BNK Financial Group Reports 3Q Net Profit of 657 Billion KRW, Down 9.7% Year-on-Year

BNK Financial Group announced on the 31st that its consolidated net profit attributable to controlling interests for the third quarter of this year recorded 657 billion KRW, down 9.7% (approximately 70.7 billion KRW) compared to the same period last year.

The banking sector posted a net profit of 624.7 billion KRW, an increase of 2.5% (15.3 billion KRW) year-on-year, due to profit growth from soundness management and asset growth despite a decrease in non-interest income such as large-scale proactive provisioning to enhance loss absorption capacity and project financing (PF) fee income. Busan Bank recorded 393 billion KRW, up 0.7%, and Gyeongnam Bank recorded 231.7 billion KRW, up 5.8%.

The non-banking sector showed a net profit of 134 billion KRW, down 39.4% (87.1 billion KRW) year-on-year, due to a decrease in fee income and an increase in provisions for non-performing assets despite gains related to marketable securities.

By affiliate, Capital saw a decrease of 35.7% (56.9 billion KRW) to 102.7 billion KRW, Investment Securities fell 74.5% (45.8 billion KRW) to 15.7 billion KRW, and Savings Banks dropped 83.0% (7.3 billion KRW) to 1.5 billion KRW, all declining. However, Asset Management turned to a profit with a net income of 5.5 billion KRW due to increased gains from collective investment securities and convertible bond valuations.

The group’s non-performing loan ratio and delinquency rate both stood at 0.58%, rising 1 basis point (1bp = 0.01%) and 5 basis points respectively from the previous quarter. BNK explained that this was the result of proactive risk management and continuous efforts to reduce non-performing assets.

Additionally, the group’s common equity tier 1 capital ratio, a capital adequacy indicator, improved to 11.55%, up 11 basis points from the previous quarter, due to increased net profit and risk-weighted asset (RWA) management in preparation for economic slowdown risks.

Ha Geun-cheol, Head of Brand Strategy Division, stated, “Amid the recent challenging domestic and international business environment, we will ensure thorough soundness management through proactive group-level responses and build a stable growth foundation through meticulous risk management such as sufficient provisioning. Going forward, we will continue to strengthen shareholder return policies, including regularizing treasury stock repurchases and cancellations and shortening dividend cycles, so that corporate performance benefits shareholders while fulfilling the role of a regional financial institution.”

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