IBK Q3 net drops 34 pct on increased reserves

SEOUL, Nov. 7 (Yonhap) -- State-owned Industrial Bank of Korea said Friday its third-quarter earnings sank 34 percent from a year earlier mainly due to increased reserves against bad loans.

Its net profit reached 144 billion won (US$109 million) in the July-September
period, compared with 218 billion won a year earlier, the lender said in a
statement.
Operating income dropped 30 percent to 201 billion won over the cited period, and
revenue more than doubled to 5.89 trillion won, it said.
The bank's cumulated profit reached 752 billion won in the first nine months of
the year, also down 29 percent from a year earlier.
Local banks have set aside more provisions against bad loans. Industrial Bank set
aside a total of 357 billion won in provisions against bad loans in the third
quarter, compared with a meager 86 billion won the previous quarter.
The non-performing loan ratio grew 0.46 percentage point to 1.22 percent from the
second quarter as the delinquency rate of loans increased.
Its capital adequacy ratio stood at 10.15 percent at the end of September,
compared with 11.11 percent at the end of last year.
Its assets increased 10.2 percent to 92.9 trillion won in the first nine months
of the year, it said.
sam@yna.co.kr
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