IBK Industrial Bank Q1 Net Profit Falls 7.5% to 753.4 Billion Won on FX Volatility

IBK Industrial Bank of Korea said Friday its first-quarter net profit fell 7.5% from a year earlier to 753.4 billion won, citing the impact of exchange-rate volatility.

The bank said the decline was linked to currency-related factors stemming from Iran.

Lending to small and midsize enterprises increased as the bank expanded what it called “productive finance.” The outstanding balance of SME loans rose 0.9% from the end of last year to 264.2 trillion won. Its share of the SME market was 24.4%.

Asset-quality indicators were mixed. The ratio of substandard or below loans was unchanged from the end of last year at 1.28%, while the credit cost ratio fell 0.04 percentage point to 0.43%.

An IBK official said the bank will continue supporting SMEs facing difficulties from rising exchange rates and oil prices through its “IBK-type Productive Finance 30-300 Project.” The official added that, as disclosed in March, the bank plans to introduce quarterly dividends for the first time, with July 31 set as the dividend record date.