Busan, South Korea – BNK Financial Group (Chairman Bin Dae-in) announced on February 6th that its consolidated net profit (controlling interest) for 2024 reached a record high of 802.7 billion won, a 25.5% increase (162.9 billion won) from the previous year.
This impressive performance was driven by growth in both interest income and non-interest income, including gains from securities trading, as well as a decrease in loan loss provisions, such as PF loan loss reserves.
The banking sector saw a net profit of 771.8 billion won, with Busan Bank contributing 76.4 billion won and Gyeongnam Bank 59.2 billion won, representing a combined increase of 135.6 billion won year-over-year.
Non-banking subsidiaries also contributed to the strong results, with a combined net profit of 167.9 billion won, up 24.9 billion won from the previous year. This included contributions from BNK Capital (+18.2 billion won), BNK Investment & Securities (+5.2 billion won), BNK Savings Bank (+0.8 billion won), and BNK Asset Management (+1.4 billion won).
The group's asset quality indicators remained healthy, with the non-performing loan ratio at 1.18%, unchanged from the previous quarter, and the delinquency rate improving by 4 basis points to 0.94%. However, the group plans to maintain prudent asset quality management in anticipation of potential deterioration due to the economic slowdown.
The common equity tier 1 (CET1) ratio, a key indicator of capital adequacy, rose by 4 basis points from the previous quarter to 12.35%, driven by strong earnings and active management of risk-weighted assets (RWA). This improvement provides a buffer against potential credit risks and lays the foundation for increased shareholder returns.
The board of directors approved a cash dividend of 650 won per share (including an interim dividend of 200 won), representing a dividend payout ratio of 26%. The board also approved a plan to buy back and retire 40 billion won worth of its own shares, equivalent to 5% of the net profit.
"In line with the corporate value enhancement plan announced by the company, we will increase the scale of treasury stock buyback and retirement in the first half of this year alone, which is more than the amount implemented last year (33 billion won)," said Kwon Jae-jung, CFO of BNK Financial Group. "In the future, we will do our best to expand the shareholder return policy by maximizing the proportion of treasury stock buyback and retirement within the range of stably expanding dividends per share."
This record-breaking performance and commitment to shareholder returns underscore BNK Financial Group's strong position in the Korean financial market.
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