Industrial Bank of Korea (024110) Q3 2025 earnings summary

Executive summary

• Consolidated net income for Q3 2025 reached KRW 2,259.7 billion, up 2.8% year-over-year, with bank net income at KRW 1,997.3 billion, a 0.1% increase year-over-year.

• SME loan balance grew to KRW 260.3 trillion, maintaining a market share of 24.33% despite competitive pressures.

• Non-interest income surged 59.5% year-over-year, driven by improved securities gains, offsetting reduced FX valuation gains.

• Asset quality remained strong, with an NPL ratio between 1.00% and 1.35% and a BIS capital adequacy ratio of 14.88%.

• Total assets reached KRW 490.1 trillion, and total equity was KRW 35.7 trillion at Q3 2025 end.

Financial highlights

• Consolidated net income for 3Q25 was KRW 751.1 billion, up 8.2% quarter-over-quarter and 2.8% year-over-year.

• Net interest income for the first nine months was KRW 5,756.4 billion (consolidated), down from KRW 5,909.5 billion year-over-year.

• Cost-to-income ratio improved to 38.3% in 3Q25 from 40.3% in 2021.

• ROE (consolidated) reached 9.50% in 2025, up from 9.21% in 2021.

• Basic EPS for the period was KRW 2,658 (consolidated), up from KRW 2,590 year-over-year.

Outlook and guidance

• Continued focus on SME lending and proactive risk management expected to support stable earnings.

• The bank expects domestic growth to remain subdued due to external uncertainties and plans to focus on supporting export/import and growth companies.

• Ongoing cost control and portfolio improvement initiatives to maintain asset quality.

• Global expansion will focus on emerging markets, with the Poland subsidiary preparing for business launch.