Consolidated Financial Statements

Consolidated Statements of Financial Position

As of December 31, 2013, December 31, 2012 and January 1, 2012 (the date of transition to K-IFRS)

(In millions of Won)	Dec 31, 2013	Dec 31, 2012	Jan 1, 2012
ASSETS
Cash and due from financial institutions (Notes 4, 5 and 7)	2,281,520	1,968,966	2,399,878
Financial assets at fair value through profit or loss ("FVTPL") (Notes 4, 5, 8 and 20)	854,769	259,408	576,591
Hedging derivative assets (Notes 4, 5 and 20)	378,324	873,273	994,233
Loans (Notes 4, 5, 10 and 38)	51,375,674	45,867,144	46,532,367
Financial investments (Notes 4, 5 and 9)	4,385,756	4,152,083	4,028,568
Investments in associates (Note 11)	505,720	499,025	115,486
Tangible assets, net (Note 12)	236,949	228,627	218,913
Intangible assets, net (Note 13)	17,849	15,918	12,943
Deferred tax assets (Note 35)	511,460	396,191	355,201
Other assets (Notes 4, 5, 14 and 38)	855,772	700,818	673,562
	61,403,793	54,961,453	55,907,742
LIABILITIES AND EQUITY
LIABILITIES:
Financial liabilities at FVTPL (Notes 4, 5 and 20)	218,699	267,920	200,800
Hedging derivative liabilities (Notes 4, 5 and 20)	1,799,713	918,477	806,141
Borrowings (Notes 4, 5 and 15)	5,944,643	3,151,898	5,798,794
Debentures (Notes 4, 5 and 16)	42,709,823	40,167,175	39,368,411
Provisions (Note 17)	245,420	224,691	487,552
Retirement benefit obligation, net (Note 18)	27,984	32,864	53,900
Current tax liabilities (Note 35)	100,714	78,369	82,676
Other liabilities (Notes 4, 5, 19 and 38)	1,107,228	1,042,151	1,052,726
	52,154,224	45,883,545	47,851,000
EQUITY:
Equity attributable to the owners of the parent company
Capital stock (Note 21)	7,238,055	7,138,055	6,258,755
Other reserves (Notes 20 and 22)	37,401	7,166	221,967
Retained earnings (Note 23) (Regulatory reserve for bad loans as of December 31, 2013: ￦509,079 million) (Note 24)	1,971,221	1,929,335	1,572,403
Non-controlling interests	9,246,677	9,074,556	8,053,125
	2,892	3,352	3,617
	9,249,569	9,077,908	8,056,742
	61,403,793	54,961,453	55,907,742

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2013 and 2012

(In millions of Won)	Year ended December 31, 2013	Year ended December 31, 2012
OPERATING INCOME
Net interest income (Notes 25 and 38):
Interest income	1,731,845	1,834,859
Interest expenses	(1,340,982)	(1,491,199)
	390,863	343,660
Net commission income (Notes 26 and 38):
Commission income	344,149	294,411
Commission expenses	(3,282)	(5,177)
	340,867	289,234
Dividend income (Note 27):	14,035	18,459
Gain (loss) on financial assets at FVTPL (Note 28)	169,847	(66,874)
Gain (loss) on hedging derivative assets (Notes 20 and 29)	(1,859,253)	(64,549)
Gain (loss) on financial investments (Note 30)	(1,142)	384,987
Gain (loss) on foreign exchange transactions	1,188,449	247,755
Other net operating income (expenses) (Note 31)	659,065	(98,888)
Impairment loss on credit (Note 32 and 38)	(626,799)	(383,044)
General and administrative expenses (Note 33)	(188,566)	(172,460)
Total operating income	87,366	498,280
NON OPERATING INCOME (EXPENSES) (Note 34):
Gain on investments in associates	14,680	14,680
Net other non-operating expenses	(6,363)	(7,040)
	8,317	2,789
INCOME BEFORE INCOME TAX	95,683	501,069
INCOME TAX EXPENSES (Note 35)	(19,126)	(110,235)
NET INCOME	76,557	390,834
(Adjusted income after reserve for bad loans for the year ended December 31, 2013: (-)￦14,845 million) (Note 24)
Net income attributable to the owners of the parent company	76,172	390,550
Net income attributable to the non-controlling interests	385	284
OTHER COMPREHENSIVE INCOME (LOSS)
FOR THE PERIOD (Note 22):
Items not reclassified subsequently to profit or loss:	6,458	(1,631)
Remeasurements of net defined benefit liability	8,520	(2,152)
Items reclassified subsequently to profit or loss:	22,972	(213,640)
Valuation on available-for-sale ("AFS") securities	36,524	(256,147)
Cash flow hedging gains or losses	2,616	(4,235)
Other comprehensive loss on investment in associates	(1,342)	(7,682)
Loss on overseas business translation	(7,491)	(13,782)
Income tax effect	(7,334)	68,206
TOTAL COMPREHENSIVE INCOME	105,988	175,563
Comprehensive income attributable to the owners of the parent company	106,407	175,749
Comprehensive income attributable to the non-controlling interests	(419)	(186)