KB Financial, H1 Net Profit Up 44% to 2.4743 Trillion Won... 750 Won Interim Dividend (Update)

KB Kookmin Bank's First Half Net Profit Increases by 14.1%
KB Securities Also Achieves Record Half-Year Net Profit

[Asia Economy Reporter Park Sun-mi] KB Financial Group recorded a net profit of 2.4743 trillion KRW in the first half of the year, marking a 44.6% increase compared to the same period last year.

On the 22nd, KB Financial announced that its net profit for the first half reached 2.4743 trillion KRW, up 44.6% (763 billion KRW) from the same period last year. This was driven by steady growth in core earnings, strengthened profit stability through inorganic growth via mergers and acquisitions (M&A), and a base effect from additional loan loss provisions recorded in the second quarter of last year.

However, net profit for the second quarter was 1.2043 trillion KRW, down 5.2% (65.7 billion KRW) compared to the previous quarter. While net interest income increased due to solid loan growth, the growth in net fee income slowed somewhat due to a decrease in stock trading volume and bank trust sales, and bond valuation gains shrank due to rising market interest rates.

As of the end of June, KB Financial's total assets stood at 633.7 trillion KRW, an increase of 23.1 trillion KRW compared to the end of last year. Including assets under management (AUM), the group's total assets reached 1,003.1 trillion KRW.

By major affiliates, KB Kookmin Bank's net profit for the first half was 1.4226 trillion KRW, up 14.1% (175.9 billion KRW) from the same period last year. The second quarter net profit was 734.1 billion KRW, increasing 6.6% (45.6 billion KRW) quarter-on-quarter despite a decline in fee income due to reduced trust product sales, supported by solid loan growth and the expiration of the impact from the first quarter’s internal employee welfare fund accrual.

KB Securities posted a net profit of 153.3 billion KRW in the second quarter, down 30.7% quarter-on-quarter, but recorded a net profit of 374.4 billion KRW for the first half, achieving the highest half-year performance ever. This was due to a booming stock market, efforts to increase customer custody assets, expansion of the IB business, a significant increase in securities brokerage fees, and a substantial improvement in the previously weak S&T division’s performance, including gains from ELS hedge profits.

KB Insurance’s net profit for the first half was 142.9 billion KRW, showing a similar level to the same period last year due to expanded insurance profits. KB Kookmin Card recorded a net profit of 252.8 billion KRW for the first half, a 54.3% (89 billion KRW) increase compared to the same period last year. The net profit of Prudential Life Insurance, acquired last year, was 192.4 billion KRW for the first half.

Meanwhile, on the same day, KB Financial’s board of directors resolved to pay an interim dividend of 750 KRW per share for the first time since the financial holding company was launched.