GROWTH POTENTIAL
As the leading specialized bank for SME finance in Korea, IBK is maintaining a steady growth trajectory.
As of the end of 2024, IBK’s total assets on a separate basis increased by KRW 26.1 trillion (5.8%) from the previous year, reaching KRW 478.9 trillion. This is attributed to an increase in SME loans (KRW 13.4 trillion, +5.7%), with the outstanding balance of SME loans reaching KRW 247.2 trillion, marking a record high market share of 23.65%.
Retail loans increased by KRW 0.9 trillion (2.1%) from the previous year to KRW 43.0 trillion, showing an upward trend due to the decline in interest rates and recovery in housing transactions in the metropolitan area in the second half of 2024. However, in line with the government’s policy stance on managing household debt, IBK is focusing on maintaining market share through qualitative growth and continuing a growth strategy centered on profitability and asset quality. Other loans decreased slightly year on year to KRW 10.4 trillion.
In 2025, IBK plans to further strengthen its position as the market leader in the SME loan sector and sustain growth momentum by supporting promising companies in high-growth industries, particularly those within the government’s five key strategic areas.
PROFITABILITY
Despite the global economic slowdown, IBK has maintained a stable revenue base.
In 2024, IBK’s net income on a separate basis increased by KRW 16.6 billion (0.7%) compared to the previous year, reaching KRW 2,428.1 billion. This is due to a decrease in provisioning by KRW 696 billion (-30.3%), which resulted in a KRW 147.8 billion increase in operating income.
The bank’s interest income decreased by KRW 190.6 billion (-2.6%) year on year to KRW 7,276.1 billion. Although interest-earning assets grew by KRW 9.9 trillion, profitability was impacted by a 9bp decrease in net interest margin (NIM) due to falling market interest rates. Non-interest income recorded KRW 254.2 billion, affected by a KRW 151.4 billion foreign exchange valuation loss caused by a sharp rise in exchange rates and a KRW 73.8 billion decrease in gains on loan disposals due to reduced special sales by KAMCO.
In 2025, despite expected volatility in the global economic and trade environment due to policy uncertainties following the inauguration of the new U.S. administration, IBK will pursue balanced growth by expanding funding for SMEs and implementing systematic asset quality management. Additionally, the bank will lay a foundation for future growth by providing tailored financial services for each stage of an innovative company’s lifecycle, strengthening the competitiveness of its subsidiaries, and expanding its global financial belt.
REVENUE DIVERSIFICATION
IBK is diversifying the revenue base of its subsidiaries to drive global business growth.
IBK’s consolidated net income for 2024 was KRW 2,654.3 billion, a year-on-year decrease of KRW 20.9 billion. This decline was primarily due to a decrease of KRW 150.7 billion in net income from the private equity subsidiary, despite improvements in the bank's overall profitability.
In the interest income sector, the bank's interest income decreased by KRW 190.6 billion due to factors such as falling market interest rates. Consequently, consolidated interest income also decreased by KRW 34.7 billion (-0.4%) compared to the previous year, recording KRW 7,891.9 billion.
Subsidiary performance varied by region. PT Bank IBK Indonesia Tbk achieved a net income of KRW 18 billion, an increase of approximately 15.7% compared to the previous year. This growth was driven by a reduction in provisioning and an expansion of earning assets, marking its highest performance since establishment. On the other hand, IBK China Ltd. recorded a net income of KRW 32.6 billion, a decrease of 14.3% year on year, due to economic slowdown and declining market interest rates. However, the subsidiary is focusing on establishing a foundation for medium- to long-term growth through digital transformation and strengthening local operations.
In 2025, IBK plans to further diversify its revenue base through tailored strategies for each global subsidiary while continuously pursuing management strategies focused on expanding its global financial belt and maintaining asset quality.
ASSET QUALITY
IBK is maintaining stable asset quality through proactive credit management and reduction of
non-performing loans.
As of the end of 2024, IBK’s non-performing loans (NPL) increased by KRW 1,079.8 billion compared to the previous year due to an increase in delinquent and defaulted loans, and the NPL ratio rose by 0.29%p to 1.34%.
The coverage ratio (credit loss provision balance ÷ NPL balance) recorded a decrease of 29.5%p from the previous year to 114.03%, and the loan delinquency rate was maintained at a manageable level of 0.80%, despite rising interest rates and economic slowdown.
IBK plans to strengthen credit risk assessments for industries with high economic sensitivity and companies with potential insolvency concerns, and actively utilize restructuring systems to support the normalization of corporate management. The bank will continue to manage potential non-performing loans and actively reduce bad debts through sales and write-offs to ensure stable management of the NPL ratio and coverage ratio.
CAPITAL ADEQUACY
IBK is maintaining a stable capital ratio that exceeds the regulatory ratio.
As of the end of 2024, IBK's BIS total capital ratio stood at 14.69%, Tier 1 capital ratio at 13.04%, and Common Equity Tier 1 (CET1) ratio at 11.32%, maintaining a stable level that significantly exceeds the regulatory requirements (total capital ratio of 11.5%, Tier 1 capital ratio of 9.5%, and CET1 ratio of 8.0%).
CET1 capital increased by KRW 2,158.7 billion from the previous year to KRW 28,450.4 billion, influenced by factors such as an increase in consolidated net income of KRW 2,654.3 billion. Additional Tier 1 capital recorded an increase of KRW 189.5 billion from the previous year to KRW 4,337.7 billion, influenced by a net increase in hybrid capital securities (KRW 180 billion). Tier 2 capital recorded an year-on-year increase of KRW 56.8 billion to KRW 4,137.9 billion, due to factors such as an increase in excess provisions (KRW 60.3 billion).
As of the end of 2024, risk-weighted assets amounted to KRW 251,437.1 billion, an year-on-year increase of KRW 19,318.5 billion, attributed to the net increase in SME loan assets (KRW 13,440.6 billion).
IBK plans to maintain capital adequacy at a stable level by continuously generating profits and securing an appropriate level of capital.
DIVIDEND POLICY
IBK is committed to enhancing shareholder value through a stable dividend policy.
Over the past five years, IBK’s average cash dividend payout ratio has been 31.8%. In 2024, the payout ratio increased by 2.5%p year on year to 35.0%, reflecting the bank’s continuous efforts to enhance performance and expand shareholder returns. IBK’s earnings per share (EPS) for 2024 stood at KRW 2,835, demonstrating stable profitability. Moving forward, IBK plans to maintain a stable payout ratio in line with its corporate value-up plan. Additionally, the bank will continue striving to enhance shareholder value by increasing the dividend per share through improved business performance.