iM Financial Group Reports First-Half Net Profit of 295.6 Billion Won... 30.0 Billion Won Share Buyback and Cancellation

Net Profit Down 4.4% Year-on-Year Despite Improved Interest and Non-Interest Income
Impact of Revised Education Tax Rate and Increased Provision Reserves

iM Financial Group announced on July 27 that it recorded a net profit attributable to controlling shareholders of 295.6 billion won in the first half of this year.

In its earnings announcement the same day, iM Financial Group stated that its net profit attributable to controlling shareholders for the first half reached 295.6 billion won, representing a 4.4% decline compared to the first half of last year (309.3 billion won). Net income for the second quarter of this year was 141.1 billion won, down 9% versus the same period last year (155.0 billion won).

Total operating profit increased by 4.4% year-on-year to 1.109 trillion won, up from 1.0627 trillion won a year earlier, driven by improved interest income resulting from the expansion of productive finance at iM Bank and growth in operating assets at iM Capital, as well as higher non-interest income contributions from iM Securities thanks to the revitalization of the capital market.

However, net profit declined due to an increase in non-recurring expenses such as the revised education tax rate applied from this year, and higher provision reserves stemming from asset growth.

By affiliate, iM Bank, the group's core subsidiary, posted a first-half net profit of 45.7 billion won, a 4.2% decrease from the same period last year (256.4 billion won). Nevertheless, operating profit for the first half rose 0.8% year-on-year to 802.4 billion won, supported by a 5.9% increase in corporate lending and the outstanding won-denominated loans surpassing 60 trillion won.

 

The delinquency rate and substandard & below loan ratio—two key indicators of soundness—stood at 0.87% and 0.94%, respectively. The credit loss ratio fell by 0.05 percentage points to 0.41%.

iM Capital, which has been showing rapid growth recently, achieved growth of 13.9% in its operating assets in the first half, and posted a net profit of 39.5 billion won. iM Securities saw its net profit (separate basis) climb to 44.9 billion won as fee income surged in line with stronger capital markets. iM Life recorded a net profit of 18.2 billion won, up 31.9% year-on-year.

The iM Financial Holdings board of directors resolved on this day to undertake an additional share buyback and cancellation valued at 30.0 billion won. This is a 50% increase compared to the share buyback and cancellation (20.0 billion won) conducted in the second half of last year.

Once this share buyback and cancellation is completed, the cumulative total will reach 130.0 billion won. In line with its corporate value enhancement plan announced in October 2024, iM Financial Holdings plans to carry out a total share buyback and cancellation of 150.0 billion won by 2027.

Byunggyu Cheon, Group Chief Financial Officer (CFO) of iM Financial Holdings, stated, "If 2025 was the year of earnings normalization, 2026 will be the year of demonstrating the sustainability of these normalized results. Despite solid asset growth, efficient capital allocation considering risk weights allowed our CET-1 capital ratio to improve to an all-time high of 12.27% in the first half."

He continued, "We will work to stably manage the capital ratio by the end of this year so as to achieve the first target of our corporate value enhancement plan ahead of schedule. Furthermore, we will actively leverage non-taxable dividend opportunities so that our shareholders can tangibly experience real improvements in shareholder value."

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