KB Financial Group’s core subsidiary Kookmin Bank records 1.1164 trillion won in profits
“Impact of Reserve Reversal Related to Large ELS Losses”,
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, ‘[Seoul Economy] ‘,
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, KB Financial (105560), ‘ Group’s net profit for the second quarter increased by 15% compared to the same period last year due to the reversal of reserves related to significant losses from Hong Kong H-shares Index-linked Securities (ELS). This marks the highest quarterly profit in history.’,
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, ‘KB Financial announced on the 23rd that its net profit for the second quarter of this year was 7.324 trillion won, a 15.5% increase from the same period last year (6.991 trillion won). This growth was attributed to both banks and non-banks showing solid performance, with the non-banking sector contributing nearly 40% to the profits, reflecting one-time gains from ELS loss compensation and reserve reversals.’,
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, ‘A KB Financial Group official explained, “Excluding one-time gains from ELS loss and reserve reversals, the group’s operating net profit for the quarter is around 6 trillion won,” and further stated, “We have demonstrated good performance thanks to the expansion of non-bank performance based on a diversified business portfolio.”‘,
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, ‘KB Financial’s interest income improved. The group’s net interest income for the second quarter increased by 6.5% from the previous year to 3.2062 trillion won. However, the Group’s net interest margin (NIM) for the second quarter declined by 0.03 percentage points to 2.08% due to the impact of the narrowing of yield spreads and the decrease in market interest rates. The net interest income for the first half of the year was 6.3577 trillion won, a 9.0% increase from the same period last year, driven by the growth in loan balances and the increased contribution of non-bank subsidiaries to interest income.’,
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, ‘Non-interest income for the second quarter fell to 1.2428 trillion won, a 3.4% decrease from 1.2873 trillion won in the same period last year. This decline is attributed to a decrease in pure fee income (919.7 billion won) due to reduced investment banking fees and lower credit card spending. However, the first half’s pure fee income increased by 2.4% to 1.9098 trillion won, mainly driven by higher securities custody fees and financial product sales commissions due to increased stock market trading volume.’,
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, ‘Among the subsidiaries, Kookmin Bank, the core subsidiary, saw its net profit for the second quarter increase by 20% to 1.1164 trillion won compared to the previous year’s 927.0 billion won. Non-bank subsidiaries also performed well across the board. KB Securities recorded a 63.6% increase in net profit for the second quarter to 1.781 trillion won, while KB Insurance’s net profit for the second quarter also increased to 2.798 trillion won from the previous year’s 2.714 trillion won. KB Kookmin Card’s net profit for the second quarter increased to 1.166 trillion won from the previous year’s 1.109 trillion won, and KB Life Insurance saw a slight increase in net profit to 989 billion won from the same period last year.’,
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, ‘Along with the financial results announcement, KB Financial Group also announced the resolution to conduct the repurchase and cancellation of 4 trillion won worth of treasury shares, bringing the total repurchase and cancellation amount to 72 billion won this year. The second quarter dividend per share was agreed upon at 791 won, upward from the first quarter, thanks to the effects of the previously announced ‘total amount-based quarterly equal dividend’ and share repurchases. A KB Financial official stated, “Following the industry’s first announcement of the ‘total amount-based quarterly equal dividend’ in the previous quarter, we reaffirmed the board of directors’ and management’s commitment to enhancing shareholder returns” and said that the company will “make efforts to create value in line with government policies.”‘,
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