KEB Q1 earnings down 46.4%

Korea Exchange Bank's first-quarter earnings plunged 46.4 percent from a year earlier due to one-off costs and increased loan-loss reserves.

Net income came to 198.6 billion won or US$183.7 million in the January-March period, compared with 370.7 billion won in the same period last year, the lender said.

The weaker bottom line is attributable to increased labor costs as well as increased reserves to cover potential loan losses, it said.

Revenue also fell 23.4 percent on-year to 2.6 trillion won in the first quarter with operating profit nose-diving 49.9 percent to 253.4 billion won, according to KEB.

KEB said its non-performing loans accounted for 1.44 percent of total lending as of the end of March, up from 1.34 percent three months earlier.

KEB's assets totaled 106.2 trillion won at the end of March, up 6.8 percent from three months earlier, with its capital adequacy ratio reaching 14.95 percent, it said.

The lender added that it decided not to pay quarterly dividends to shareholders.

The entire story is availoable at yonhapnews.co.kr.