Board approves quarterly cash dividend of 150 won per share
BNK Financial Group's cumulative net profit for the first three quarters of this year fell 19.2% from a year earlier. The board approved a quarterly cash dividend of 150 won per share and a share buyback and cancellation program worth 60 billion won ($45.3 million) for the second half.
According to an electronic disclosure filed Monday with the Financial Supervisory Service, BNK Financial said its cumulative consolidated net profit for the period attributable to controlling interests came to 622.3 billion won, down 147.7 billion won, or 19.2%, from the same period last year.
Operating profit rose over the period, but net profit was weighed down by the base effect of a one-time gain of 100.9 billion won recorded last year from the sale of BNK Gangnam Core Office, as well as a decline in non-interest income.
Net profit from the banking segment totaled 557.3 billion won, down 113.1 billion won from a year earlier. Busan Bank accounted for 99.1 billion won of the decline, while Kyongnam Bank contributed 14 billion won.
The non-bank segment posted net profit of 213.7 billion won, up 47.7 billion won over the same period. Among affiliates, BNK Investment & Securities gained 20.8 billion won, BNK Asset Management added 13.7 billion won, BNK Capital contributed 7.8 billion won, BNK Savings Bank added 4.4 billion won, and BNK Venture Investment posted an 800 million won increase. The improved performance across non-bank affiliates partially offset the decline in the banking segment.
Asset quality indicators were mixed. The substandard-and-below loan ratio edged down 0.01 percentage point from the previous quarter to 1.45%, while the delinquency rate rose 0.06 percentage point to 1.40%. BNK Financial said its asset quality indicators remain "somewhat below the industry average, but continued management is needed."
The common equity tier 1 ratio rose 0.04 percentage point from the previous quarter to 12.18%, supported by risk-weighted asset management and growth in retained earnings.
The board also resolved Monday to pay a quarterly cash dividend of 150 won per share and to carry out a 60 billion won share buyback and cancellation program in the second half.
Park Seong-uk, executive vice president and chief financial officer of BNK Financial, said net profit declined from a year earlier due to the impact of last year's one-time gains and a drop in non-interest income. "We will do our best to faithfully execute the profitability improvement tasks under Value-Up 2.0, announced in September, while enhancing operational efficiency and productivity to live up to the market's trust," he said.
forest@heraldcorp.com
