Both Banking and Non-Banking Sectors OK! ... BNK Financial Group Reports 505.1 Billion KRW Net Profit in First Half
Core Profit Increased by 37.1 Billion KRW (7.9%) Year-on-Year Due to Enhanced Cost Management
[Asia Economy Yeongnam Reporting Headquarters Reporter Kim Yong-woo] BNK Financial Group surpassed 500 billion KRW in net profit for the first half of the year, showing improved performance across both financial and non-financial sectors.
BNK Financial Group announced on the 28th that it recorded a consolidated net profit attributable to controlling interests of 505.1 billion KRW for the first half of 2022.
Most major affiliates showed improved first-half results compared to the same period last year. Despite proactively setting aside large-scale provisions reflecting future economic outlooks, the banking sector saw increased profits due to soundness management and asset growth, with Busan Bank and Gyeongnam Bank posting net profits of 245.6 billion KRW and 159 billion KRW, respectively.
Capital saw increases in both interest income and non-interest income. Due to a decrease in provision expenses following improvements in soundness indicators, it achieved a net profit of 118.7 billion KRW, up 66.2% from the same period last year.
Investment securities experienced growth in fee income from the IB division; however, losses related to securities expanded due to rising bond yields and falling stock indices amid domestic and international financial market instability, resulting in a 26.8% decrease from the previous year to 47.6 billion KRW.
The group’s asset soundness indicators improved through proactive risk management and efforts to reduce non-performing companies, stabilizing at historically low levels. The group’s non-performing loan ratio and delinquency rate fell by 0.07 percentage points and 0.04 percentage points from the end of last year to 0.38% and 0.32%, respectively.
The group’s non-performing loan coverage ratio also increased by 48.42% from the end of last year to 228.50%, indicating sufficient preparation against potential future defaults.
The group’s capital adequacy indicator, the common equity tier 1 (CET1) ratio, rose by 0.15 percentage points from the end of last year to 11.17%, reflecting increased net profit and systematic risk-weighted asset (RWA) management, maintaining a stable level.
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Jung Sung-jae, Head of Group Strategy and Finance at BNK Financial Group, stated, “Despite increased volatility in financial markets, we have shown solid results 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. We will also fulfill our social responsibilities by providing various financial supports to small business owners and vulnerable groups affected by COVID-19.”
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