BNK Financial Group Reports Q3 Net Profit of 294.2 Billion Won, Up 38.3% Year-on-Year

BNK Financial Group announced on October 30 that it recorded a net profit of 294.2 billion won in the third quarter of this year. This figure represents a 38.3% increase compared to the same period last year. The cumulative net profit reached 770 billion won, up 9.2% from the same period last year. BNK Financial explained that the increase in net profit was due to higher non-interest income and a reduction in credit loss expenses.

The banking segment posted a net profit of 670.4 billion won, down 5.1 billion won from the same period last year (with Busan Bank up 36.2 billion won and Kyongnam Bank down 41.3 billion won). The non-banking segment recorded a net profit of 166 billion won, an increase of 41.9 billion won year-on-year (with capital up 5.4 billion won, investment securities up 25.8 billion won, savings bank up 3 billion won, and asset management up 9.8 billion won, among others).

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The group’s asset quality indicator, the ratio of non-performing loans, improved by 16 basis points from the previous quarter to 1.46% (1bp = 0.01 percentage point), and the delinquency rate improved by 5 basis points to 1.34% from the previous quarter. Although these asset quality indicators showed some improvement in the third quarter, BNK Financial emphasized that ongoing asset quality management is required due to continued macroeconomic and regional uncertainties. The group’s capital adequacy indicator, the Common Equity Tier 1 (CET1) ratio, rose by 3 basis points from the previous quarter to 12.59%, thanks to solid earnings and proactive risk-weighted asset (RWA) management.

Meanwhile, the board of directors of BNK Financial Group resolved on this day to pay a quarterly cash dividend of 120 won per share to enhance shareholder value.

Kwon Jaejung, CFO and Executive Vice President of BNK Financial Group, stated, "Going forward, our top priority will be improving asset quality, and we plan to continuously enhance the structure of our assets with a focus on risk-adjusted profitability. We will do our utmost to ensure that shareholder returns can be expanded based on the improved capital ratio."

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