www.dgbfg.co.kr

3Q 2023 Financial Results

DGB Financial Group

Disclaimer

ㆍThis preliminary financial results is based on the Korean International Financial Reporting Standards(K-IFRS) and contained herein has not been reviewed and audited by independent auditors. Therefore, the results is subject to change without further notice.

ㆍFrom 2023, accounting standards related to insurance contracts are changed from IFRS4 to IFRS17. Revised accounting policy has been reflected in this IR material since 1Q23. The financial results prior to 1Q23 have not been retroactively amended. Please refer to page 6 for the effect of IFRS17 adoption.

ㆍDGB Life Insurance's financial statements have been restated due to new accounting policy related to guarantee reserve. Accordingly, group financial results have been retrospectively restated and reflected in this IR Book.

Refer to the changes in net incomebelow.

Unit : bn. Won, Net Income

2018

2019

2020

1H21

3Q21

Before restatement (before new accounting policy)

381.1

327.4

-

Discount rate(as of the end of 2020) reflected

380.4

307.3

332.3

278.8

417.5

Discount rate(as of the end of 2021) reflected

361.4

281.0

342.2

307.8

452.6

ㆍSome information contained herein has not reflected accounting policy changes for effective historical analysis.

ㆍSome of the totals may not sum due to rounding.

ㆍThis material, Factbook, and financial statement are available at our website, www.dgbfg.co.kr.

ㆍFor more information, refer to our business report, Factbook, annual report, and financial statement.

ㆍDGB Financial Group undertakes no obligation regarding any investment judgment based on such statements or figures.

Contents

DGB Financial Group

DGB Daegu Bank

Non-Bank

Business Portfolio

Financial Results

Key Indicators

Capital Adequacy / Dividend

Group Strategies for Future Growth

Condensed BS

Condensed IS

Market Share & Regional Economy

Financial Results

Loans & Deposits(Funding Structure)

Asset Quality & Delinquency

Hi Investment & Securities

DGB Life

DGB Capital

Hi Asset Management

DGB Financial Group

Group Structure

Page 05

Financial Results

Page 06

Key Indicators

Page 11

Capital Adequacy / Dividend

Page 12

Group Strategies for Future Growth

Page 14

Condensed Balance Sheet

Page 15

Condensed Income Statement

Page 16

∙ Assets

100.0 tr.

100%

∙ Equity

6.6 tr.

  • Employees 4,813

(Overseas local employees excluded)

  • Net Income 424.7 bn.

∙ ROE

9.84%

87.9%

∙ ROA

0.62%

100%

100%

∙ EST. 2011. 5. 17

100%

  • Total Assets 4.3 tr.

∙ Employees

102

100%

100%

100%

100%

77.7%

  • This group structure is as of the end of 3Q23
  • Bank trust account included in group & bank assets
  • Net Income is based on consolidated basis
  • Assets & net income are marked on KRW (Korean Won)
  • Ownership described as percentage mark above
  • ROE is based on shareholders' equity, ROE & ROA is annualized.

DGB Financial Group Business Portfolio

EST. : Established ACQ. : Acquired

∙ Assets

77,361.5 bn.

∙ Branches

201

∙ ROE

9.85%

EST.

∙ Equity

5,088.5 bn.

∙ Net Income 347.9 bn.

∙ ROA

0.63%

1967. 10

∙ Assets

12,458.3 bn.

∙ Branches

22

∙ ROE

2.42%

ACQ.

∙ Equity

1,390.5 bn.

∙ Net Income

29.8 bn.

∙ ROA

0.23%

2018. 10

∙ Assets

5,587.3 bn.

∙ ROE

14.08%

ACQ.

∙ Equity

571.3 bn.

∙ Net Income 55.0 bn.

∙ ROA

1.30%

2015. 1

∙ Assets

4,591.2 bn.

∙ Branches

2

∙ ROE

14.45%

ACQ.

∙ Equity

653.8 bn.

∙ Net Income

63.6 bn.

∙ ROA

1.92%

2012. 1

ACQ.

∙ Assets

78.6 bn.

∙ Equity

74.5 bn.

∙ Net Income 4.6 bn.

2016. 10

ACQ.

∙ Assets

37.4 bn.

∙ Equity

15.1 bn.

∙ Net Income 3.4 bn.

2013. 3

EST.

∙ Assets

12.7 bn.

∙ Equity

11.6 bn.

∙ Net Income 0.3 bn.

2012. 4

EST.

∙ Assets

5.7 bn.

∙ Equity

5.4 bn.

∙ Net Income 0.2 bn.

2000. 7

ACQ.

∙ Assets

21.2 bn.

∙ Equity

20.9 bn.

∙ Net Income 1.3 bn.

2021. 4

ACQ.

∙ Assets

5.6 bn.

∙ Equity

5.4 bn.

∙ Net Income -1.3bn.

2021. 8

[Group] Financial Results IFRS17 Adoption

  • Group Condensed Income Statement

(unit : bn. Won)

3Q22

3Q22

Chg.

