Regional Financial Firms' First-Half Performance Slows... Competition Concerns Amid BNK-JB Merger Collapse

Regional financial groups BNK Financial, JB Financial, and iM Financial Group reported declining first-half profits. While JB Financial achieved its highest quarterly profit, BNK Financial and iM Financial saw declines, resulting in a combined 5.4% year-over-year drop in total earnings. The Big Four banks (KB, Shinhan, Hanari, and Woori Financial Group) generated 11.3392 trillion won in profits, 10.4 times higher than the regional firms' 1.931 trillion won. JB Financial's profit rose 4.1%, while BNK and iM declined by 13.5% and 4.4%, respectively. BNK's decline was attributed to a 440 billion won accounting loss from a core office fund acquisition, though adjusted for one-time factors, its profit increased 8.2% year-over-year. iM Financial's earnings fell 4.4%.