KB Financial Group Reports Record Q1 Net Profit of 1.4976 Trillion Won

Published 27 Apr.2023 15:41(KST)

KB Financial Group announced on the 27th that its net profit for the first quarter reached 1.4976 trillion KRW. This represents a 2.5% increase compared to the previous year and marks the highest quarterly record ever.

A KB Financial official explained, "Despite increased financial market uncertainties such as the bankruptcy of the U.S. Silicon Valley Bank (SVB), earnings from non-bank sectors including securities and insurance affiliates improved, and the net interest margin (NIM) improved due to loan growth and rising interest rates last year." The proportion of non-bank sectors in the group's net profit expanded to about 41%.

The credit loss provisions accumulated by KB Financial in the first quarter amounted to 668.2 billion KRW, a 358% increase compared to 145.8 billion KRW in the same period last year. KB Financial's first-quarter loan loss provision ratio was 0.63%, reflecting the possibility of expanded credit risk and the impact of conservative loan loss provisioning. The group’s first-quarter return on assets (ROA) and return on equity (ROE) were 0.88% and 12.40%, respectively, maintaining solid profitability, according to KB Financial.

Looking at the performance by affiliates, KB Kookmin Bank recorded a net profit of 931.5 billion KRW in the first quarter. This represents a 4.7% decrease compared to the same period last year due to additional provisions of 321 billion KRW for vulnerable sectors such as COVID-19 support, project financing (PF), and construction.

KB Securities posted a net profit of 140.6 billion KRW, non-life insurance recorded 253.8 billion KRW, and KB Kookmin Card reported 82 billion KRW, with net profit increasing by 55.7 billion KRW compared to the previous quarter. KB Life Insurance’s net profit was approximately 93.7 billion KRW.

KB Financial decided on a first-quarter dividend per share of 510 KRW, slightly increased from the previous year.

KB Financial Group Reports Record Q1 Net Profit of 1.4976 Trillion Won