BNK Financial Group Reports Q1 Net Profit of 256.8 Billion KRW, Up 19.5 Billion KRW Year-on-Year

Common Stock Capital Ratio Rises 0.29%p from Year-End to 11.50%

BNK Financial Group posted a net profit of 256.8 billion KRW in the first quarter of this year.

BNK Financial Group (Chairman Bin Dae-in) announced on the 27th through its earnings report that the group's consolidated net profit attributable to controlling interests for the first quarter of 2023 recorded 256.8 billion KRW, an increase of 19.5 billion KRW compared to the same period last year.

By major affiliates, in the banking sector, despite a decrease in non-interest income such as PF fee income and the proactive provision of reserves to strengthen loss absorption capacity, Busan Bank and Gyeongnam Bank posted net profits of 145.3 billion KRW and 85.0 billion KRW respectively, due to profit growth from soundness management and asset growth.

Among the non-banking sectors, Capital recorded a net profit of 32.6 billion KRW, down 43.3% year-on-year, as both interest income and non-interest income decreased and provisions increased due to non-performing assets.

Investment Securities showed a net profit of 19.1 billion KRW, down 44.6% year-on-year, as interest income and securities-related gains increased but related fees decreased due to the reduction of PF operations for risk management.

On the other hand, Asset Management turned to a profit with a net profit of 3.7 billion KRW due to increased valuation gains on collective investment securities and convertible bonds.

The group’s asset soundness indicators showed that despite proactive risk management and continuous efforts to reduce non-performing assets, the group’s ratio of non-performing loans classified as fixed or below was 0.52%, and the delinquency ratio was 0.56%, rising 0.12 percentage points and 0.25 percentage points respectively compared to the same period last year.

Also, the group’s capital adequacy indicator, the common equity tier 1 (CET1) ratio, improved to 11.50%, up 0.29 percentage points from the end of last year, due to increased net profit and continuous risk-weighted assets (RWA) management in preparation for downside economic risks.

Ha Geun-cheol, head of the Brand Strategy Division at BNK Financial Group, said, “Considering the difficult domestic and international conditions such as the three highs (high interest rates, high exchange rates, and high inflation), we will focus our capabilities on soundness management for the time being and do our best to achieve steady growth in the second half of the year,” adding, “We will strengthen shareholder return policies such as interim dividends and share buybacks and cancellations.”

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