Bank each achieved net profits of 402.6 billion KRW and 230.6 billion KRW, respectively.

The non-bank subsidiaries also showed substantial growth. BNK Capital posted a net profit of 133.2 billion KRW due to favorable market conditions, and BNK Investment & Securities recorded a net profit of 116.2 billion KRW, more than doubling from the previous year, driven by increased fees in the investment banking (IB) sector and gains related to securities. Consequently, the proportion of net profit from the non-bank sector expanded to 31.4%.

BNK Financial Group stated, "This is the result of the group's steady strategic investments to strengthen the non-bank sector," adding, "The increase in the share of non-bank net profit within the group from 15.6% in 2017 to 31.4% last year indicates that the group's revenue structure is diversifying."

Furthermore, BNK Financial Group's asset soundness indicators improved to record-low levels due to continuous risk management and efforts to reduce non-performing companies. The group's non-performing loan ratio and delinquency ratio fell by 0.25 percentage points and 0.12 percentage points from the previous year, recording 0.45% and 0.36%, respectively. The group's non-performing loan coverage ratio also improved by 56.50% year-on-year to 180.08%.

The common equity tier 1 capital ratio, an indicator of capital adequacy, rose by 1.22 percentage points from the previous year to 11.02%, maintaining a stable level.

Meanwhile, at the board meeting held that day, a cash dividend of 560 KRW per share was approved, with a payout ratio of 23% and a dividend yield of 6.3% announced.

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