KB Geumyung 3Q Net Profit 1.2713 Trillion Won... 2.1% Decrease YoY

[Asia Economy Reporter Buaeri] KB Financial Group announced on the 25th that its net profit for the third quarter of this year reached 1.2713 trillion KRW. This represents a 2.1% decrease compared to the previous year and a 2.5% decrease compared to the previous quarter.

KB Financial explained, "The base effect of approximately 123 billion KRW from the one-time gain in the second quarter due to the sale of property by the non-life insurance business," adding, "Excluding this, the performance increased by 7.7% compared to the previous quarter."

The cumulative net profit for the third quarter was 4.0279 trillion KRW, an increase of 6.8% (255.5 billion KRW) compared to the same period last year. KB Financial added that net interest income increased due to loan growth and expansion of net interest margin (NIM), reflecting the results of thorough cost management.

Net interest income for the third quarter was 2.8974 trillion KRW, up 3.7% from the previous quarter. Interest income from KB Kookmin Bank led the solid performance, and contributions from non-bank affiliates such as card, capital, and non-life insurance steadily expanded.

However, net fee income for the third quarter was 813.8 billion KRW, down 7% from the previous quarter. This was due to a reduction in securities business commission income caused by domestic and international stock market downturns.

Other operating income and expenses for the third quarter recorded a loss of 64.2 billion KRW, as insurance-related profits shrank due to seasonal factors such as heavy rain and typhoons and increased loss ratios caused by large-scale fires.

As an asset soundness indicator, the group's credit cost ratio on a cumulative basis for the third quarter was 0.24%. As of the end of September, the group's non-performing loan (NPL) ratio was 0.32%, which KB Financial explained is being managed stably despite the risk expansion phase due to rising interest rates and economic recession. The NPL coverage ratio was 219.7%.

Capital adequacy indicators based on the Bank for International Settlements (BIS) showed a capital adequacy ratio and common equity tier 1 ratio of 15.42% and 12.60%, respectively.

As of the third quarter, KB Financial's total assets amounted to 726.9 trillion KRW, and the group's total assets including assets under management (AUM) reached 1,186 trillion KRW.

Looking at the performance of major affiliates, KB Kookmin Bank's net profit for the third quarter was 824.2 billion KRW, a 10% increase from the previous quarter. The bank explained that this was due to steady growth in interest income and the disappearance of additional provisions related to future economic outlook made in the previous quarter. The cumulative net profit for the third quarter was 2.5506 trillion KRW, up 15.9% year-on-year.

KB Kookmin Card's net profit for the third quarter was 106.6 billion KRW, down 20.2 billion KRW from the previous quarter. This was the result of increased payment fees due to strengthened marketing and increased funding cost burden due to rising interest rates. The cumulative net profit for the third quarter was 352.3 billion KRW, down compared to the same period last year.

A KB Financial official said, "Despite the difficult business environment with increased financial market volatility, the group once again demonstrated its solid fundamentals and earning power."

Meanwhile, on the same day, KB Financial Group's board of directors resolved a quarterly dividend of 500 KRW per share. This brings the cumulative quarterly dividend for this year to 1,500 KRW per share. KB Financial introduced and regularized quarterly dividends for the first time in history this year. In February and July, the company also canceled treasury shares worth a total of 300 billion KRW this year.

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