Banks' Q1 capital ratio improves on profit gains
SEOUL, June 6 (Yonhap) -- Banks in South Korea saw their financial health improve slightly in the first quarter of this year, thanks to modest gains in their profits, data from the financial regulator showed Wednesday.
The average capital adequacy ratio of 19 commercial and state-run banks stood at 15.34 percent as of the end of March, up 0.1 percentage point from the previous quarter, according to the Financial Supervisory Service (FSS).
The regulator attributed the rise in the capital adequacy ratio to improved profits.
A key barometer of financial soundness, the ratio measures the proportion of a bank's capital to its risk-weighted credit. The Switzerland-based Bank for International Settlements (BIS), an international organization of central banks, requires lenders to maintain a ratio of 8 percent or higher.
Citibank Korea Inc. posted the highest capital ratio of 18.94 percent.
The capital adequacy ratio of two Internet-only banks -- K-Bank and Kakao Bank -- stood at 13.48 percent and 10.96 percent, respectively.
The Internet-only banks fell last year as they posted net losses, but the ratio is likely to rise this year as they have recently launched rights offerings to bolster their finances, the FSS said.
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