iM Financial Group reported Q2 net profit of 141.1 billion won, down approximately 9% from 155 billion won in the same period last year, the company announced on the 27th. The decline was attributed to increased costs including education tax rate changes implemented this year, higher loan loss provisions tied to asset growth, and underperformance at the banking subsidiary. The result missed the consensus forecast of 159.1 billion won by approximately 11%, with analysts pointing to additional provisions related to Jungang Media Group and reduced securities profits amid KOSDAQ market weakness.
iM Financial Group Reports Mixed Operational Metrics
For the first half of the year, iM Financial Group's cumulative net profit reached 295.6 billion won, down approximately 4.4% from 309.3 billion won in the same period last year. An iM Financial official stated that "non-recurring cost increases such as education tax rate changes applied from this year and increased provisions following asset growth led to a slight year-on-year decline in net profit."
Despite the profit decline, total operating profit increased 3.3% to 559.4 billion won in Q2 from 541.3 billion won a year earlier. Total assets including trusts reached 116.9224 trillion won at the end of Q2, up approximately 8.8% year-on-year.
Profitability metrics weakened while capital ratios improved. Return on assets (ROA) and return on equity (ROE) stood at 0.57% and 9.43% respectively at the end of Q2, down 0.07 percentage points and 0.87 percentage points from the previous year. The Common Equity Tier 1 (CET1) ratio rose 0.13 percentage points to 12.27% over the same period.
iM Bank and Subsidiaries Show Varied Performance
iM Bank, the group's commercial banking subsidiary, recorded Q2 net profit of 124.1 billion won, down 4.7% from 131.3 billion won a year earlier. On a cumulative first-half basis, the bank's net profit fell 4.2% to 245.7 billion won.
The bank's corporate loan portfolio grew 5.9% in the first half. The delinquency rate stood at 0.87% and the substandard-or-below loan ratio at 0.94%. The delinquency rate decreased 9 basis points while the substandard-or-below ratio increased 11 basis points.
Among other subsidiaries, iM Capital reported first-half net profit of 39.5 billion won as operating assets grew 13.9%, representing an approximately 33% increase from 29.7 billion won in the previous year. iM Securities posted first-half net profit of 44.9 billion won on a standalone basis as commission income increased with capital market activation. iM Life showed first-half net profit of 18.2 billion won, up 31.9% year-on-year.
iM Financial Board Approves 30 Billion Won Share Buyback
The iM Financial Group board resolved to purchase and cancel an additional 30 billion won in treasury shares. This represents a 50% (10 billion won) increase from the 20 billion won buyback conducted in the second half of last year.
Cheon Byung-kyu, Chief Financial Officer of iM Financial, stated: "Despite solid asset growth, the CET1 ratio improved to a record-high 12.27% in the first half through efficient capital allocation considering risk weights. We will actively utilize tax-free dividend opportunities."
FAQ
What was iM Financial Group's Q2 2026 net profit?
iM Financial Group reported Q2 net profit of 141.1 billion won, down approximately 9% from 155 billion won in the same period last year.
Why did iM Financial's Q2 profit decline?
The company attributed the decline to increased costs including education tax rate changes implemented this year, higher loan loss provisions tied to asset growth, and underperformance at the banking subsidiary. Market analysts also pointed to additional provisions related to Jungang Media Group and reduced securities profits.
