BNK Financial Group's Q3 Net Profit Falls 28.5% to 210.5 Billion Won YoY

Impact of sluggish non-interest income
Cumulative net income through Q3 down 19.2% year on year

BNK Financial Group said in a regulatory filing on Oct. 26 that its net income for the third quarter, attributable to owners of the parent, fell 28.5% year on year to 210.5 billion won.

The group said net income declined year on year due to the impact of one-off expenses related to the sale of the BNK Gangnam Core office last year and a decrease in non-interest income. Net income rose 10.1 billion won, or 5.1%, from the second quarter of this year.

Cumulative net income through the third quarter of this year also fell 147.7 billion won, or 19.2%, from the same period last year to 622.3 billion won. Cumulative net income in the banking division declined 113.1 billion won, or 16.9%, year on year to 557.3 billion won. Cumulative net income at Busan Bank and Kyongnam Bank fell by 99.1 billion won, or 23.5%, and 14 billion won, or 5.6%, respectively, to 321.8 billion won and 235.5 billion won.

Cumulative net income in the non-banking division increased 28.7% year on year to 117.5 billion won. BNK Capital posted 117.5 billion won, up 7.8 billion won, or 7.1%, from a year earlier. BNK Investment & Securities recorded 50.1 billion won, up 20.8 billion won, or 71.0%; BNK Asset Management posted 29.9 billion won, up 13.7 billion won, or 84.6%; and BNK Savings Bank recorded 10.6 billion won, up 4.4 billion won, or 71.0%, continuing the growth trend.

The group’s non-performing loan (NPL) ratio, an indicator of asset quality, was 1.45%, improving by 0.01 percentage point from the previous quarter, while its delinquency rate rose 0.06 percentage point to 1.40%.

The common equity tier 1 (CET1) ratio, an indicator of capital adequacy, rose 0.04 percentage point from the previous quarter to 12.18%, supported by efficient management of risk-weighted assets and an increase in retained earnings.

At a board meeting that day, the group approved a quarterly cash dividend of 150 won per share and a share buyback worth 60 billion won in the second half of the year to enhance shareholder value.

BNK Financial Group Vice President and Chief Financial Officer Park Sung-wook said, "Net income fell year on year due to the impact of one-off gains recorded last year and a decrease in non-interest income. We will diligently pursue the profitability improvement initiatives in our Value-Up 2.0 plan, announced last September, and do our utmost to repay the market's trust by improving work efficiency and productivity."

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