JB Financial, Q3 Cumulative Net Profit 298.1 Billion KRW... 1.3% Increase YoY
[Asia Economy Reporter Kim Min-young] JB Financial Group announced on the 28th that its cumulative net income attributable to owners of the parent company for the third quarter of this year reached 298.1 billion KRW. This represents a 1.3% increase compared to the same period last year (294.2 billion KRW).
A JB Financial official explained, "Excluding one-time factors such as the additional proactive provision for loan losses related to COVID-19 (15.1 billion KRW in the third quarter), the net income growth rate was 14.3%."
In key management indicators, the group maintained industry-leading profitability metrics with a controlling interest return on equity (ROE) of 11.13% and a group consolidated return on assets (ROA) of 0.84%, the official added.
JB Financial's common equity tier 1 ratio (provisional) recorded 10.20%, up 0.37 percentage points from the same period last year, maintaining a stable double-digit ratio since the early adoption of the Basel III final accord in June. The Bank for International Settlements (BIS) ratio also reached 13.40%, a 0.01 percentage point increase compared to the same period last year.
Asset quality indicators also improved. The delinquency ratio improved by 0.15 percentage points year-on-year to 0.60%, and the non-performing loan ratio also decreased by 0.15 percentage points year-on-year to 0.68%. Additionally, the loan loss cost ratio remained on a downward stabilization trend at 0.41%, even after the additional COVID-19 related provisions.
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However, due to economic slowdown caused by the spread of COVID-19 and a decline in market interest rates, the net interest margin (NIM) slightly decreased. Nevertheless, the group's core affiliates continued to deliver solid performance. As of the cumulative third quarter of this year, Jeonbuk Bank posted a net income of 90.7 billion KRW, Gwangju Bank recorded 137.7 billion KRW in net income, and JB Woori Capital achieved 85.5 billion KRW in net income. The subsidiary Phnom Penh Commercial Bank (PPCBank) in Cambodia also reported a net income of 14.5 billion KRW.
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