BNK Financial, H1 Net Profit of 505.1 Billion KRW... 7.9% Increase YoY

Banks and Capital Perform Well... Investment Securities Lag Amid Weak Asset Market

[Asia Economy Reporter Yu Je-hoon] BNK Financial Group announced on the 28th that the group's consolidated net income for the first half of this year reached 505.1 billion KRW (controlling interest). This represents a 7.9% increase compared to the same period last year.

With most major affiliates showing improved first-half performance, the banking sector recorded net incomes of 245.6 billion KRW and 159.0 billion KRW at Busan Bank and Gyeongnam Bank, respectively, driven by profit growth from asset expansion and soundness management despite large-scale proactive provisioning reflecting future economic outlooks.

The capital division achieved a net income of 118.7 billion KRW, up 66.2%, due to increases in both interest and non-interest income and a decrease in provisioning expenses following improvements in soundness indicators.

Investment securities saw a 26.8% decrease in net income to 47.6 billion KRW, as increased fee income from the IB division was offset by expanded losses related to securities caused by rising bond yields and falling stock indices amid domestic and international financial market instability.

The group’s asset soundness indicators improved due to proactive risk management and efforts to reduce non-performing companies, stabilizing at historically low levels. The group’s ratio of non-performing loans (NPL) and delinquency rate fell by 0.07 percentage points (p) and 0.04 p, respectively, from the end of last year to 0.38% and 0.32%. The NPL coverage ratio also increased by 48.42% from the end of last year to 228.50%, sufficiently preparing for potential future defaults.

Jung Sung-jae, Head of Group Strategy and Finance at BNK Financial Group, stated, "Despite increased volatility in financial markets, we have shown solid performance in the first half. Our management focus for the second half will be on proactive group-level risk management to prepare for internal and external uncertainties, and we will fulfill our social responsibilities through various financial supports for small business owners and vulnerable groups affected by COVID-19."

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