Industrial Bank of Korea (024110) Q2 2025 earnings summary

Executive summary

• Consolidated net income for H1 2025 reached KRW 1,508.6 billion, up 8.2% year-over-year, with standalone net income at KRW 1,327.2 billion, up 5.4% year-over-year, driven by robust SME lending and stable asset quality.

• SME loan balance increased 4.6% from year-end to KRW 258.5 trillion, achieving a record market share of 24.43%.

• Despite a declining NIM due to lower interest rates, non-interest income growth and cost efficiency supported profit expansion.

• The bank maintained strong capital and liquidity positions, with a BIS ratio of 15.03% and LCR of 108.09%.

• Operating cost-to-income ratio remained the lowest in the sector at 38.4%.

Financial highlights

• Consolidated net income rose 8.2% year-over-year to KRW 1,508.6 billion; separate net income up 5.4%.

• NIM declined to 1.55% in 2Q25 from 1.63% in 1Q25 and 1.71% in 2Q24.

• Non-interest income surged 217.6% year-over-year to KRW 402.3 billion in 1H25.

• Operating profit before provisions was KRW 2,431.7 billion, nearly flat year-over-year.

• Total assets at June 30, 2025, were KRW 489.5 trillion, up from KRW 472.2 trillion at year-end 2024.

Outlook and guidance

• Continued focus on SME lending, market leadership, and global expansion, especially in Poland and Vietnam.

• Ongoing efforts to enhance cost efficiency, risk management, and maintain asset quality.

• Expansion of investor relations, digital transformation, and ESG leadership.