OK Savings Bank Net Profit Up 10.9 Billion Won YoY... Delinquency Rate 6.83%

Net Profit of 37.6 Billion KRW in Q1 This Year
Top Industry Delinquency Rate... "Impact of Not Selling Bonds"
Liquidity Doubled to 262%

OK Savings Bank recorded an increase in net profit in the first quarter of this year despite rising interest expenses. However, asset quality deteriorated as the delinquency rate rose by nearly 2 percentage points compared to a year ago.

OK Savings Bank announced on the 31st that its net profit for the first quarter of this year was 37.6 billion KRW, up 10.9 billion KRW from 26.7 billion KRW in the same period last year. The bank's interest expenses in the first quarter of this year amounted to 148.3 billion KRW, an increase of 93.1 billion KRW compared to 55.2 billion KRW in the same period last year, but unlike other savings banks, this did not lead to a deterioration in profitability.

The allowance for loan losses, which is set aside to cover potential losses, was 1.0467 trillion KRW in the first quarter of this year, similar to 1.0203 trillion KRW in the first quarter of last year.

Asset quality indicators worsened. The delinquency rate of OK Savings Bank in the first quarter of this year was 6.83%, up 2.76 percentage points from 4.07% a year ago, and nearly 2 percentage points higher than the savings bank industry average of 5.1%. The ratio of non-performing loans past due over 3 months, which represents the proportion of loans overdue for more than three months in total credit, also recorded 7.3%, similar to last year. An OK Savings Bank official explained, "The delinquency rate increased because non-performing loans were not sold off, as they were considered manageable."

The liquidity ratio, which shows a financial institution's ability to meet short-term debt obligations, nearly doubled from 133.71% in the first quarter of last year to 262.05% in the first quarter of this year. The BIS (Bank for International Settlements) capital adequacy ratio was 12.06% in the first quarter of this year, up from 10.56% a year ago. The legal regulatory minimum for the BIS capital adequacy ratio is 8% or higher.

OK Savings Bank's total assets increased by 1.9443 trillion KRW to 14.1763 trillion KRW compared to 12.232 trillion KRW in the first quarter of last year.

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