IBK Industrial Bank of Korea said on April 24 it posted consolidated first-quarter net profit of 7.534 trillion won and separate net profit of 6.663 trillion won.

Consolidated net profit fell 7.5 percent from a year earlier, while separate net profit declined 12.4 percent. It was seen as reflecting a base effect from last year’s record first-quarter results and the impact of Iran-driven exchange rate variables.

Despite larger foreign exchange losses from a sharp rise in the won-dollar exchange rate at the end of March, net interest income rebounded as funding costs fell. Gains from the valuation of securities also rose as the bank expanded investment in innovative companies, partly confirming progress in diversifying earnings.

Outstanding loans to small and medium-sized enterprises rose 2.4 trillion won from the end of last year to 264.2 trillion won, while its share of the SME lending market held at about 24.4 percent.

Asset quality indicators showed a stable trend. The ratio of substandard or below loans was unchanged from the end of last year at 1.28 percent, and the credit cost ratio fell 4 basis points from the end of last year to 0.43 percent.