JB Financial Net Profit 132.3 Billion Won... Record High for Q1

37%↑ YoY
Overall Stability in Management Indicators

[Asia Economy Reporter Kim Hyo-jin] JB Financial Group achieved the highest performance for the first quarter. This is explained as a result of focusing on strengthening management to defend profitability amid the deteriorating business environment due to the impact of COVID-19.

According to the financial sector on the 27th, JB Financial Group recorded a net profit of 132.3 billion KRW in the first quarter of this year. This is a 37.1% increase compared to the same period last year, marking the largest scale for a first quarter ever.

Looking at key management indicators, the return on equity (ROE) attributable to controlling interests was 14.0%, and the group's consolidated return on assets (ROA) was 1.03%, maintaining the highest profitability indicators in the industry for two consecutive years.

The common equity tier 1 capital ratio rose by 0.59 percentage points compared to the same period last year to 10.24%, which is evaluated as maintaining a stable double-digit ratio since the early adoption of the Basel III final framework.

The BIS ratio also reached 13.22%, up 0.27 percentage points from the same period last year.

The asset soundness indicator, the ratio of non-performing loans (NPL) classified as fixed or below, improved by 0.24 percentage points from the same period last year to 0.67%, and the delinquency rate improved by 0.09 percentage points to 0.61% compared to the same period last year.

The loan loss cost ratio (group basis) also improved by 0.10 percentage points from the same period last year to 0.20%, showing a continued downward stabilization of overall asset soundness indicators. The cost-to-income ratio (CIR), an indicator of management efficiency, recorded an all-time low of 44.9%.

JB Financial described this as "the result of proactive risk management policies in preparation for uncertain domestic and international economic environments."

Jeonbuk and Gwangju Banks Also Show Profit Increase

JB Financial also explained that despite the deteriorated business environment caused by low growth and low interest rates due to the spread of COVID-19, group affiliates continued a steady profit growth trend based on profitability-centered internal management.

Jeonbuk Bank posted a net profit of 38.1 billion KRW, up 28.8% compared to the same period last year, and Gwangju Bank achieved a net profit of 52.1 billion KRW, up 11.6% compared to the same period last year.

JB Asset Management recorded a net profit of 1.4 billion KRW. JB Woori Capital recorded a net profit of 45.2 billion KRW, up 75.3% compared to the same period last year, making the largest contribution to the group's profit growth.

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