Industrial Bank of Korea (024110) Q1 2025 earnings summary

Executive summary

• Consolidated net income for Q1 2025 was KRW 814.2bn, up 3.8% YoY, driven by robust SME and SOHO loan growth and stable interest income despite market uncertainties.

• Standalone net income rose 6.9% YoY to KRW 760.4bn, reflecting improved asset quality and cost control.

• SME loan balance reached KRW 253.7tr, with a record market share of 24.18%.

• Cost-to-income ratio improved to 35.8%, reflecting ongoing efficiency initiatives.

• NPL ratio remained stable at 1.34%, with proactive risk management supporting asset quality.

Financial highlights

• Consolidated total assets at Q1 2025 were KRW 483.4tr; total liabilities: KRW 449.1tr; total equity: KRW 34.3tr.

• Net interest income for Q1 2025 was KRW 1.92tr; net fee and commission income: KRW 93.7bn.

• NIM held steady at 1.63% in Q1 2025.

• SME loan balance increased by KRW 6.5tr from the previous quarter.

• BIS capital adequacy ratio (consolidated) stood at 14.78% in Q1 2025.

Outlook and guidance

• Charter amendment planned by year-end to align with the Corporate Value-up plan.

• Management expects continued low domestic economic growth due to weak consumer sentiment and global uncertainties.

• Focus remains on supporting SMEs and exporters, maintaining asset quality, and expanding digital and ESG initiatives.

• Plans to strengthen global operations, especially in Poland, and enhance digital transformation.