iM Financial Group Co., Ltd. posts cumulative third-quarter net profit of 416.3 billion won... “Corporate loans rise as productive finance expands”

[Financial News] iM Financial Group Co., Ltd. posted cumulative net profit of 416.3 billion won through the third quarter of this year, increasing its lending assets and interest income on the back of expanded productive finance. Its common equity Tier 1 (CET1) ratio stood at a record 12.39%. The group also completed a 30 billion won share buyback and will cancel all the shares within a month, continuing its shareholder returns. 
On the 27th, iM Financial Group Co., Ltd. announced that it had posted cumulative net income attributable to owners of the parent of 416.3 billion won through the third quarter of this year. This was down 3.6% from 431.7 billion won in the same period a year earlier. 
In line with its push for a “major shift to productive finance,” the group’s lending assets, led by iM Bank and iM Capital, grew 7.6% from the end of the previous year. As a result, the group’s interest income rose 5.6% from the same period a year earlier. 
Asset quality indicators also improved. In the third quarter, the non-performing loan ratios for the group and the bank stood at 1.18% and 0.77%, respectively. Their credit cost ratios also fell to 0.48% for the group and 0.40% for the bank.
iM Bank posted cumulative net profit of 361.5 billion won, down 5.1% from 462 billion won in the same period a year earlier. However, interest income continued to grow as won-denominated loans increased. Such loans totaled 62.0425 trillion won in the third quarter, up 6.8% from the same period a year earlier. Corporate loans, in particular, grew by 3.8 trillion won (10.8%) through the end of September, driving growth in total loans and interest income. Thanks to its asset quality management, the amount set aside for loan loss provisions fell 11.8% from the same period a year earlier.
iM Capital’s cumulative net profit reached 56.5 billion won, up 20% from the same period a year earlier and surpassing its full-year net profit for last year. Operating assets grew 14.9%, while qualitative growth centered on auto finance and improved asset quality helped reduce provision charges by 19.1%.
iM Securities posted cumulative net profit of 72.2 billion won on a standalone basis, up 10.4% from the same period a year earlier, as net operating revenue improved amid an active capital market. iM Life posted cumulative net profit of 11.2 billion won. 
The group is also continuing its shareholder returns. iM Financial Group Co., Ltd. has completed the additional 30 billion won share buyback it announced in July. The shares represent 1.1% of its total shares outstanding, and all of them are scheduled to be canceled within one month. Since announcing its corporate value enhancement plan in 2024, iM Financial Group Co., Ltd. has bought back and canceled approximately 7.4% of its total shares outstanding on the market.
The provisional CET1 ratio improved by 0.12 percentage points from the previous quarter to 12.39%. 
During the third-quarter earnings call that day, Cheon Byeong-gyu, iM Financial Group Co., Ltd.’s vice president and group chief financial officer (CFO), said, “Although increased market volatility and rising interest rates have heightened uncertainty around non-interest income, we view it positively that interest income—the most fundamental source of earnings—is improving on the back of solid asset growth.” He added, “Going forward, we will strengthen our asset quality management and be more thorough in managing costs, including loan loss provisions, so that we can sustain the earnings improvement trend throughout the year.” 
[email protected] Lee Hyun-jung Reporter