[Edaily Reporter PARK JONG-HWA ] iM Financial Group’s third-quarter earnings fell short of last year’s results. However, earnings at its core subsidiary, iM Bank, improved compared to a year ago.

iM Financial Group announced on the 27th that its third-quarter net income (attributable to controlling shareholders) was provisionally estimated at 120.7 billion won. This represents a 1.4% decrease compared to the same period last year (122.4 billion won). Cumulative net income for the first three quarters also fell by 3.6%, from 431.7 billion won to 416.3 billion won.

However, iM Bank, the group’s core affiliate, reported a third-quarter net income of 115.8 billion won, a 5.1% increase compared to the same period last year (110.2 billion won). iM Financial explained that corporate lending drove this performance. However, on a cumulative basis for the first three quarters, net income decreased by 1.4%, from 366.6 billion won to 361.5 billion won. The net income for iM Capital, iM Securities, and iM Life for the first three quarters was 56.5 billion won, 72.2 billion won, and 11.2 billion won, respectively.

iM Financial Group views the improvement in the soundness indicators of the group and its affiliates as a positive development. In the third quarter, iM Financial Group’s Common Equity Tier 1 (CET-1) ratio reached a record high of 12.39%. iM Bank’s non-performing loan ratio and loan loss provision ratio stood at 0.77% and 0.40%, respectively, down 0.07 percentage points and 0.10 percentage points year-over-year.

Chun Byung-kyu, Executive Vice President and Group Chief Financial Officer (CFO) of iM Financial Group, “While uncertainty surrounding non-interest income has increased due to heightened market volatility and rising interest rates, we view the improvement in interest income—the foundation of our profits—as a positive development, driven by robust asset growth,” he said. “Going forward, we will strengthen our management of financial soundness and exercise even greater diligence in managing costs, such as loan loss provisions, to ensure this year continues the trend of profit improvement.”