The Industrial Bank of Korea (IBK) logged consolidated net profit of 1.164,6 trillion won in 2016, up 1.6 percent YoY, which includes those of IBK Capital and IBK Investment and Securities.
IBK posted its own net profit of 1.267 trillion won, up 0.3 percent YoY, the bank said on Feb. 14. The bank attributed the boost in interest earnings from loans provided to SMEs to its net profit.
The bank said net interest margin stayed the same as the preceding year at 1.91 percent, but the bank succeeded in attracting low interest deposits for its loan funds to secure stable interest earnings.
The bank’s loans to small- and medium-sized companies last year increased by 8.3 trillion won, or 6.6 percent, from the preceding year to 134.4 trillion won, accounting for 22.6 percent of loans provided to SMEs by all banks in Korea, the most among the banks.
Loans in default came to 0.46 percent and its non-performing loan (NPL) ratio came to 1.35 percent, up 0.04 percentage points from the preceding year, the bank said.
IBK officials said the outlook for this year is not rosy, but the bank will try to change its profit structure to rationalize its operation as much as it can, and undertake businesses that have great potential to generate profits.
“In consideration of the number of SMEs that should be promoted to MEs in 2016, we set our sales target in 2015 at a net increase of 100 billion won in ME loan balance for the coming year,” the company said. This change to the ME Total Management System will facilitate the more fine-tuned handling of old clients and allow for a more aggressive marketing approach with ME clients in good credit standing.
“This year, we will continue expanding the scope of our partnerships with public organizations and large corporations, while strengthening our new alliance with creative economy and innovation centers, all the while playing a leading role in the development of regional economies,” the company says.
In a bid to preemptively respond to the rapid changes occurring in financial markets, IBK will adopt the most advanced technologies, such as big data and P2P, as we reinforce non-face-to-face channels, including Internet-based and mobile banking services.
New products will also be introduced to finance more SMEs in step with the ever-evolving market paradigm. The Big Data Plus Loan will finance up to 100 million won in credit loans to start-ups that have been in operation more than one year based on analysis and evaluation of their financial data. The IBK Funding for Hope is a special product in that it offers guaranteed loans to any SME that has secured a preset amount of investment through crowd funding.
In an effort to assist with the sustainable growth of IBK’s loyal corporate clients that have been clients for a significant length of time, the Corporate Loans for Trusted Corporate Clients provides financing for working capital and facility investments.
The Franchise Mobile Purchase Loan is a loan product specialized for franchisees that can secure low-interest loans for their working capital on collateral made in the form of guarantees by a guarantors. These new products will allow IBK to maintain market dominance, while fulfilling their role as a reliable financial partner to small- and medium- sized enterprises, according to the company.
Sending Money to South Korea
Xendpay is a leading money transfer service provider in sending money to South Korea. “Sometimes, the idea of transferring money abroad or sending money home to loved ones can seem a bit daunting, but at Xendpay we handle the whole process online, so there are no queues, no paperwork and no fuss,” according to the company. Xendpay says it has the expertise and experience to help send money home with minimum fuss. “We’re part of a leading provider of international money transfer services which has transferred over $4 billion since its inception in 2005, so you know you’re in good hands.”
All transactions are authorized by the Financial Conduct Authority (FCA).
A popular way of transferring South Korean won is through a bank or a money sending bureau, as these are accessible and easy to use services. While these services have their advantages they are costly ways to transfer money as they offer poor exchange rates for the South Korean Won and charge high transfer fees. Is there an alternative.
A specialist money transfer service like Xendpay can save you both time and money when sending money to South Korea, they said. Cheap, convenient and secure money transfers can be made 24/7 online.
“We ensure that your information provided is secure by operating with the latest online security protocols and a high level of encryption implemented across our websites where sensitive information may be entered.”