BNK Financial Group Reports Cumulative Net Profit of 763.2 Billion KRW for Q3

BNK Financial Group CI.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] BNK Financial Group announced on the 27th that it recorded a consolidated net profit of 258.1 billion KRW for the third quarter of 2022.

Major affiliates' performance: In the banking sector, despite a decrease in non-interest income due to expanded financial market uncertainties and large-scale preemptive provisioning, Busan Bank and Gyeongnam Bank achieved net profits of 390.4 billion KRW and 254.5 billion KRW respectively, driven by thorough soundness management and profit growth from asset expansion.

Capital saw increases in both interest income and non-interest income, and due to reduced provisioning from decreased retail credit handling and recovery of written-off loans, it achieved a net profit of 159.6 billion KRW, up 44.0% compared to the same period last year.

Investment Securities recorded a net profit of 61.5 billion KRW, down 37.3% year-on-year, as losses related to securities expanded due to rising bond yields and falling stock indices.

The group’s asset soundness indicators are stable due to proactive risk management and continuous efforts to reduce non-performing companies. The group’s non-performing loan ratio decreased by 0.03 percentage points from the end of the previous year to 0.42%, and the delinquency ratio remained unchanged at 0.36% compared to the end of the previous year.

The group’s non-performing loan coverage ratio increased by 22.55 percentage points from the end of the previous year to 202.63%, sufficiently preparing for potential future defaults.

The group’s capital adequacy indicator, the common equity tier 1 (CET1) ratio, rose by 0.28 percentage points from the previous quarter to 11.45%, maintaining a stable level due to increased net profit and decreased risk-weighted assets (RWA) from reduced securities and project financing loans.

Jung Sung-jae, Head of Group Strategy and Finance at BNK Financial Group, said, “Despite recent difficult domestic and international conditions, the group is showing favorable results through swift group-level responses. As authorities are mobilizing all capabilities to stabilize the financial market, we will also strive to maintain stable growth by proactively managing risks through sufficient provisioning and liquidity securing.”

Current Status of Major Management Indicators of BNK Financial Group

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