DGB Financial, Last Year's Net Profit 387.8 Billion Won... 3.4% Decrease YoY

"Core Profit is Favorable"

DGB Financial Group announced on the 7th that it achieved a net income attributable to controlling shareholders of 387.8 billion KRW last year, a 3.4% decrease compared to the same period the previous year.

DGB Financial Group explained that the decline was influenced by the bank's special provision for loan losses in preparation for uncertain domestic and international economic conditions, one-time expenses such as livelihood finance, and conservative provisions for non-bank PF (project financing) assets.

The net income of its affiliate, DGB Daegu Bank, was 363.9 billion KRW, down 6.2% year-on-year. Although there was solid growth in KRW loans and a significant increase in non-interest income, the recognition of livelihood finance-related expenses in the fourth quarter and proactive provisioning for vulnerable assets impacted the decline in performance. Among non-bank affiliates, except for DGB Life Insurance, overall performance was weaker than the previous year. The main reasons were large-scale provisioning for the smooth landing of the real estate PF business and increased funding costs.

Regarding next year's outlook, DGB Financial Group stated, "Additional provisioning for vulnerable exposures of non-bank affiliates is inevitable due to the prolonged real estate market downturn," but also added, "We expect a visible cut in the base interest rate, a decrease in interest expenses due to lower funding costs, and an increase in bond-related income."

Meanwhile, the DGB Financial Group board of directors resolved a cash dividend of 550 KRW per common share. Including the 20 billion KRW share repurchase conducted for the first time last year, the total shareholder return ratio stands at 28.8%, continuing a gradual expansion trend each year.

A DGB Financial Group official said, "Despite the continued uncertain domestic and international environment, we will focus on managing profitability and soundness, and continue win-win finance with customers and shareholders through a successful transition to a commercial bank."

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