Busan Bank recorded Net Income of 183.9 bn in FY 2006

Busan Bank(CEO Lee, Jang Ho) released its year 2006 earnings results of 183.9bn net income and declared dividend of 420won per share after the BOD meeting in January 25th, 2007.

The BOD approved the net income of 183.9bn won, dividend of 420 won per share, BIS capital ratio 11.06%(estimated), substandard and below loan ratio of 0.83% and delinquency ratio of 0.75%.

Stable growth in both interest income and non-interest income contributed to the increase in net income compared to the last year, in spite of the additional provision expenses due to the FSS' change of standards and extra costs for the Early Retirement Program. Operating income increased by 20% yoy, and the net income increased by 5 bn won, 2.8% yoy, which is the highest since the bank's foundation.

Park, Tae Min, CFO of the bank said, "In 2007, we will more focus on securing margins accompanied by an adequate level of asset growth. It is important that the huge asset growth we made last year be led to the increase in profit, and we will put special effort in diversifying non-interest income source as well. We will continue to maintain our identity as the regional bank in Busan and Gyeongnam area, prioritizing our shareholders' value."

Year 2006 Major Financial Indicators

(unit : billion krw, %)

* Estimated