IBK developed and implemented the IBK Total Management System in 2010 to reinforce the Bank’s ability to respond preemptively to changes in the rapidly evolving market environment, following the setup of the IBK Comprehensive Management System that it created for its IB operations. The new system reflects the complex nature of IB deal structures, and improves execution efficiency by standardizing processes and minimizing operational risk. As a result, it has paved the way for IBK’s IB business to leap to the next level of performance. Its experience in successfully overcoming the challenges of the global financial crisis and establishing systems to preemptively meet the needs of the IB market will allow it to develop into a bank that serves as a valuable platform to support the growth of SMEs.
Despite the difficulties faced by the IB business in 2010, the Bank focused on improving asset soundness and produced tangible results. It recovered real estate PF loans worth KRW 152.7 billion that had been at risk of default following the abrupt slowdown in the domestic construction sector. It worked to quickly establish workout programs for feasible projects that had solid chances for recovery, thereby recording significant reductions in the delinquency ratio. Moreover, it actively improved its asset portfolios by selling off investment assets classified as losses.
IBK expanded its IB business platform by steadily investing in high-yield assets and liquidating nonperforming assets. It created a new policy document titled ‘Guidelines for Dealing with Syndicated Loans’ to create a basis for expanded investment in highperforming MEs, leading to KRW 90 billion in new ME investment during 2010. Investment in power generation businesses was also expanded to preemptively respond to Korea’s increasing energy needs. To actively support the government’s initiatives to foster new green growth engines for the economy and create a foundation for the Bank’s sustainable growth, the Bank directed investment funds to companies in environmental, alternative energy and bio-fuel businesses.
The IB market is expected to remain volatile in 2011, with the current low growth momentum lasting throughout the extended global economic slowdown. As such, IBK will focus on strengthening its core competencies and pursuing substantial growth, while actively implementing changes to integrate into the financial paradigm of the ‘New Normal’ era.