Industrial Bank of Korea (024110) investor relations material

Executive summary

• Consolidated net income for H1 2026 was KRW 1,442.9 billion, down 4.4% year-over-year, mainly due to FX losses despite SME loan and interest income growth.

• Standalone net income was KRW 1,207.8 billion, a 9.0% decrease year-over-year.

• SME loan balance reached KRW 270 trillion, with a record 24.6% market share.

• First-ever quarterly dividend of 210 KRW per share was implemented.

• The bank maintained strong capital adequacy and liquidity, with a BIS ratio of 14.80% and LCR of 104.01%.

Financial highlights

• Net interest income for H1 2026 was KRW 4,076.3 billion, up 7.2% year-over-year.

• Non-interest income dropped 54.2% year-over-year due to increased FX valuation losses despite improved securities gains.

• Cost-to-income ratio was 33.7% (up from 33.1% in H1 2025).

• ROE and ROA declined compared to the previous year.

• Earnings per share (EPS) for H1 2026 was KRW 1,671.

Outlook and guidance

• Continued focus on productive finance, AI-driven and digital transformation.

• Ongoing efforts to enhance shareholder returns through dividends.

• Management expects continued pressure from high inflation, interest rates, and exchange rates, but aims to maintain asset quality and profitability.

• Global expansion will continue, with new operations in Vietnam and Poland.