Industrial Bank of Korea (024110) Q4 2024 earnings summary

Executive summary

• FY24 net income reached KRW 2,446.3bn (+1.4% y/y) on a separate basis and KRW 2,673.8bn (-0.1% y/y) on a consolidated basis, driven by SME/ SOHO loan growth and reduced provisioning.

• Cost-to-income ratio improved to 35.1%, the lowest in the industry, reflecting strong cost control and income growth.

• SME loan balance increased by KRW 13.4tr (+5.7% YTD), expanding SME market share to 23.65%.

• Credit loss provisioning decreased 26.9% y/y, with credit cost ratio at 0.47% (-21bp y/y), aided by last year's pre-emptive provisioning.

• Plans to introduce quarterly dividends and enhance market communication through leadership engagement and diversified IR channels.

Financial highlights

• Consolidated net income for FY24 was KRW 2,673.8bn (-0.1% y/y); separate net income was KRW 2,446.3bn (+1.4% y/y).

• NIM for FY24 was 1.71%, slightly down from 1.74% in FY23.

• ROE (consolidated) was 8.75% and ROA was 0.61% for FY24.

• Cost-to-income ratio improved to 35.1% from 40.3% in FY23.

• SME loan market share rose to 23.65% in FY24.

Outlook and guidance

• Continued focus on SME loan growth, especially in high-growth industries.

• Ongoing efforts to reduce credit cost by revamping credit operation processes.

• Implementation of the "Corporate Value-up Plan" to enhance shareholder and stakeholder value.

• Plan to amend articles of incorporation in 1H25 to introduce quarterly dividends.