KEB's Outstanding First Half

Net profit rises to 1.132 tln won in H1 with Q2 net profit jumping 470 pct with 1,756 won in per share earnings

Korea Exchange Bank(KEB) had a strong first half with net profit rising to 1.132 trillion won, up 470.2 percent from the previous quarter, with per share earnings coming to 1,756 won, the bank said recently.
The figures are up 162.1 percent YoY, which stood at 507.8 billion won and is up 29.2 percent compared to the previous quarter or 256.6 billion won.
Due to the rise of standard interest rate set by the Bank of Korea, the net interest margin in the second quarter rose to 2.72 percent from 2.63 percent in the previous quarter, boosting the net interest earnings in the second quarter accordingly.
The loss provision fell 22.9 percent in the second quarter from the previous quarter at 114.3 billion won and the non-performing asset rate fell to 1.36 percent from 1.44 percent in the second quarter, while the default rate improved to 0.67 percent from 1.08 percent in the first quarter, improving credit health indicators.
BIS ratio recorded 14.4 percent Tier 1 Capital increased to 11.91 percent in the second quarter from 11.52 percent in the previous quarter, while total own capital rose 1.6 percent from the previous quarter to 9.3 trillion won in the second quarter.
KEB kept its leading position in the foreign exchange market with its share of 45 percent, with its share of export market at 33 percent and import market at 30 percent, showing its strength in trade financing and foreign exchange dealings.
KEB will try to continue to be a top bank this year, if not the largest bank, by pushing its four major tasks in its management.
First, KEB will try to secure its growth with sustainable profitability. It will aim at increasing its assets at proper levels in consideration of the inflate rate and real GDP growth. It will continue to work for boosting the health of its portfolio assets.
It will continue to prop up the effectiveness of its operation with stern control of expenses.
KEB will also strive for enhancing its core capacity segregated and competitive always. It will secure increased number of well-healed new customers. It will at the same time try to keep its market dominance in the trade finance and the foreign exchange markets to pave the way for the expansion of its base for core operations and continues expansion of its overseas operations.
The bank will also try to create synergy among its operational sectors with an excellent implementation capacity based on integration and effectiveness. It will also try to settle a risk manage culture that can back up a healthy growth through firm internal management control and adherence to rules. It will try to maintain a sound management base amid uncertain financial economic conditions with management strategies for safe real performance records.
KEB with a catchphrase of "ceaseless challenge to embrace the world," opened a new branch in Dongpanpyo, Gyeonggi Province, and will open Seopankyo branch around September under its policy to provide diverse financial products and services wherever there are demands.
In particular, the bank will expand its overseas branches further this year to 55 branches in 21 nations from 49 branches in 21 countries now to strengthen its overseas financial network.
In 2010, the bank transformed its four branches in China to wholly-owned subsidiaries to build a base for operations in China, considered the largest financial market country potentially.
The bank will quickly set up its operations in the countries with great changes for banking businesses to secure growth engines. The bank will set up a branch in Abu Dhabi, the United Arab Emirates this year as demands for financing by construction firms are expected to rise as they build nuclear power plants, railroads, harbors and other SOC projects.
The bank is also scheduled to open a branch in Chennai, India, with economic relations with India expected to rise rapidly due to the signing of CEPA and elevate its liaison office in Ho Chi Minh City to branch this year, also.
The bank also plans to spur the operations of its wholly-owned subsidiaries in China and Indonesia this year with more branches added in the areas with potential growth opportunities in line with its policy to continuously expand its overseas network.
Korea Exchange Bank(KEB) held a rally recently with the catchphrase of "New Start, KEB Running Together." to actively cope with changes in financial environment and to strengthen the bank's operational capacity by providing better services to its customers in the second half with some 250 high-ranking officials and staff participating at the auditorium at the bank's head office.
President Larry Klane at the rally said we ought to, more than anything else, not forget our responsibility to our customers in order for KEB to continuously grow and pursue sustainable growth.. nw

President Larry Klane of Korea Exchange Bank.

Photo on Courtesy of KEB