JB Financial H1 Earnings 188.2 Billion KRW... 7.8% Decrease YoY

Kim Ki-hong, Chairman of JB Financial Group

[Asia Economy Reporter Kim Min-young] JB Financial Group announced on the 28th that its net income attributable to owners of the parent company for the first half of this year reached 188.2 billion KRW. This represents a 7.8% decrease compared to the same period last year.

A JB Financial official explained, "If one-time factors such as the proactive additional provision for loan losses due to the impact of the novel coronavirus disease (COVID-19) are excluded, net income increased by 4.7% compared to last year."

However, profitability is deteriorating. The return on equity (ROE) attributable to controlling interests fell by 1.7 percentage points to 10.7% compared to the previous year. The group's consolidated return on assets (ROA) also declined by 0.11 percentage points to 0.81%.

Asset quality indicators were favorable. The delinquency rate, an asset soundness indicator, decreased by 0.12 percentage points year-on-year to 0.64%, and the ratio of non-performing loans including substandard loans improved by 0.09 percentage points to 0.72%. The loan loss expense ratio remained stable at 0.41%.

The Bank for International Settlements (BIS) common equity tier 1 capital ratio rose by 0.66 percentage points year-on-year to 10.28%, due to the early adoption of the Basel III final framework. It surpassed 10% just one year after achieving the Financial Supervisory Service's recommended level of 9.5% in the first half of last year.

Core affiliates showed mixed performance. Jeonbuk Bank (consolidated basis) recorded a net income of 63.6 billion KRW in the first half, down 15.3% from 75.1 billion KRW in the same period last year. Gwangju Bank also posted net income of 85.8 billion KRW, a 6.2% decrease from 91.5 billion KRW in the previous year. JB Woori Capital, a specialized credit finance company, achieved net income growth from 44.3 billion KRW to 54.8 billion KRW during the same period. The group's subsidiary, Phnom Penh Commercial Bank (PPCBank) in Cambodia, recorded net income of 10.3 billion KRW.

A JB Financial official stated, "Despite the economic slowdown caused by the spread of COVID-19 and the unprecedented low interest rate environment leading to a decline in net interest margin (NIM), the group affiliates continued to deliver solid performance."

This content was produced with the assistance of AI translation services.