BNK Financial Group Reports KRW 166.6 Billion Net Profit for Q1 2025
Published 25 Apr.2025 17:52(KST)
Updated 31 Jul.2025 13:27(KST)
Common Equity Tier 1 Ratio Up 0.26 Percentage Points Year-on-Year
Quarterly Cash Dividend of KRW 120 Per Share Implemented
BNK Financial Group (Chairman Bin Daein) announced on April 25 through its earnings disclosure that the group’s consolidated net profit attributable to controlling interests for the first quarter of 2025 was KRW 166.6 billion, a decrease of KRW 82.9 billion (down 33.2%) compared to the same period last year.
Although non-interest income, including securities-related gains, increased, net profit for the period declined year-on-year due to a decrease in interest income and an increase in credit loss expenses.
The banking segment recorded a net profit of KRW 155 billion, a decrease of KRW 71.4 billion compared to the same period last year (Busan Bank down KRW 39.6 billion, Kyongnam Bank down KRW 31.8 billion). The non-banking segment posted a net profit of KRW 34.3 billion, a decrease of KRW 20.4 billion year-on-year (Capital down KRW 7.0 billion, Investment Securities down KRW 8.9 billion, Savings Bank up KRW 0.8 billion, Asset Management down KRW 2.8 billion).
The group’s asset quality indicators showed a ratio of substandard and below loans at 1.69% and a delinquency ratio at 1.12%, up 38 basis points and 18 basis points, respectively, from the previous quarter. This reflects an increase in non-performing assets due to the economic slowdown, indicating the need for more proactive asset quality management in the future.
In addition, the group’s common equity tier 1 (CET1) capital ratio, an indicator of capital adequacy, was 12.26%, up 26 basis points year-on-year, due to solid earnings and active risk-weighted asset (RWA) management. The company plans to continue improving the CET1 ratio to prepare for potential expansion of credit risk and to lay the foundation for increased shareholder returns.
At the board meeting held on the same day, the company resolved for the first time to pay a quarterly cash dividend of KRW 120 per share to enhance shareholder value.
Kwon Jaejung, CFO of BNK Financial Group, stated, "Going forward, we will prioritize restoring asset quality and improving performance," adding, "At the same time, we will do our utmost to earn the trust of the market by improving our loan portfolio and enhancing productivity through structural reforms."
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