KB Financial Group Achieves Record-High Quarterly Results with 1.9 Trillion Won Net Profit in Q1

Non-Banking Net Profit Contribution Expands to 43%

Demonstrating a Balanced Business Portfolio

KB Securities Grows Amid 'Money Move' Trend

KB Financial Group recorded a net profit of 1.8924 trillion won in the first quarter, achieving its highest-ever quarterly performance. Despite increased volatility in the financial markets due to rising exchange rates and interest rates, as well as geopolitical uncertainty, major affiliates—including banking, securities, and asset management—saw a significant increase in fee income.

On April 23, KB Financial Group announced through its 'Business Performance' release that net profit for the first quarter of 2026 amounted to 1.8924 trillion won, with a return on equity (ROE) of 13.94%. The company explained that, even under challenging business conditions, affiliates complemented each other's performance, resulting in stable profits.

Despite the pressure of capital outflows to the capital markets, the banking unit maintained a stable profit base by efficiently controlling costs through the optimization of its funding mix, such as expanding core deposits. In contrast, capital market-related affiliates such as securities and asset management drove the group’s non-interest income growth, as fee income surged on the back of increased stock market trading volume.

As a result of these structural changes, the contribution of the non-banking segment to the group’s fee income and net profit expanded to 72% and 43%, respectively. KB Financial Group is thus being credited with once again demonstrating its balanced business portfolio and crisis response capabilities.

Roh Sang-rok, Chief Financial Officer of KB Financial Group, stated, "We turned the 'money move' trend, which could be perceived as a crisis in the traditional banking industry, into an opportunity to expand profitability in non-interest and non-banking segments. The diversification and strengthening of our profit structure are becoming the foundation for sustainable growth."

Key financial indicators also remained stable. As of the end of March 2026, the common equity tier 1 (CET1) ratio and BIS capital adequacy ratio stood at 13.63% and 15.75%, respectively, maintaining industry-leading capital adequacy even amid exchange rate hikes and increased shareholder returns.

Profitability indicators improved as well. The group’s cost-to-income ratio (CIR) was 35.4%, maintaining a stable level thanks to core income growth and cost-efficiency efforts, despite rising costs. The net interest margin (NIM) for the group and the bank was 1.99% and 1.77%, respectively, up from the previous quarter. This reflects the expansion of core deposits, cost reduction efforts for funding, and improved profitability of card assets.

Asset quality indicators also remained sound. The credit cost ratio (CCR) was 0.40%, significantly improving compared to the same period last year, with proactive provisioning and a conservative risk management stance maintained. Return on assets (ROA) and ROE came in at 0.96% and 13.94%, respectively, indicating improvements in both capital efficiency and profitability.

By business segment, net interest income for the first quarter was 3.3348 trillion won, continuing a stable upward trend thanks to reduced funding costs through core deposit expansion and improved net interest margin. Net fee and commission income reached 1.3593 trillion won, a 45.5% increase year-on-year, leading the overall performance improvement. Fee income from capital market affiliates, including securities and asset management, grew particularly strongly.

The financial position remains stable. As of the end of March, the group’s total assets stood at 829.7 trillion won, and total assets including assets under management (AUM) exceeded 1,600 trillion won. The non-performing loan (NPL) ratio, a key asset quality indicator, was maintained at a stable 0.73%, and the coverage ratio, reflecting loss absorption capacity, was at 127%.

By affiliate, the growth of KB Securities was notable. KB Securities posted first quarter net profit of 347.8 billion won, showing significant improvement on the back of increased stock trading volume. KB Kookmin Bank maintained its role as a core profit generator with net profit of 1.101 trillion won. KB Insurance recorded 200.7 billion won, showing a slight decrease, while KB Kookmin Card continued its growth trend with 107.5 billion won. KB Life saw a decline in net profit due to market volatility.

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