Industrial Bank of Korea (024110) Q1 2026 earnings summary

Executive summary

• Consolidated net income for Q1 2026 was KRW 753.4bn, down 7.5% year-over-year, mainly due to FX valuation losses from a sharp KRW/USD rate spike, while bank-only net income was KRW 666.3bn, down 12.4% year-over-year.

• Earnings remained resilient due to a rebound in net interest margin (NIM) from lower funding costs and steady SME lending.

• Diversification efforts led to higher valuation gains on investments in innovative companies.

• SME loan balance reached KRW 264.2tn, maintaining a 24.4% market share and leadership in SME finance.

• The bank’s capital adequacy and liquidity ratios remain above regulatory requirements, with a BIS ratio of 14.93% and LCR of 104.35%.

Financial highlights

• Interest income rose 3.8% year-over-year to KRW 1,850.8bn; net interest income was KRW 1,991.9bn (up 3.7% YoY); non-interest income fell 45.4% year-over-year to KRW 93.1bn.

• Net fee and commission income was KRW 104.9bn (up 11.9% YoY).

• NIM improved to 1.63% in 1Q26 from 1.60% in 4Q25.

• Cost-to-income ratio improved to 35.8% from 38.4% a year earlier.

• Total assets were KRW 511.3tn; total equity was KRW 37.2tn.

Outlook and guidance

• Quarterly dividends to be introduced for the first time, with record date set for July 31, 2026; dividend per share to be announced in July.

• The bank plans to strengthen policy finance and tailored support for SMEs, especially those affected by global uncertainties and high oil prices.

• Continued focus on productive financing and SME lending, aiming to supply KRW 300tn by 2030 through the 30-300 Project.

• Continued focus on digital transformation, ESG finance, and global expansion, including new operations in Vietnam.