Industrial Bank of Korea (024110) Q1 2024 earnings summary

Executive summary

• Consolidated net income for Q1 2024 was KRW 784.5 billion, up 8.5% year-over-year, with standalone net income at KRW 711.1 billion, up 15.7% year-over-year, driven by SME loan growth and stable asset quality.

• SME loan balance reached KRW 237.3 trillion, with a market share of 23.31%, reinforcing leadership in SME finance.

• BIS capital adequacy ratio stood at 14.94%, with liquidity coverage ratio at 108.52%, both exceeding regulatory requirements.

• Stable performance was achieved despite external volatility, supported by reduced credit loss provisions.

• Cost-to-income ratio (bank basis) was 33.5%, the lowest among peers.

Financial highlights

• Consolidated net income: KRW 784.5 billion (+8.5% YoY); separate net income: KRW 711.1 billion (+15.7% YoY).

• Net interest margin (NIM) at 1.74% for Q1 2024, slightly down from 1.76% in Q4 2023.

• Credit loss provisions for Q1 2024 were KRW 297.0 billion, down 49.5% year-over-year; other sources report KRW 382.8 billion, down from KRW 589.4 billion YoY.

• Basic EPS for Q1 2024 was KRW 929, up from KRW 860 in Q1 2023.

• Fee income was KRW 205.1 billion, with net fee income of KRW 97.3 billion.

Outlook and guidance

• Continued focus on SME lending, balanced growth across subsidiaries, and expansion of digital infrastructure and global network.

• Ongoing efforts to reduce mid- to long-term credit costs through process improvements.

• Plans to expand innovative finance, ESG initiatives, and digital transformation.