DGB Financial Reports 220.8 Billion KRW Net Profit in 2024, Down 43.1% YoY... Announces 60 Billion KRW Treasury Stock Cancellation

Cash Dividend of 500 KRW per Share Approved
Plan to Cancel Treasury Shares Worth 60 Billion KRW

DGB Financial Group announced on the 7th through its earnings report that it recorded a net income attributable to controlling shareholders of 220.8 billion KRW for 2024 (cumulative).

This represents a 43.1% decrease compared to the previous period. Although the bank's performance slightly improved, the increase in loan loss provisions related to vulnerable exposures such as real estate project financing (PF) in non-bank affiliates and a decline in non-interest income were identified as the main factors.

The core affiliate, iM Bank, posted a net income of 371 billion KRW for 2024 (cumulative), marking a 2.0% increase year-on-year. Despite a slowdown in loan demand and a decline in net interest margin (NIM) in the second half, the loan loss provision ratio stabilized, resulting in an overall favorable earnings trend.

DGB Financial Group explained, "Since the financial success of the group this year depends on whether iM Securities, which recorded a loss of 158.8 billion KRW in 2024, can recover its profitability, if the securities firm's performance improves, the group's profits will naturally increase."

The board of directors of DGB Financial Holding resolved a cash dividend of 500 KRW per common share and simultaneously announced a plan to execute a large-scale treasury stock cancellation amounting to approximately 60 billion KRW.

This involves canceling about 2.75 million shares of treasury stock currently held (purchased for 20 billion KRW) and additional treasury shares to be purchased in the first half of this year (worth about 40 billion KRW).

This reflects the management's intention to alleviate investor disappointment over recent poor performance and dividend reductions, and to restore external credibility by early implementation of the corporate value enhancement plan announced last year.

A representative of DGB Financial Holding stated, "Along with presenting a new vision as the 'Only 1 Hybrid Financial Group that approaches customers digitally,' we will faithfully implement the value-up program announced last year and focus on enhancing corporate value."

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