3Q23

(A: IFRS 4)

(B: IFRS 17)

(B-A)

(IFRS 17)

Total Income

1,513.6

1,517.6

+4.0

1,664.8

Int. Income

1,339.8

1,212.1

-127.7

1,218.1

Non-Int. Income

173.8

305.5

+131.7

446.7

SG&A (-)

790.9

764.0

-26.9

726.3

Provisions (-)

140.2

140.1

-0.1

358.9

Operating Income

582.5

613.5

+31.0

579.6

Non-Oper. Income

-2.7

-5.1

-2.4

-6.2

Net Income

426.0

447.3

+21.3

448.9

Net Income in

394.3

415.6

+21.3

424.7

Controlling Interest

■ CSM Movement

Unit : bn. Won

+14.5

794.2

+224.5

(43.7)

(76.9)

675.8

4Q22

New CSM

Interest

CSM

Others

3Q23

CSM

Expenses

Amortization

CSM

(CSM)

  • DGB Life Condensed Income Statement

(unit : bn. Won)

3Q22

3Q22

Chg.

3Q23

(A: IFRS 4)

(B: IFRS 17)

(B-A)

(IFRS 17)

Total Operating Income

-85.1

30.6

115.8

72.3

Insurance Income

-227.3

41.9

269.2

59.5

Insurance Oper. Revenues

482.1

191.2

-290.9

215.8

Insurance Oper. Expenses

709.4

149.4

-560.1

156.3

Investment Income

142.2

-11.3

-153.4

12.8

Investment Oper. Revenues

307.3

553.8

246.5

416.3

Investment Oper. Expenses

165.1

565.0

399.9

403.5

Insurance Finance Income

-

-54.0

New

-169.0

Increase in Policy Reserve

-81.0

-

Deleted

-

Oper. Income

-4.1

30.6

34.7

72.3

Non-Oper. Income

13.1

-5.5

-18.6

-6.0

Net Income

6.9

18.3

11.4

55.0

  • Changes in P/L following the introduction of IFRS17 (3Q22)
  • Insurance Revenues : Decreased
  • Changes in revenues recognition standard (Cash Basis Accrual Basis)
  • Insurance Expenses : Decreased
  • 'Non-accidentpayment' is deducted from liability.
  • Investment Income : Decreased
  • Life insurance loan deduct from insurance liability.
  • Removed 'Separate Account Commission Received' from investment income .
  • 'Overlay Approach' is not applied to FV-PL valuation gains and losses.
  • Non-Oper.Income : Decreased
  • 'Cancellation return after lapsed' shifted to Oper. Income.

[Group] Financial Results Highlights

■ 3Q23(cumulative) Net Income 424.7 bn. Won (YoY + 7.7%)

■ Bank Quarterly NIM rebound (QoQ +2bp)

2.17

2.24

-17bp2.07

2.05

2.03

2.03

2.03

-6bp2.01 +2bp

* Income, ROE, CIR, and CCR below are cumulative basis

Annual

Quarter

3Q22

3Q23

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

■ Solid Loan growth continued

* Unit : trillion won

YTD +7.1%

QoQ +4.2%

House

Others

House others

-hold

-hold

Corp.

Corp.

4Q223Q23 2Q233Q23

■ Expense efficiencies go on CIR improved

56.9

55.1

50.9

52.3

¹

²

43.6

CIR (cumulative,%)

3Q19

3Q20

3Q21

3Q22

3Q23

²

[Group] Financial Results Net Income

■ Group Net Income[attributable to controlling interest]

unit : bn. won

503.1

+7.7%

361.4

401.6

394.3

424.7

342.2

302.2

294.1

287.7

281.0

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

3Q22

3Q23

(YTD)

(YTD)

■ Net Income[attributable to controlling interest] Breakdown

unit : bn. won

¹Net income attributable to Non-controlling Interest

  • Quarter Net Income
    108.8 +5.6% 114.9

3Q22 3Q23

[Unusual Items (before tax, KRW)]

(Bank) Special Provisioning -27.2bn.

(Bank) NPL Disposal Gains +11.5 bn. (Hi Inv.) Special Provisioning(PF) -8.7bn.

(Hi Inv.) Investment product sales related losses -10.3bn.

■ Income Contribution[Net income basis]

Bank

Non-Bank

Interest

SG&A

68.9%

31.1%

Income

Non-Interest

Cost

347.9 bn.

156.9 bn.

229.0

income

64.6

(YoY 5.6%↑)

(YoY 5.9% ↑)

272.9

424.7

394.3

Provisions

Non-

Others¹

Tax

168.0

Securities

Others

29.4

218.7

Operating

7.4

5.9%

1.7%

Income

non-controlling

29.8 bn.

8.5 bn.

3.5

Interest Income

interest

Capital (YoY 59.6%↓)

YoY 4.1 bn.↑

121.7

Share(12.1%)

12.6%

Income↓

63.6 bn.

