IBK Net Profit Dips to 1.44 Trillion Won
The lender saw consolidated net profit fall 4.4% year-on-year to 1.44 trillion won.
The specialized lender for small and medium enterprises, IBK, reported a consolidated net profit of 1.44 trillion won for the first half of 2026, a 4.4% decrease compared to the same period last year. On a standalone basis, net profit fell 9.0% year-on-year to 1.21 trillion won. The company attributed the overall profit decline to foreign exchange losses resulting from a sharp rise in exchange rates, though it noted that performance remained steady due to valuation gains from investments in innovative firms and net interest margin management through funding efficiency.
Credit growth remained a primary driver as the balance of loans to small and medium enterprises increased by 8.1 trillion won from the end of the previous year to reach 270 trillion won. This growth allowed the company to maintain a market share of 24.6%, which it described as its highest level to date. Asset quality remained stable with a non-performing loan ratio of 1.27% and a credit loss expense ratio of 0.46%, the latter of which decreased by 1 basis point from the end of the prior year.
International operations showed mixed results across key markets. The company's Chinese unit recorded a net profit of 14.5 billion won for the first half of 2026, down from 26.9 billion won for the full year of 2025. In Indonesia, the bank returned to profitability with a net profit of 9.5 billion won in the first half of 2026, following a net loss of 47.8 billion won in 2025.
Looking ahead, the company plans to expand its presence in emerging markets by establishing a legal entity in Vietnam and starting operations in Poland to support small and medium enterprises abroad. It also intends to strengthen its AI capabilities through organizational restructuring and the provision of hyper-personalized services via digital channels. The company said it will continue efforts to reduce credit loss expenses through rigorous soundness management.