BNK Financial Group Reports Net Profit of 630.3 Billion KRW Last Year

Decrease of 143.9 Billion KRW Compared to Last Year
Cash Dividend of 510 KRW per Share

BNK Financial Group announced on the 5th in its earnings disclosure that its consolidated net income for 2023 amounted to 630.3 billion KRW. This represents a decrease of 143.9 billion KRW compared to 2022, mainly due to large-scale proactive provisioning and increased costs related to mutually beneficial financing.

The banking sector's net income was 626.7 billion KRW, down 72.2 billion KRW or 10.3% from 2022. Busan Bank saw a decrease of 76.7 billion KRW, while Gyeongnam Bank recorded an increase of 4.5 billion KRW. In the non-banking sector, net income declined by 74.3 billion KRW, or 34.2%, to 143.0 billion KRW due to reduced fee income and increased provisions for non-performing assets.

Capital and investment securities posted net incomes of 111.8 billion KRW and 12.4 billion KRW respectively, marking decreases of 34.6% and 78.4% compared to the previous year. On the other hand, savings banks turned profitable with an increase of 6.9 billion KRW to 3.1 billion KRW, and asset management recorded a 20.7 billion KRW increase to 6.9 billion KRW.

The group’s asset soundness indicators showed a non-performing loan ratio of 0.73% and a delinquency ratio of 0.60%, rising by 0.15 and 0.20 percentage points respectively from the previous year. Meanwhile, the group’s capital adequacy indicator, the common equity tier 1 (CET1) ratio, improved by 0.51 percentage points to 11.67% compared to the previous year.

On the same day, BNK Financial Group’s board of directors decided on a cash dividend of 510 KRW per share (including an interim dividend of 100 KRW) and a share buyback and cancellation worth approximately 13 billion KRW, equivalent to 2% of net income.

Kwon Jae-jung, Head of Finance at BNK Financial Group, stated, "Excluding the additional conservative provisioning and mutually beneficial financing support, the net income for 2023 slightly exceeded the 2022 level. We will prioritize solid growth and actively pursue shareholder return policies such as expanding dividend payout ratios and share buybacks and cancellations as the group’s top management agenda."

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