iM Bank's loans in Greater Seoul, Daejeon top 30% for first time as Hwang's strategy pays off

iM Bank marks 59th anniversary

Credit cost ratio falls below industry average

Chairman Hwang focuses on clearing bad assets, building capital

Total shareholder return rate rises 10 percentage points in two years

iM Financial Group Chairman Hwang Byung-woo. [iM Financial Group]

iM Bank, marking its 59th anniversary, has for the first time pushed its share of loans in Greater Seoul and Daejeon above 30% this year, as the lender expands its national footprint following its conversion to a nationwide commercial bank. The milestone reflects Chairman Hwang Byung-woo's strategy of clearing problem assets and tailoring growth plans for each subsidiary — an approach that has translated into improved asset quality and stronger capital buffers.

The bank held its 59th anniversary ceremony Wednesday at the main auditorium of its Suseong-dong headquarters in Daegu, where management shared the results of its expansion since becoming a commercial bank and outlined its future direction. Founded in 1967 as South Korea's first regional bank, iM Bank converted to a nationwide commercial bank in May 2024 under Hwang's leadership and changed its name the following month. In the second half of this year, it has continued to build out its national network, opening branches in the Honam region in quick succession.

The broadening of its business base is also showing up in the composition of its loan book. The share of loans extended to borrowers in Seoul, Gyeonggi Province, Incheon and Daejeon combined rose from 15.9% in 2022 to 17.8% in 2023, 18.7% in 2024 and 18.8% at the end of last year. By the end of the first half of this year, the figure had climbed to 30.4%, crossing the 30% threshold for the first time.

Asset quality indicators have also improved alongside the shift toward higher-grade assets. iM Bank's credit cost ratio fell from 0.50% at the end of last year to 0.41% in the first half of this year, coming in below the industry simple average of 0.46% as of the end of June.

iM Bank holds its 59th anniversary ceremony at the main auditorium of its Suseong-dong headquarters on Wednesday. iM Bank President Kang Jeong-hun (front row, center) poses with employees. [iM Financial]

Behind these changes lies Hwang's management philosophy of strengthening fundamentals before chasing growth. In his first year as chairman in 2024, he overhauled the business structure and growth strategies of key subsidiaries including the bank, securities arm and capital unit. Rather than aggressively expanding assets after the commercial bank conversion, he prioritized clearing bad debt and building up capital headroom first.

At iM Securities, the focus was on shedding the burden of soured real estate project financing exposure. The subsidiary set aside 295.1 billion won ($220 million) in loan-loss provisions in 2024, booking a net loss of 163.2 billion won on a standalone basis, but has since reduced its reliance on investment banking and project financing while diversifying its revenue sources. The share of net operating revenue derived from investment banking and project financing fell from 86.3% in 2022 to 8.1% in the first half of this year.

As iM Bank's expanding business base combined with improved fundamentals at key subsidiaries, the group's overall credit cost burden eased. The group credit cost ratio fell from 1.14% in 2024 to 0.51% last year and 0.49% in the first half of this year. iM Financial's common equity tier 1 ratio — which had been the lowest among bank-centered financial holding companies at the end of 2023 — rose from 11.23% at that time to 12.27% at the end of the first half of this year, a record high.

With its loss-absorption capacity strengthened, the group now has greater room to channel future earnings improvements into growth befitting a nationwide commercial bank and into expanded shareholder returns. The total shareholder return rate rose from 28.8% in 2023 to 38.8% in 2025, while the dividend per share increased from 550 won to 700 won over the same period. Hwang is also recognized among global investors as an executive who actively engages on environmental, social and governance issues and shareholder communication.

The group is also working to strengthen its wealth management capabilities on the back of its expanded national network. Last month, Hwang met with AllianceBernstein President Onur Erzan in New York to discuss ways to deepen cooperation. The two sides agreed to pursue collaboration on exchange-traded fund business as a first step, with plans to broaden the scope of their partnership to income solutions — products designed to generate regular cash flows such as interest and dividends in line with customers' life cycles.

forest@heraldcorp.com