Yoon Jong-won (second from left), president of the IBK, listens to Kim Doo-sang (far left), the CEO of Happy L&B which develops medical devices in Icheon, Gyeonggi Province on June 15. (Photo: IBK)

The Industrial Bank of Korea (IBK) posted 592 billion won in net profit in the first quarter of 2021. This is an increase of 18.3 percent from 500.5 billion won in the same period of last year. The lender’s net profit stood at 539.8 billion won.

“We could achieve an increase in net profit thanks to the growth of loan assets through support for small and medium-sized enterprises, stable soundness management based on a recovery in business conditions of our corporate customers and improvements in the performances of our subsidiaries whose efforts to diversify profit-generating sources paid off handsomely,” the IBK explained.

The balance of IBK's loans to small and medium-sized enterprises rose by 5.3 trillion won (2.8 percent) to 192.1 trillion won from the end of 2020.

Its share in the financial market for small and medium-sized enterprises grew by 0.01 percentage points from the end of last year to 23.11 percent, the highest ever.

Due to abundant liquidity and economic improvement centered on exporters, its credit cost ratio fell 0.1 percentage point on-year to 0.29 percent. Its ratio of substandard loans and delinquency ratio stood at 1.05 percent and 0.35 percent, respectively, improving 0.24 percentage points and 0.17 percentage points, respectively, compared to the same period of 2020.

The IBK’s affiliates posted net profit of 90.1 billion won, up 148.9 percent from a year earlier on the back of strong performances by major subsidiaries such as IBK Capital, IBK Securities and IBK Insurance.

“In the past, loan assets increased during an economic crisis led to a rise in profits in an economic recovery period and our business performances will gradually improve when the results of the IBK’s additional investment in IBK affiliates are reflected,” an IBK official said.

“We will continue to cement the foundation for sustainable growth through ESG management and the acceleration of the pace of our digital transformation.”

IBK President Visit to Industrial Sites

IBK said that IBK President Yoon Jong-won visited Seoul F&B in Wonju, Gangwon Province, and Happy L&B in Icheon, Gyeonggi Province, on June 15.

Seoul F&B produces more than 130 different dairy products. It not only practices eco-friendly management at all production stages, but contributes to the growth of its local communities through employee welfare and various social contributions such as an in-house cafe and a daycare center.

“I think that Seoul F&B has grown 25 percent every year since its establishment in 2005 because of its CEO’s clear management philosophy to actively put ESG management into practice,” Yoon said. “I hope that Seoul F&B will continue to grow with the IBK as its reliable financial partner in the future.”

After Seoul F&B, Yoon went to Happy L&B, a company that has been recognized for its technological prowess in the global market by developing cosmetic products with disposable packaging and home medical devices such as bedding-type medical devices and automatic heaters.

“The IBK Financial Doctor Program can give your company a helping hand as the program presents customized supports after a comprehensive diagnosis of your company's management and financial conditions,” Yoon said in response. “We hope that the COVID-19 will end soon, revving up your company’s overseas exports.”

Happy Parenting Event

The IBK announced on June 14 that it will hold the Happy Parenting with Mother-K Event until the end of July in partnership with Mother-K, a brand specializing in products for childbirth and childcare until the end of July.

The event targets new infants and toddlers under the age of five with IBK deposits during the period and will provide 2,000 parents of infants and toddlers with two types of Mother-K premium baby detergent “DIA” and bonus points of 5,000 won that can be used like cash in Mother-K Mall on a first-come-first-served basis.

Customers who satisfy these conditions will receive text messages to apply for the prizes and bonus points the following day.

In addition, if the parents of them subscribe to IBK deposit products, they will be given additional bonus points of 10,000 won for Mother-K Mall to 100 people in a draw.