Jeju Bank Issues KRW 50 Billion Unsecured Bonds, Maintains AA+ Rating

Jeju Bank issued KRW 50 billion in unsecured floating-rate bonds (1-year maturity, CD 1M+0.25%, initial 2.95%) for operating funds. Credit rating AA+ (stable).
As of end-2025: BIS total capital ratio 16.24%, NPL ratio 1.57%, delinquency rate 1.60%, NIM 2.10%, ROA 0.18%, ROE 2.20%. Net income KRW 139.3 billion (increase YoY).
Asset quality deterioration (NPL ratio up 0.25%p YoY, loan loss reserve ratio fell to 85.55%). Risks of declining profitability and rising funding costs.
Business risks: concentration in Jeju region, intensifying digital competition, tighter financial regulations. However, solid support from Shinhan Financial Group (64.01% stake) and ample liquidity (LCR 120.9%) provide stability.
Dividend maintained at KRW 100 per share for the past 3 years. No separate share buyback or cancellation plan.

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