Growth Potential
Sustained growth backed by leadership in SME Finance
SME Loans Balance Surpasses KRW 261.9 trillion; Market Share of 24.41%—an All-Time High
As of the end of 2025, IBK's total assets on a separate basis increased by KRW 29.2 trillion (+6.1%) from the previous year, reaching KRW 508.0 trillion. This is attributed to an increase in SME loans (KRW 14.7 trillion, +5.9%), with the outstanding balance of SME loans reaching KRW 261.9 trillion, marking a record high market share of 24.41%.
Retail loans increased by KRW 0.3 trillion (0.7%) from the previous year to KRW 43.3 trillion. Although the pace of growth moderated in line with the government's household debt management policy stance, the bank sustained stable growth by focusing its lending on end-users with genuine housing needs.
In 2026, IBK plans to further strengthen its position as the market leader in the SME loan sector through quality growth aligned with its "Productive Finance" strategy, while pursuing sound, earnings- and quality-conscious growth in retail lending.
Profitability
Stable profitability amid global volatility
In 2025, IBK's net income on a separate basis decreased by KRW 42.3 billion compared to the previous year, reaching KRW 2,385.8 billion. This is attributable to a decrease in interest income due to falling market interest rates and an increase in general and administrative expenses, despite a KRW 466.7 billion year-on-year increase in non-interest income.
The bank's interest income decreased by KRW 71.1 billion year-on-year, as the decline in net interest margin (NIM) outweighed the increase in interest-earning assets driven by the expansion of SME loans. Non-interest income rose significantly to KRW 720.9 billion, supported by increased gains on securities amid a strong equity market and base effects related to foreign exchange valuation gains and losses.
Revenue Diversification
Diversifying subsidiary revenues to boost profitability
IBK's consolidated net income for 2025 was KRW 2,718.9 billion, a year-on-year increase of KRW 64.6 billion. This increase was primarily due to an increase in non-interest income. In the interest income sector, the bank's interest income decreased by KRW 71.1 billion due to factors such as falling market interest rates. Consequently, consolidated interest income also decreased by 1.8% year-on-year.
Despite a decline in the bank's standalone net income, the net income of subsidiaries improved, reflecting investment gains from promising innovative companies, which served as a key driver of the increase in consolidated net income.
IBK Capital recorded net income of KRW 245.6 billion, leading the improvement in overall profitability on the back of growth in financial assets and increased investment income. IBK Securities also improved its earnings and strengthened its foundation for future growth through asset management and risk management in response to changing market conditions.
Going forward, IBK will continue to diversify its revenue base through tailored strategies for each subsidiary.
Asset Quality
Maintaining stable asset quality backed by proactive asset quality and risk management
As of the end of 2025, IBK's NPL stood at 1.28%, improving by 0.06 percentage points year-on-year, while the credit cost ratio was maintained at a manageable level of 0.47%.
The coverage ratio declined year-on-year to 107.7%; however, overall asset quality remained stable, supported by active sales and write-offs of NPLs and strengthened management of potentially distressed loans.
IBK plans to enhance monitoring of economically sensitive sectors and at-risk corporate borrowers, while actively utilizing restructuring programs to support the normalization of corporate operations.
Capital Adequacy
Capital ratios above regulatory requirements
As of the end of 2025, IBK's BIS total capital ratio stood at 14.78%, Tier 1 capital ratio at 13.26%, and Common Equity Tier 1 (CET1) ratio at 11.48%, maintaining a stable level that significantly exceeds the regulatory requirements.
CET1 capital increased year-on-year to KRW 30,318.3 billion, influenced by factors such as an increase in consolidated net income. Additional Tier 1 capital recorded an increase, influenced by the issuance of hybrid capital securities, while risk-weighted assets increased, attributed to an increase in SME loans.
IBK plans to maintain capital adequacy at a stable level by continuously generating profits and securing an appropriate level of capital.
Dividend Policy
Strengthening shareholder value through a stable dividend policy
Over the past five years, IBK's average cash dividend payout ratio has been 32.9%, reflecting the bank's stable dividend policy.
IBK is currently targeting a dividend payout ratio on a separate basis in line with its CET1 ratio bands, pursuant to its "IBK Corporate Value-up Plan" (disclosed in December 2024). The CET1 ratio for the current period rose slightly year-on-year to 11.48%, and the bank maintained a payout ratio of 35%, the upper limit of the applicable CET1 ratio band, for the second consecutive year.
Going forward, IBK will continue to pursue a dividend policy that balances corporate value-up and shareholder returns, aiming to ensure the sustainability of dividends and their gradual expansion based on its stable earnings-generating capacity.
