KB Financial Group Reports Q1 Net Profit of 1.4531 Trillion KRW, Up 14.4% Year-on-Year

[Asia Economy Reporter Song Seung-seop] KB Financial Group recorded a net profit of 1.4531 trillion KRW in the first quarter, driven by loan growth and an expansion in net interest margin.

According to KB Financial Group's disclosure on the 22nd, net profit increased by 14.4% compared to the same period last year (1.27 trillion KRW). This was due to increased interest income despite somewhat weak performance in securities and derivatives. Efforts to manage general administrative expenses and asset quality also had an impact.

A KB Financial Group official explained, "Excluding one-time gains such as the reversal of loan loss provisions (approximately 59 billion KRW after tax) and the bank's corporate tax refund (about 69 billion KRW) that occurred this quarter, net profit stands at around 1.3249 trillion KRW," adding, "The steady profit growth trend continues on a recurring basis."

Net interest income rose 18.6% to 2.648 trillion KRW. This was due to solid loan growth at the bank and an improvement in the net interest margin (NIM). The representative profitability indicator NIM was 1.91%, up 0.06 percentage points due to rising interest rates.

By affiliate, KB Kookmin Bank posted a net profit of 977.3 billion KRW, up 41.9%. KB Insurance also showed significant growth, increasing from 68.8 billion KRW to 143.1 billion KRW. On the other hand, KB Securities saw a sharp decline of 48.3%, dropping from 221.1 billion KRW due to the overall stock market downturn. KB Kookmin Card also shrank by 15.9%, from 141.5 billion KRW to 118.9 billion KRW.

The cost efficiency indicator CIR recorded 45.4%, showing a downward stabilization trend as a result of workforce restructuring and cost reduction efforts.

The loan loss provision ratio was 0.15%, influenced by the one-time reversal of loan loss provisions (approximately 82 billion KRW).

Meanwhile, KB Financial Group Holding resolved through its board of directors to regularize quarterly dividends and declared a first-quarter dividend of 500 KRW per common share. The CFO of KB Financial Group explained, "This reflects the will of the board and management to develop an advanced shareholder return system that better meets shareholders' needs."

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