Results diverged among South Korea’s three major regional financial holding companies in the first quarter. BNK Financial Group and JB Financial Group posted steady net profit growth, while iM Financial Group’s net profit was essentially flat despite expansion in scale.
According to the financial sector on Wednesday, combined first-quarter net profit for BNK, JB and iM totaled 532 billion won, up 9.9% from 483.7 billion won a year earlier.
By group, BNK reported 211.4 billion won in net profit for the quarter, a 26.9% increase from a year earlier. JB posted 166.1 billion won, up 2.1%, and iM recorded 154.5 billion won, up 0.1%.
Nonbank businesses drove the three groups’ results. Even as earnings at their core banking units lagged, a larger share of profit came from nonbank units, led by capital businesses, supporting overall growth.
At BNK, net profit from the banking segment rose 20.6 billion won from a year earlier to 175.6 billion won. BNK Busan Bank increased profit by 22.5 billion won, while BNK Kyongnam Bank fell 1.9 billion won. The nonbank segment posted 59.6 billion won in net profit, up 25.3 billion won, with all major affiliates contributing, including capital (10.7 billion won), investment securities (3.6 billion won), savings bank (1.0 billion won) and asset management (7.5 billion won).
At JB, nonbank affiliates offset weaker bank earnings. Jeonbuk Bank and Gwangju Bank posted net profit of 39.9 billion won and 61.1 billion won, down 22.5% and 8.7%, respectively, from a year earlier. JB Woori Capital reported 72.7 billion won in net profit, up 24.3%, leading the group’s performance. Cambodia’s Phnom Penh Commercial Bank (PPCBank) posted 12.4 billion won, up 21%.
iM also leaned on nonbank units. iM Bank’s first-quarter net profit fell 3.6% from a year earlier to 120.6 billion won. Nonbank affiliates iM Life and iM Capital posted net profit of 16.5 billion won (up 63.4%) and 19.3 billion won (up 31.3%), respectively. The share of group profit from nonbank affiliates rose to 34% from 30.3% in the first quarter of last year.
The three groups also outlined shareholder return policies alongside their first-quarter earnings releases.
BNK said its board approved a quarterly cash dividend of 150 won per share, up 25% from last year. It also decided to buy back and cancel 60 billion won worth of treasury shares in the first half of the year.
JB said its board on April 23 approved a quarterly dividend of 311 won per share, about double the 160 won paid in the first quarter of last year. It also set a goal of raising its shareholder return ratio to 50% by the end of this year.
iM said it plans to buy back and cancel 150 billion won worth of treasury shares by 2027, after announcing a 40 billion won buyback-and-cancellation plan in February. It also said it aims by 2027 to reach a return on equity of 9%, a common equity tier 1 (CET1) ratio of 12.3% and total shareholder return (TSR) of 40% to strengthen the foundation for shareholder returns.
According to the financial sector on Wednesday, combined first-quarter net profit for BNK, JB and iM totaled 532 billion won, up 9.9% from 483.7 billion won a year earlier.
By group, BNK reported 211.4 billion won in net profit for the quarter, a 26.9% increase from a year earlier. JB posted 166.1 billion won, up 2.1%, and iM recorded 154.5 billion won, up 0.1%.
Nonbank businesses drove the three groups’ results. Even as earnings at their core banking units lagged, a larger share of profit came from nonbank units, led by capital businesses, supporting overall growth.
At BNK, net profit from the banking segment rose 20.6 billion won from a year earlier to 175.6 billion won. BNK Busan Bank increased profit by 22.5 billion won, while BNK Kyongnam Bank fell 1.9 billion won. The nonbank segment posted 59.6 billion won in net profit, up 25.3 billion won, with all major affiliates contributing, including capital (10.7 billion won), investment securities (3.6 billion won), savings bank (1.0 billion won) and asset management (7.5 billion won).
At JB, nonbank affiliates offset weaker bank earnings. Jeonbuk Bank and Gwangju Bank posted net profit of 39.9 billion won and 61.1 billion won, down 22.5% and 8.7%, respectively, from a year earlier. JB Woori Capital reported 72.7 billion won in net profit, up 24.3%, leading the group’s performance. Cambodia’s Phnom Penh Commercial Bank (PPCBank) posted 12.4 billion won, up 21%.
iM also leaned on nonbank units. iM Bank’s first-quarter net profit fell 3.6% from a year earlier to 120.6 billion won. Nonbank affiliates iM Life and iM Capital posted net profit of 16.5 billion won (up 63.4%) and 19.3 billion won (up 31.3%), respectively. The share of group profit from nonbank affiliates rose to 34% from 30.3% in the first quarter of last year.
The three groups also outlined shareholder return policies alongside their first-quarter earnings releases.
BNK said its board approved a quarterly cash dividend of 150 won per share, up 25% from last year. It also decided to buy back and cancel 60 billion won worth of treasury shares in the first half of the year.
JB said its board on April 23 approved a quarterly dividend of 311 won per share, about double the 160 won paid in the first quarter of last year. It also set a goal of raising its shareholder return ratio to 50% by the end of this year.
iM said it plans to buy back and cancel 150 billion won worth of treasury shares by 2027, after announcing a 40 billion won buyback-and-cancellation plan in February. It also said it aims by 2027 to reach a return on equity of 9%, a common equity tier 1 (CET1) ratio of 12.3% and total shareholder return (TSR) of 40% to strengthen the foundation for shareholder returns.
* This article has been translated by AI.
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