IBK Savings Bank has successfully turned a profit in the first half of 2026, accelerating its management normalization efforts. The bank has reduced high-risk assets, such as real estate project financing, while expanding its loan portfolio, leading to improvements in both profitability and financial stability indicators.
On July 15, IBK Savings Bank held a ceremony at its headquarters to share its management normalization achievements and announced plans to continue focusing on sustainable growth and financial stability in the second half of the year.
The bank expects to report an estimated net profit of 7.9 billion won for the first half of the year, marking a recovery from last year's significant losses. Despite rising funding costs, IBK has restructured its loan portfolio and expanded its income-generating assets to maintain a stable interest income base.
Loan growth has also continued. As of the end of June, the total loan balance reached 1.3723 trillion won, an increase of 81.8 billion won compared to the end of last year. The bank has strengthened its inclusive finance foundation by expanding loans primarily to low- and mid-credit borrowers and financially vulnerable customers.
The delinquency rate is expected to decline to 6.21%, down 0.31 percentage points from 6.52% at the end of last year. The ratio of non-performing loans (NPL) is also projected to improve from 9.77% to 9.21%, a decrease of 0.56 percentage points during the same period.
Notably, the ratio of real estate development loans has decreased from 7.12% at the end of last year to 4.90%, a drop of 2.22 percentage points. The bank attributes this reduction to proactive risk management measures, including the sale and write-off of bad debts and the conversion of collateral.
Capital and liquidity indicators remain stable. As of the end of June, the BIS capital adequacy ratio is expected to be 15.63%, and the liquidity ratio is projected at 159.06%.
IBK Savings Bank plans to prioritize financial stability over expansion in the second half of the year. The bank aims to increase mid-interest loans, support low-income finance, and promote productive finance based on local economies while continuously reducing the proportion of high-risk assets, such as real estate development loans, to establish a stable growth foundation.
An IBK Savings Bank official stated, "As a member of the IBK Financial Group, we will faithfully fulfill our role as a policy finance subsidiary that enhances financial accessibility for low- and mid-credit borrowers and contributes to revitalizing the local economy. In the second half of the year, we will continue to reduce high-risk assets while managing financial stability, stabilizing our funding structure, and expanding income-generating assets."
* This article has been translated by AI.
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