이 기사는 2022년 05월 10일 08:13 thebell 에 표출된 기사입니다.

South Korea’s state-run Industrial Bank of Korea (IBK) is set to see its overseas business turn profitable amid improving business environment.

IBK’s Chinese subsidiary IBK China recorded a net profit of 8.9 billion won ($6.98 million) in the first quarter, according to industry sources, a 78% increased from 5 billion won in the same period last year.

IBK opened its Chinese subsidiary in 2009 to establish the IBK Asia Financial Belt, a project to create a banking network that connects India, Indonesia, Vietnam, the Philippines and Myanmar.

Before the outbreak of the Covid-19 pandemic, IBK China had recorded a net profit of around 20 billion won each year. It had established solid sales networks with local companies as well as Korean companies that operate their businesses there.

IBK China’s net profit sharply decreased to 17.5 billion won in 2018 from 20.9 billion won in the previous year due to the trade war between the U.S. and China, and then rebounded to 24.8 billion won in 2019.

However, with the outbreak of the pandemic in 2020, the company’s net profit plummeted to 9.1 billion won in 2020.

It posted a net profit of 23.2 billion won in 2021 thanks to improved business environment and its active marketing campaigns.

What’s notable is the lender’s achievements in the East Asian region. IBK acquired Bank Agris and Bank Mitraniaga in 2018 and merged the two Indonesian banks and opened Bank IBK Indonesia in September 2019.

The Indonesian bank recorded net losses of 13.2 billion won in 2019 and 39.4 billion won in 2020 due to the pandemic.

Yet, the bank saw its net loss decrease to 13.6 billion won in 2021 driven by active sales activities despite the pandemic. The lender expects its Indonesian subsidiary to turn profitable this year. IBK Indonesia generated a net profit of 2.4 billion won in the first quarter.

IBK’s Myanmar subsidiary is also expected to swing to a profit this year. The subsidiary, which was created in 2021, recorded a net loss of 3 billion won in 2020.

Despite ongoing military coup there, IBK Myanmar narrowed its net loss by 500 million won in the first quarter. IBK Myanmar’s net loss has decreased from 800 million on in the first quarter of 2019 to 600 million won in the fourth quarter. (Reporting by Gyu-hee Kim)