DGB Financial Group Portfolio Rebalancing... "Capital Efficiency Up"

iM Bank Growth Momentum... Actively Responding to Enhance Shareholder Value

DGB Financial Group is leveraging iM Bank (formerly Daegu Bank), which has transitioned into a commercial bank, as a growth momentum. On the 7th, the group announced that it is revising its portfolio strategy, including reallocating group capital, to actively respond to shareholder value enhancement related to the capital market value-up program.

This plan focuses on maximizing capital efficiency by using limited capital effectively. The capital ratio targets are divided into short-term and mid-to-long-term goals, with a phased approach, and the group plans to concentrate all its capabilities to achieve these targets.

The strategy is to support growth centered on iM Bank, the main subsidiary and newly converted commercial bank, while managing the overall group capital ratio by reducing risk-weighted assets (RWA) of non-bank subsidiaries.

From the perspective of return on risk-weighted assets (RORWA), the group plans to reallocate its portfolio to support growth mainly in assets with high returns relative to risk weights. By reducing low capital efficiency assets in non-bank affiliates, the group can provide greater support for household loans growth in banks, which have relatively lower RWA.

To revise the strategy focusing on capital efficiency, DGB Financial began discussions on RWA reallocation in May. Since June, the group has changed the Group Management Council, which includes the chairman and CEOs of affiliates, to a monthly meeting to regularly review growth strategies and tasks.

A DGB Financial Group official stated, “The core of the new group strategy direction is capital ratio management, and we are preparing detailed strategies to thoroughly manage capital ratios while promoting qualitative growth.”

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