Industrial Bank of Korea (024110) Q4 2025 earnings summary

Executive summary

• Consolidated net income for FY25 was KRW 2,718.9bn, up 2.4% year-over-year, driven by improved non-interest income and stable interest income from SME lending.

• Total loans grew 5.0% year-to-date to KRW 315.6tn, with SME loans up 5.9% and SME market share reaching 24.4%.

• Asset quality improved, with the NPL ratio declining to 1.28% and the credit cost ratio slightly improving to 0.47%.

Financial highlights

• Consolidated net income: KRW 2,718.9bn (+2.4% YoY); Bank net income: KRW 2,385.8bn (-1.7% YoY).

• Net interest margin (NIM) remained stable at 1.55% for FY25.

• Cost-to-income ratio improved to 31.7% from 33.9% in the previous year.

• Return on equity (ROE) was 7.71%, and return on assets (ROA) was 0.56% for FY25.

Outlook and guidance

• Continued focus on SME lending and productive finance to support industrial and regional growth.

• Ongoing preemptive provisioning for future credit losses to maintain asset quality.