(YoY 0.8% ↑)

Life

10.9%

55.0 bn

(YoY 697.1%↑)

3Q22

3Q23

(YTD)

(YTD)

[Group] Financial Results Net Interest Income

■ [Bank] Loan Growth (Loan in Won)

2.7

1.6

1.7

2.8

4.2

■ Loan Portfolio

Total Growth

0.0

(%_QoQ)

7.3

11.1

12.1

3.1

3.7

4.5

4.6

Corporate

Household

Others

1.9

8.5

Household

61.8%

36.2%

2.0%

6.5

(%_QoQ)

Total Growth 4.5

5.4

54.1 trillion (100%)

2.8

Corporate 2.6

(%_YoY)

1.8

2.5

0.6

0.7

-1.3

(%_QoQ)

▪ As of the end of September 2023

Household

(%_YoY)

Corporate 2.8

(%_YoY) 5.2

8.1

5.8

4.8

1.7

13.7 29.5

9.7 4.6

8.2

9.6

7.7

4.4

Household

(EB, trillion)

Corporate

(EB, trillion)

47.6

15.8

32.1

48.9

16.4

32.3

49.7

17.1

32.5

50.5

17.4

32.1

52.0

18.3

32.6

54.1

19.6

33.4

95.5

98.0

95.3

95.8

94.3

93.8

Loan to Deposit Ratio(%)

2016 2017 2018 2019 2020 2021 2022

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

〮 EB : Ending Balance

■ NIM(%)

▪ Lending Rate Structure

Fixed

Floating

20.9%

79.1%

▪ Repricing Cycle

Under 3M

6M

12M

Fixed(COFIX)

Others

35.3%

24.1%

18.3%

14.4%

7.9%

  • [Group] Net Interest Income(bn. won)

14.3%↑1,830.3

1,601.3

2.14

2.21

2.16

1.88

1.96

2.07

2.10

2.03

Group

Bank

2.36

2.27

2.14

2.19

2.13

2.15

2.24

2.17

2.03

2.07

2.01

2.03

1,379.4 1,411.0 1,428.7

12.1%↑

1.79

1.85

1,339.8

1,218.1

Annual

2019 2020 2021 2022 3Q23

Quarter

2Q22 3Q22 4Q22 1Q23 2Q23 3Q23

2018 2019 2020 2021 2022

3Q22 3Q23 (YTD) (YTD)

[Group] Financial Results Costs & Asset Quality

■ SG&A(bn. won) & CIR(%, Cumulative)

■ Provisions(bn. won) & CCR(%, Cumulative)

(Credit Cost Ratio)

62.3 63.8

1700.0

56.7

56.1

53.5

52.3

0.47

0.52

0.59

0.37

0.30

43.6

1500.0

57.8

55.4

55.6

57.4

0.44

0.49

0.39

1300.0

51.4

46.7

420.0

0.35

0.25

41.6

1,170.2

370.0

349.2

1,102.0

1100.0

1,022.3

950.2

790.9 8.2%↓

320.0

276.4

900.0

5.8%↓

109.9%↑

726.3

270.0

817.0

220.0

187.0

168.6

166.4

700.0

0.5%↓

170.0

1.9%↑

61.8%↑

120.0

500.0

659.6

625.3

663.9

747.0

743.2

487.5

496.8

70.0

163.3

142.0

222.1

125.3

202.7

300.0

20.0

3500

3000

2500

2000

1500

1000

500

0

0.78

0.32

0.59

0.33

358.9

156.0%↑

246.5

140. 96.1%↑

125.7

2018

2019

2020

2021

2022

3Q22

3Q23

2018

2019

2020

2021

2022

3Q22

3Q23

(YTD)

(YTD)

(YTD)

(YTD)

■ NPL Ratio(%) & Delinquency Ratio(%)

Group

Bank

■ NPL Coverage Ratio(%)

Group

Bank

NPL ratio

0.95

1.03

0.97

1.00

228.0

232.5

242.2

245.6

0.56

0.56

170.3

163.4

177.6

166.0

0.53

0.52

(134.8)

(140.7)

(154.7)

(158.8)

(119.8)

(128.9)

(119.9)

0.60

0.60

0.58

0.56

(117.2)

0.48

0.49

0.44

0.42

Delinquency ratio

0.96

0.90

0.96

256.7

257.3

280.2

288.7

242.6

247.7

230.4

228.0

0.42

0.41

0.61

(171.9)

(167.5)

0.34

0.38

0.54

(135.3)

(141.9)

(165.2)

(144.7)

(161.3)

0.54

0.50

(136.9)

0.43

0.22

0.30

0.24

0.26

▪ ( ) Under the revised Banking Supervision Regulations of Dec. 2016

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

4Q21

1Q22

2Q22

3Q22

4Q22

1Q23

2Q23

3Q23

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Disclaimer

DGB Financial Group published this content on 27 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 October 2023 08:04:05 UTC.