OK저축은행 저신용대출There is no sign of the OK Savings Bank’s soundness ‘red light’ turning off. Although it has entered into austerity management to reduce costs, it seems that the loan granary is still open. The delinquency rate of personal loans is also considered a key factor.
OK Savings Bank continued to grow until 2022 and rose to second place in the savings bank industry.
However, since last year, the entire savings bank industry has deteriorated due to the overlapping effects of high interest rates and real estate PF (project financing). It is assessed that OK Savings Bank was also swept by the ‘cold wind’ without exception.
OK Savings Bank posted a net profit of about 7.3 billion won in the first half of this year. This is a record of about 86% decrease compared to 53.5 billion won in the same period last year. As of the second quarter, it had a net loss of about 7.6 billion won. This is interpreted as a result of the increase in bad debts and the increase in real estate PF reserves. OK Savings Bank’s reserve fund in the first half of this year was 283.9 billion won. This is an increase of about 74% from 163.1 billion won in the same period last year.
Although it avoided a deficit in the first half, there are still many concerns about its soundness. The non-performing loan (NPL) ratio and delinquency rate are skyrocketing.
According to the management disclosure released by OK Savings Bank, the NPL scale in the first half of this year was 1.3776 trillion won, an increase of about 66% compared to the same period last year. The NPL ratio was 11.99%. This is a 5.02%p increase compared to the same period last year.
The delinquency rate is also skyrocketing. OK Savings Bank’s delinquency rate stayed in the 6% range last year, but it jumped to 9.76% in the first half of this year.
Delinquency on real estate PF loans is also increasing. The delinquency amount is 216.3 billion won. Looking at the delinquency rate on real estate PF loans, it was 22.71% in the first half. This is a significant increase from 9.20% at the end of last year. Accordingly, Korea Ratings downgraded OK Savings Bank’s credit rating to ‘BBB’ in the first quarter.
It is interpreted that OK Savings Bank’s fixed-rate and below-rated loans increased further as the Financial Supervisory Service strengthened its criteria for evaluating real estate PF business viability. Accordingly, the reserves that need to be accumulated also increased rapidly.
An official from OK Savings Bank said, “There are some aspects of the indicators that have deteriorated as the real estate PF business viability has been re-evaluated,” and “We are trying to manage the soundness indicators through active sales and purchases.”
OK Savings Bank has entered into ‘austerity management’ to reduce costs due to worsening profitability and soundness.
It is known that it has reorganized its sales branches and reduced its workforce. The number of regular employees has decreased by 84 in one year.
On the other hand, OK Savings Bank has unlocked personal loans and is raising deposit interest rates in preparation for the upcoming year-end savings and deposit maturity.
As of the first half of this year, OK Savings Bank’s household loan ratio was 47.76%, surpassing its corporate loan ratio of 46.84%. Recently, OK Savings Bank has been reported to have significantly increased the proportion of mortgage loans corresponding to personal housing mortgage loans. Unlike the previous quarter when it was only 69.8 billion won, it increased to 181.4 billion won at the end of the second quarter. Accordingly, OK Savings Bank reorganized its organization by promoting the team for loan review to the department level.
Managing delinquency rates due to increased loans is also emerging as a key focus. Individual customers using savings banks are mostly low-credit customers. There is also a possibility that it will be difficult to manage the delinquency rates of mid- and low-credit customers due to the economic downturn.
An official from OK Savings Bank drew the line, saying, “This year, we are focusing the most on managing soundness indicators,” and “It is difficult to see this as an expansion of loans.” He added, “Overall, the size of loans has not increased significantly.”
There is also a view that the entire savings bank industry will expand loans due to expectations of an interest rate cut.
An official from the savings bank industry explained, “As interest rates begin to fall, loan sales are expected to become active,” and “It is difficult to see this as an aggressive expansion.”
