SEOUL, May 9 (Korea Bizwire) – The Industrial Bank of Korea (IBK) announced that it recorded 326.9 billion won of consolidated net profit including IBK Capital and IBK Securities during the first quarter. The result was a 27.0-percent rise from the same period of the previous year (257.5 billion won) and up 93.7 percent from the previous quarter’s 168.7 billion won.
The bank alone recorded 332.7 billion won of net profit, a 101.0-percent rise from the previous quarter’s 165.5 billion won thanks to the inflow of loan loss reserve and reduction in management expenses.
IBK’s net interest margin (NIM) marked 1.92 percent, just a 0.01-percent fall from the previous quarter’s 1.93 percent, thanks to stable NIM management through the expansion of low-cost deposits in spite of the fall of profit from interest over the previous quarter.
Its loan balance to small and medium-sized companies recorded 111.2 trillion won, 2.4 trillion won or a 2.2-percent increase from the end of year 2013 and stood firm No. 1 position in small business loans with 22.6 percent.
Its total default rate showed 0.60 percent, a 0.23-percentage-point improvement over the same period of the previous year and its ratio of sub-standard loans marked 1.46 percent, a 0.15-percent decrease year on year. With the improvement, it is expected to considerably calm the worry over the deteriorated health of the bank due to the sluggish economy.
IR News Team (irkorea@koreabizwire.com)
