By Kang Seung-woo
Staff reporter
When it comes to one of the most widely-recognized commercial catch phrases in business circles, "size does matter" is always high on the list, even within the banking sector.
But such is not the case for Korea Exchange Bank (KEB), as the Korean lender looks to gain recognition as the nation's best-quality bank, not one to rely on only its bulk.
Having a shot at reaching 800 billion won ($659.2 million) in net profit and a return on equity (ROE) of 10 percent this year, KEB, headed by CEO Larry Klane, has pushed itself to provide consecutive and profitable growth as well as strengthen multidimensional competitiveness.
And the local bank seems to be on the right path.
The nation's sixth largest lender reported 318.2 billion won in net earnings during the first three months of 2010.
It is a big rebound from a year earlier, when it tallied a 74.8 billion won net loss, and it also increased by 11.8 billion won, or 3.9 percent, compared with the previous quarter.
Its net interest margin (NIM), a barometer for profitability, also improved to 2.83 percent, up 0.11 percentage points from the fourth quarter of last year.
Along with those increased figures, KEB stood out in terms of liquidity and capital adequacy, as its capital adequacy ratio, or Bank of International Settlements (BIS) ratio, grew 16.02 percent in the January-to-March period this year, which means the bank is financially sound against on-going economic uncertainties.
The number is a key indicator of financial soundness and a bigger ratio represents a better status and 8 percent is regarded as the minimum.
KEB, founded in 1967, has made a reputable name for itself, being awarded by a great number of renowned financial magazines for its high-quality products and services.
Global Finance, a U.S. monthly financial magazine, named it as the Best Trade Finance Bank in Korea for the ninth straight year, Best Foreign Exchange Bank in Korea for the eighth straight year and Best Sub-custodian Bank in Korea in October 2009.
Asiamoney, a Hong Kong-based finance news magazine, tabbed KEB as the Best Domestic Provider of Foreign Exchange (FX) Services and Best Local Currency Cash Management Services (CMS) in September 2009, while titled the Best Trade Finance Bank and Best Foreign Exchange Bank in Korea by FinanceAsia during the same month in 2009.
Euromoney, a monthly periodical, selected KEB for the Excellence Best Bank in Korea recognition in July 2009.
KEB is known for having the largest global network in accordance with its foreign currency-oriented specialty. Currently, it has deployed 48 overseas operations in 21 countries all over the world.
It opened nine branches, including one in Calgary, Canada in 2008, and established a local subsidiary of investment banking (IB) in Hong Kong and a liaison office in Indonesia last year.
In addition, KEB, which founded a local subsidiary in China in April, plans to open one branch and two liaison offices there soon.
The bank has been leading the pack in the local foreign exchange trading market.
It took up 43 percent of the currency trading market, 31 percent in the export market and 29 percent in the import market during the first quarter of 2010 to maintain its billing as the most dominant force intact, which came from introducing competitive commodities coupled with a services and customer-oriented mindset.