IBK Industrial Bank of Korea Surpasses ₩260.3 Trillion in SME Loans

IBK Industrial Bank of Korea Surpasses ₩260.3 Trillion in SME Loans

IBK Industrial Bank of Korea (IBK) announced that its outstanding loans to small and medium-sized enterprises (SMEs) exceeded ₩260.3 trillion in the third quarter of 2025. This represents an increase of ₩13.1 trillion compared to the end of the previous year, highlighting IBK's significant role in supporting SME financing in South Korea. This expansion of SME lending is attributed to IBK's proactive efforts to support the growth and development of SMEs amidst a challenging economic environment. In particular, IBK's role is further emphasized in the context of increased demand for funds from SMEs, aligning with the economic revitalization policies of the South Korean government. IBK emphasizes its commitment to contributing to national economic development through mutual growth with SMEs and will strive to strengthen the competitiveness of SMEs through various financial support programs. In addition, IBK plans to lead the continuous growth of SMEs by providing diverse support measures, such as supporting the digital transformation of SMEs and assisting their entry into overseas markets. These efforts are expected to promote the stable growth of SMEs, which are the foundation of the South Korean economy, and contribute to revitalizing the entire national economy.

IBK Industrial Bank of Korea recorded a cumulative net profit of ₩2.2597 trillion on a consolidated basis in the third quarter of 2025, continuing its stable growth trend. This is a 2.8% increase compared to the same period last year, and it is evaluated that solid performance was achieved despite difficult economic conditions. This achievement is analyzed as a result of IBK Industrial Bank of Korea's efforts to improve profitability while remaining faithful to its original role of supporting SMEs. In particular, it is believed that the increase in non-interest income and efforts to improve cost efficiency had a positive impact on the increase in net profit. However, consolidated net profit for the third quarter of 2025 was ₩751.1 billion, a 6.5% decrease compared to the same period last year. Despite this decrease in net profit, IBK Industrial Bank of Korea announced that it plans to continue to expand investment to strengthen its mid- to long-term growth base. In addition, it emphasized that it will accelerate digital financial innovation and strengthen ESG management to secure sustainable growth engines. IBK Industrial Bank of Korea plans to focus on providing innovative financial products and services tailored to the changing financial environment and increasing customer satisfaction.

IBK Industrial Bank of Korea's cumulative net profit on a separate basis in the third quarter of 2025 was ₩1.9973 trillion, a slight increase of 0.1% compared to the same period last year. This means that stable profitability was maintained despite difficult economic conditions. However, there are also challenges to be resolved, such as a decrease in interest income and increased volatility in non-interest income. IBK Industrial Bank of Korea plans to reorganize its asset portfolio and focus on discovering profitable investment destinations in order to overcome the decrease in interest income. In addition, it plans to strengthen its digital financial platform and expand investment in developing new financial products and services in order to expand non-interest income. In particular, IBK Industrial Bank of Korea plans to promote efficient fund allocation, taking into account profitability, even in the operation of policy funds to support SMEs. Through this, IBK Industrial Bank of Korea is expected to secure a stable revenue base and lay the foundation for continuous growth. In the future, IBK Industrial Bank of Korea will strive to contribute to the development of the South Korean economy while maintaining a balance between profitability and social responsibility.

IBK Industrial Bank of Korea's NPL (Non-Performing Loan) ratio was 1.35%, and its delinquency rate was 1.00%, a slight increase compared to the same period last year. This is analyzed as a result of the recent deterioration of the economic situation and the decline in the debt repayment ability of SMEs due to rising interest rates. In particular, there are concerns that as high interest rates continue, the interest burden on SMEs will increase, which could lead to a vicious cycle of rising delinquency rates. In response to this situation, IBK Industrial Bank of Korea plans to strengthen its preemptive risk management system and expand support for SMEs experiencing difficulties in debt repayment. In addition, it plans to make various efforts to minimize the occurrence of bad debts, such as strengthening loan screening and increasing the collateral coverage ratio. IBK Industrial Bank of Korea will continue to do its best to maintain stable soundness indicators while faithfully fulfilling its original role of supporting SMEs. Through these efforts, IBK Industrial Bank of Korea is expected to contribute to supporting the stable growth of the South Korean economy.

