Industrial Bank of Korea (IBK) disclosed on the 27th that net income under consolidation for the first half of this year was 1.4429 trillion won, down 4.4% from a year earlier, and on a separate basis was 1.2078 trillion won, down 9.0%.
Despite improved interest income from growth in interest-earning assets and efforts to reduce funding costs, as well as better results related to marketable securities, net income edged down from a year earlier due to expanded foreign exchange valuation losses from a surge in the exchange rate and higher loan-loss provisions.
During the same period, the outstanding loan balance to corporations totaled 270 trillion won, up 3.1% (8.1 trillion won) from the end of last year. Accordingly, its share of the mid-sized corporate finance market reached a record high of 24.6%.
The credit cost ratio came in at 0.46%, up 5 basis points from a year earlier, while the ratio of substandard-and-below loans was 1.27%, down 1 basis point from the end of last year. With high exchange rates and high interest rates delaying improvement in mid-sized companies' business conditions, the credit cost ratio increased slightly.
An Industrial Bank of Korea (IBK) official said, "Through a reorganization in the second half, we secured momentum for productive finance support and an AI transformation," adding, "We also plan to further strengthen shareholder returns through the bank's first-ever quarterly dividend."