[이데일리 전선형 기자] DGB Financial Group’s net profit declined. Banks, which are major affiliates, performed well by increasing interest income, but DGB Life and Securities held a hindrance.
DGB Financial Group announced on the 28th that its net profit for the first half of 2022 was 285.5 billion won, down 7.2% from the same period of the previous year. The second quarter also recorded 123.3 billion won, down 20.6% from the same period last year.
Interest income was KRW 869.2 billion, up 13% from the previous year. Net interest margin also increased to 2.1% from the same period last year (1.93%). On the other hand, non-interest income fell 37.7% to 166 billion won.
DGB Financial said, “This decrease in net profit is because 29 billion won was retroactively added to the same period last year due to the change in DGB Life’s accounting policy related to guarantee reserve accumulation.” explained.
There were differences between subsidiaries. DGB Daegu Bank, a major affiliate, recorded a net profit of 215.2 billion won, up 11.7% from the same period of the previous year, despite the preemptive additional provision of about 39.5 billion won in the first half of this year in preparation for the uncertain future economy.
It is analyzed that this is because interest income increased significantly as market interest rates rose along with solid growth, and effective cost control was implemented while SG&A expenses decreased.
DGB Capital, a non-banking affiliate, also posted a net profit of 45.2 billion won, an increase of 18.3% compared to the same period of the previous year, on the back of solid growth in operating assets.
On the other hand, Hi Investment & Securities recorded a 25.7% decrease compared to the same period last year. As financial market volatility increased, product management-related losses occurred, and brokerage-related commission income fell sharply as the stock market slumped. DGB Life Insurance’s net profit also fell 66.2% from the previous year to 13.3 billion won.
An official from DGB Financial Group said, “As risk management is more important than ever due to internal and external circumstances, in the second half of the year, we will focus on asset quality management and prepare various support measures for the financially vulnerable.”