KB Financial Group announced on the 24th that its cumulative net profit for the third quarter reached KRW 4.3704 trillion, an 8.2% increase compared to the previous year. This is the highest level on a cumulative basis in history.
The net profit for the third quarter was KRW 1.3737 trillion, a 0.4% increase year-on-year but an 8.4% decrease compared to the previous quarter.
The net interest income for the third quarter was KRW 3.0879 trillion, up 3.8% from the previous quarter. The cumulative net interest income recorded KRW 8.8472 trillion. The group's net interest margin (NIM) for the third quarter was 2.09%, while the bank's NIM was 1.84%.
The net fee income for the third quarter was KRW 901.4 billion, a 5.3% decrease from the previous quarter, which the company explained was due to the relative weakness of IB fees and a decrease in trust fees compared to the previous quarter. The cumulative net fee income for the third quarter was KRW 2.7668 trillion.
As an asset soundness indicator, the group's cumulative loan loss provision ratio (CCR) for the third quarter was 0.52%. As of the end of September, the group's non-performing loan (NPL) ratio was 0.48%, and the NPL coverage ratio was 180.4%, indicating stable management supported by proactive risk management.
Capital adequacy indicators based on the Basel Committee on Banking Supervision (BIS) standards showed a capital adequacy ratio and common equity tier 1 ratio of 16.76% and 13.70%, respectively.
As of the end of September, KB Financial's total assets amounted to KRW 716.4 trillion, and the group's total assets including assets under management (AUM) reached KRW 1,206.2 trillion.
Looking at the performance of major affiliates, KB Kookmin Bank's cumulative net profit for the third quarter was KRW 2.8554 trillion, a 12% increase compared to the same period last year. As of the end of September, won-denominated loans stood at KRW 336 trillion, increasing 1.8% from the end of June, mainly driven by corporate loans. In particular, large corporate loans among corporate loans grew significantly by 8.9% quarter-on-quarter, led by a contraction in the corporate bond issuance market and an overall increase in loan demand, driving loan growth. Household loans also increased by 0.6% compared to the end of June as loan demand recovered, centered on mortgage loans and jeonse deposit loans.
In the case of KB Insurance, the cumulative net profit for the third quarter was KRW 680.3 billion, recording similar performance to the previous year. The net profit for the third quarter was KRW 155.1 billion, a decrease of KRW 116.3 billion from the previous quarter due to a one-time loss from changes in actuarial assumptions for indemnity insurance and losses from oil derivatives. However, the company explained that on a recurring basis, the performance remained solid at around KRW 200 billion.
KB Kookmin Card's cumulative net profit for the third quarter was KRW 272.4 billion, down KRW 79.9 billion year-on-year due to increased funding costs from sustained high interest rates and increased credit loss provisions. The net profit for the third quarter was KRW 79.5 billion, a 28.3% decrease from the previous quarter.
KB Financial's Chief Financial Officer stated, "Despite the challenging domestic and international business environment, we are maintaining stable profitability through balanced growth between banking and non-banking affiliates, expansion of non-interest income, and control of selling and administrative expenses." He emphasized, "In particular, net fee income has recorded KRW 900 billion each quarter this year, thanks to the group's efforts to diversify its business."
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