BNK Financial Group's cumulative net profit for the third quarter this year fell 19.2 percent from the same period a year earlier. It was affected by a base effect from a one-off gain from last year's office sale and a drop in non-interest income. Net profit in the non-bank segment rose.

BNK Financial Holdings said on Oct. 26 that cumulative consolidated net profit for the group in the January to September period was 622.3 billion won, down 147.7 billion won, or 19.2 percent, from a year earlier.

BNK Financial explained that cumulative operating profit rose this year, but net profit fell due to a base effect from a 100.9 billion won one-off gain from the sale of the BNK Gangnam Core Office last year, as well as a drop in non-interest income.

Net profit in the banking segment was 557.3 billion won, down 113.1 billion won from the same period a year earlier. Busan Bank's net profit fell by 99.1 billion won and Kyongnam Bank's by 14.0 billion won.

The non-bank segment improved. Cumulative net profit at non-bank affiliates was 213.7 billion won, up 47.7 billion won from a year earlier.

Asset quality indicators were mixed. The group's ratio of substandard or lower loans was 1.45 percent, improving by 0.01 percentage point from the second quarter this year, but the delinquency ratio rose by 0.06 percentage point over the same period to 1.40 percent. BNK Financial said continued management is needed as the asset quality indicators are somewhat lower than those of peers.

The group's common equity Tier 1 ratio rose 0.04 percentage point from the second quarter to 12.18 percent, helped by management of risk-weighted assets and an increase in retained earnings.

BNK Financial also held a board meeting on the day and decided on a quarterly cash dividend of 150 won per share and a 60.0 billion won share buyback and cancellation in the second half.

Park Sung-wook (박성욱), a vice president of BNK Financial Group, said net profit fell from a year earlier due to the impact of last year's one-off gain and a decline in non-interest income. "We will do our best to push ahead with profit improvement tasks under Value-Up 2.0 and raise work efficiency and productivity so we can repay customer trust," he said.