Most Commercial Banks Improve BIS Ratio during First Quarter
Most Korean commercial banks improved their Bank for International Settlements (BIS) capital adequacy ratio during the first quarter of this year.
In addition, they have improved other management indexes, such as return on assets (ROA) and return on equity (ROE), both of which are indicators of profitability.
Hanvit Bank's BIS capital adequacy ratio reached 10.5 percent in the first quarter, slightly up from 10.26 percent at the end of last year.
The bank's ROA stood at 0.69 percent from minus 4.36 percent at the end of last year, while its ROE turned from minus 83.59 percent to 14.47 percent.
The state-funded Hanvit Bank, which suffered large deficits of more than 3 trillion won last year, shifted to a surplus worth 113.4 billion won during the first quarter of this year.
``Our good performance in the first quarter is mainly ascribed to our efforts to eliminate many factors that contributed to losses last year,'' said Park Kang-sok, a PR team official. ``We set aside loan loss reserves amounting to 4.9 trillion won last year and disposed of all negotiable securities early this year.''
KorAm saw its BIS ratio climb by 0.1 percentage point to 8.8 percent from the end of last year, as it registered a surplus during the first quarter.
The bank's ROA and ROE, both of which posted minus figures as of the end of last year, were also up at 0.61 percent and 15.13 percent, respectively.
Korea Exchange Bank (KEB) improved its BIS ratio to 9. …