IBK Industrial Bank of Korea's credit cost ratio was 0.44%, an improvement of 4bp compared to the end of the previous year. This is evaluated as a result of efforts to manage asset soundness. The improvement in the credit cost ratio is having a positive impact on IBK Industrial Bank of Korea's profitability, and it is expected that a stable revenue base can be secured through continuous asset soundness management in the future. IBK Industrial Bank of Korea plans to continue to focus on upgrading its risk management system and preventing the possibility of bad debt occurrence in advance. In addition, it plans to expand customized support programs for SMEs with weak debt repayment capabilities to prevent the transition to bad debts. These efforts are expected to strengthen IBK Industrial Bank of Korea's financial soundness and lay the foundation for sustainable growth. IBK Industrial Bank of Korea will continue to do its best to contribute to the development of the South Korean economy through sound asset management.

IBK Industrial Bank of Korea's cumulative interest income for the third quarter was ₩5.7564 trillion, a 2.6% decrease compared to the same period last year, and interest income for the third quarter was ₩1.9529 trillion, a 0.2% decrease compared to the same period last year. This is analyzed as a result of the impact of rising interest rates and the narrowing of the net interest margin. In particular, it is believed that the increase in funding costs due to the increase in the base interest rate has affected the decrease in interest income. IBK Industrial Bank of Korea plans to expand profitable asset management and focus on increasing non-interest income in order to overcome the decrease in interest income. In addition, it plans to strengthen its digital financial platform to increase customer convenience and expand its customer base by developing new financial products and services. IBK Industrial Bank of Korea will continue to actively respond to the changing financial environment and do its best to build a stable revenue structure through revenue diversification. Through these efforts, IBK Industrial Bank of Korea is expected to lay the foundation for continuous growth and contribute to the development of the South Korean economy.

IBK Industrial Bank of Korea's cumulative non-interest income for the third quarter increased by 66.8% year-on-year to ₩620.8 billion, but non-interest income for the third quarter decreased by 36.6% year-on-year to ₩135.2 billion. This is analyzed as a result of the expansion of market volatility and the contraction of investment sentiment. IBK Industrial Bank of Korea plans to secure a stable revenue base and focus on increasing fee income in order to reduce non-interest income volatility. In addition, it plans to strengthen its digital financial platform to provide customers with a variety of financial products and services, and expand its asset management consulting services. IBK Industrial Bank of Korea will continue to do its best to diversify its revenue structure and establish a stable growth base by expanding non-interest income. Through these efforts, IBK Industrial Bank of Korea is expected to strengthen its competitiveness in the South Korean financial market and contribute to increasing customer satisfaction. In particular, it will contribute to strengthening the competitiveness of SMEs by developing customized financial products and services for SMEs and through digital financial innovation.

As of the end of September, IBK Industrial Bank of Korea's outstanding loans to SMEs increased by 5.3% from the end of the previous year to ₩260.303 trillion. This is a result that once again confirms IBK Industrial Bank of Korea's important role in supporting SME financing in South Korea. IBK Industrial Bank of Korea emphasizes its commitment to contributing to national economic development through mutual growth with SMEs and will strive to strengthen the competitiveness of SMEs through various financial support programs. In particular, IBK's role is further emphasized in the context of increased demand for funds from SMEs, aligning with the economic revitalization policies of the South Korean government. IBK Industrial Bank of Korea plans to lead the continuous growth of SMEs by providing diverse support measures, such as supporting the digital transformation of SMEs and assisting their entry into overseas markets. These efforts are expected to promote the stable growth of SMEs, which are the foundation of the South Korean economy, and contribute to revitalizing the entire national economy.