Industrial Bank of Korea (024110) Q3 2024 earnings summary

Executive summary

• Consolidated net income for 3Q24 was KRW 2,197.7bn, up 3.6% year-over-year, driven by SME/ SOHO loan growth and cost efficiency.

• Standalone net income rose 5.6% year-over-year to KRW 1,994.6bn.

• SME loan balance reached KRW 243.6tr, expanding SME market share to 23.32%.

• BIS capital adequacy ratio was 14.88%, with liquidity coverage ratio at 102.96%, both above regulatory requirements.

• Cost-to-income ratio improved to 33.6%, the lowest in the industry.

Financial highlights

• Consolidated total assets at Q3-end: KRW 458.4tr; total liabilities: KRW 424.6tr; equity: KRW 33.7tr.

• Net interest income for Q1–Q3 2024: KRW 5,909.5bn; net fee income: KRW 348.6bn.

• Cost-to-income ratio dropped to 33.6% in 3Q24.

• Credit loss provisions for Q1–Q3 2024: KRW 1,259.0bn.

• Basic EPS for Q1–Q3 2024: KRW 2,590.

Outlook and guidance

• Continued focus on SME loan growth, especially in high-growth industries, and plans to expand venture capital supply.

• Strategic direction includes balanced growth across retail, digital, non-interest, and global subsidiary operations, with emphasis on ESG and digital transformation.

• Plans to further reduce credit costs by revamping credit operation processes amid economic uncertainties.