iM Financial Group Q3 Net Income at KRW 120.7 Billion, Down 1.4% Year on Year

Cumulative net income for the first three quarters fell 3.6% year on year
Plans to cancel KRW 30 billion worth of treasury shares within one month

iM Financial Group disclosed on the 27th that its net income attributable to controlling interests for the third quarter of this year was tentatively tallied at KRW 120.7 billion. This was down 1.4% from KRW 122.4 billion in the third quarter of last year. Cumulative net income for the first three quarters of this year was KRW 416.3 billion, down 3.6% from KRW 416.3 billion in the same period last year.

iM Bank, the group's flagship subsidiary, posted net income of KRW 115.8 billion in the third quarter, up 5.1% from KRW 110.2 billion in the same period last year. iM Financial Group said growth in corporate loans drove increases in total loans and net interest income, boosting earnings.

However, cumulative net income for the first three quarters of this year was KRW 361.5 billion, down 1.4% from KRW 366.6 billion in the same period last year. This was due to lower earnings in the first and second quarters.

iM Capital, a non-bank subsidiary, posted net income of KRW 17 billion in the third quarter, slightly down from KRW 17.3 billion in the third quarter of last year. However, supported by strong earnings in the first and second quarters, its cumulative net income for the first three quarters of this year rose 20% year on year to KRW 56.5 billion. iM Financial Group said iM Capital pursued qualitative growth focused on auto finance, improving asset quality and reducing provisions for loan losses.

iM Securities posted separate-basis net income of KRW 27.3 billion in the third quarter, up 111.6% from KRW 12.9 billion in the third quarter of last year. Its cumulative separate-basis net income for the first three quarters also rose 10.4% year on year to KRW 72.2 billion.

iM Life posted a net loss of KRW 7 billion in the third quarter of this year, bringing its cumulative net income for the first three quarters to KRW 11.2 billion, down 41.7% year on year.

iM Financial Group completed the KRW 30 billion share buyback it announced in July and plans to cancel all the shares within one month. Since announcing its corporate value enhancement plan in October 2024, iM Financial Group has bought back and canceled shares equivalent to about 7.4% of its total shares issued. Its Common Equity Tier 1 (CET1) ratio reached a record high of 12.39%, improving by 0.12 percentage points from the previous quarter.

Chun Byung-kyu, Senior Executive Vice President and Group CFO of iM Financial Group, said, "While increased market volatility and rising interest rates have heightened uncertainty surrounding non-interest income, we view positively the improvement in net interest income, the foundation of earnings, supported by solid asset growth. We will further strengthen asset quality management and exercise more thorough control over costs, including loan-loss provisions, so that we can sustain the improvement in earnings through the year."

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