[Edaily Reporter PARK JONG-HWA ] Due to weak bank performance, BNK Financial Group Inc.’s third-quarter net income fell by nearly 30% compared to last year.

BNK Financial Group Inc. announced on the 26th that its third-quarter revenue and net income (attributable to owners of the parent company) totaled 3.1002 trillion won and 210.5 billion won, respectively. Compared to the same period last year, revenue rose 34.9%, but net income plummeted 28.5%. Cumulative revenue and net income for the first through third quarters totaled 10.0893 trillion won and 6.2226 trillion won, respectively; while revenue rose 33.7%, net income fell 19.2%.

The deterioration in BNK Financial Group Inc.’s performance is attributed to a simultaneous decline in earnings across its core banking affiliates. Comparing results from the first three quarters of last year to this year, net income for BNK Financial Group Inc.’s banking segment fell by 113.1 billion won (Busan Bank: -99.1 billion won; Gyeongnam Bank: -14.0 billion won). In addition to a decline in non-interest income, such as fees, the exclusion of one-time gains—including the sale of the BNK Gangnam Core Office last year (54.4 billion won)—is cited as a factor contributing to this year’s deteriorating performance. Conversely, net income from non-bank affiliates increased by 47.7 billion won (Capital: 7.8 billion won; Investment & Securities: 20.8 billion won; Savings Bank: 4.4 billion won; Asset Management: 13.7 billion won; Venture Investment: 0.8 billion won, etc.).

The ratio of loans classified as substandard or worse—an indicator of asset quality—fell to 1.45%, down 0.01 percentage points from the previous quarter. However, the delinquency rate rose by 0.06 percentage points, from 1.34% to 1.40%. The common equity tier 1 ratio (the proportion of total capital raised through common stock) rose from 12.14% to 12.18%, driven by factors such as an increase in retained earnings.

On the same day, BNK Financial Group Inc. held a board meeting and decided to pay a quarterly cash dividend of 150 won per share. The company also plans to repurchase and cancel 60 billion won worth of its own shares in the second half of the year.

Park Seong-wook, Executive Vice President (CFO) of BNK Financial Group, stated, “Net income decreased year-over-year due to the impact of one-time gains recorded last year and a decline in non-interest income.” He added, “We will diligently implement the profitability improvement initiatives outlined in ‘Value-Up 2.0,’ announced last September, and do our utmost to enhance operational efficiency and productivity to repay the market’s trust.”