Acuon Savings Bank returned to profitability last year, successfully bouncing back in its performance.
On the 31st, Acuon Savings Bank announced that its net income for last year reached 37 billion won, marking a 158.5% increase compared to the previous year. Interest revenue rose by 19.7 billion won, lifting its performance. Expense reduction also contributed to the improvement in performance. The bank saved 45.3 billion won in interest expenses by restructuring its deposits portfolio and reduced provisions for bad debts by 28.6 billion won.
Last year, Acuon Savings Bank restructured its business portfolio centered on personal loans (P-loan) and corporate loans to improve profitability. It also focused on securing safe operating assets through the development and enhancement of a new alternative credit evaluation model.
The indicators of soundness have also improved. By pursuing strategic sales and disposals, the bank effectively managed and controlled non-performing assets and risk-weighted asset limits. Based on this, the BIS ratio rose from 11.62% in 2023 to 12.44% last year. The bank maintains that its arrears rate and ratio of fixed assets to substandard loans are kept within manageable limits.
This year, the plan is to expand the share of low-cost deposit products in line with the interest rate cut cycle and optimize the deposits portfolio. The credit evaluation system will also be refined. Along with this, it aims to enhance asset soundness through upgrades to its bond management model and analysis systems.