Industrial Bank of Korea (024110) Q2 2024 earnings summary

Executive summary

• Net income for 1H24 reached KRW 1,394.2 billion on a consolidated basis, up 0.3% year-over-year; standalone net income was KRW 1,258.8 billion, up 4.9% year-over-year.

• SME loan balance increased by KRW 7.1 trillion to 240.9 trillion KRW, with a record market share of 23.31%.

• Growth driven by steady SME loan expansion and reduced credit loss provisions.

• Maintained strong capital adequacy and liquidity, with a BIS ratio of 14.98% and LCR of 104.99%.

• Continued focus on SME and small business support, digital innovation, and ESG initiatives.

Financial highlights

• Consolidated net interest income for 1H24 was KRW 3,952.9 billion, up 1.0% year-over-year; standalone net interest income was KRW 3,642.2 billion, down 2.5% year-over-year.

• Non-interest income dropped 61.2% year-over-year to KRW 159.1 billion.

• Cost-to-income ratio (standalone) improved to 35.6% in 1H24.

• Market share in SME loans: 23.31%, highest ever.

• Total assets: 461.9 trillion KRW as of June 2024.

Outlook and guidance

• Expects continued external volatility and economic uncertainty.

• Will strengthen SME and small business support, digital transformation, and ESG finance.

• Aims to maintain stable profitability and asset quality.

• Ongoing efforts to enhance operational efficiency and reduce credit costs amid economic uncertainty.