CET1 ratio hits record 12.39%

30 billion won buyback completed

[iM Financial Group]
[iM Financial Group]

iM Financial Group posted a cumulative net profit of 416.3 billion won ($315 million) for the first three quarters of this year, the group announced Tuesday. Growth in loan assets — driven mainly by corporate lending at iM Bank — boosted interest income while the credit cost ratio fell.

The nine-month net profit attributable to controlling shareholders was down 3.6 percent from the same period last year. Third-quarter net profit came in at 120.7 billion won, a 1.4 percent decline year on year.

Group loan assets grew 7.6 percent from the end of last year, led by iM Bank and iM Capital, pushing interest income up 5.6 percent from the same period a year earlier.

As of end-September, the group's and the bank's substandard-and-below loan ratios stood at 1.18 percent and 0.77 percent, respectively, showing improvement. The cumulative credit cost ratio also fell, to 0.48 percent for the group and 0.40 percent for the bank.

iM Bank, the group's core subsidiary, recorded a cumulative net profit of 361.5 billion won for the first three quarters. Corporate loans expanded by 3.8 trillion won, or 10.8 percent, through the end of September, driving growth in total loans and interest income.

Loan-loss provisions fell 11.8 percent from the same period a year earlier. With corporate loan expansion underpinning interest income and provisioning burdens easing, the bank strengthened its earnings base.

iM Capital posted a cumulative net profit of 56.5 billion won, up 20 percent year on year, as operating assets grew 14.9 percent from the end of last year and loan-loss provisions declined 19.1 percent. Its nine-month cumulative net profit surpassed its full-year earnings for last year.

iM Securities recorded a cumulative net profit of 72.2 billion won on a standalone basis, up 10.4 percent from the same period last year, as net operating revenue improved on the back of a more active capital market. iM Life posted a cumulative net profit of 11.2 billion won.

iM Financial completed an additional share buyback of 30 billion won announced in July. The repurchased shares, equivalent to 1.1 percent of total shares outstanding, are set to be fully canceled within one month. Since the group unveiled its corporate value enhancement plan in October 2024, it has bought back and canceled approximately 7.4 percent of its total issued shares.

The group's Common Equity Tier 1 ratio stood at a preliminary 12.39 percent at end-September, up 0.12 percentage points from the previous quarter and the highest level on record.

"There is growing uncertainty around non-interest income amid rising market volatility and higher interest rates, but we view positively the fact that interest income is improving on the back of solid asset growth," said Cheon Byeong-gyu, executive vice president and chief financial officer of iM Financial. "We will continue to strengthen asset quality management to sustain the momentum of earnings improvement."


forest@heraldcorp.com