KB Financial Group's First Half Net Income Reaches 3.4 Trillion Won, Achieves Record Half-Year Performance

[Financial News] KB Financial Group achieved a net income of 3.4357 trillion won in the first half of this year. This is a record half-year performance, growing 23.8% compared to the same period last year.
The net income for the second quarter was 1.7384 trillion won, slightly increasing from a year ago and exceeding market expectations. Although interest income decreased due to the full-scale decline in interest rates, the impact of last year's equity-linked securities (ELS) provision accumulation disappeared, and non-interest income expanded as net fee income exceeded 1 trillion won for the first time in a quarter.
KB Financial also announced additional plans for a 850 billion won share buyback and cancellation and a cash dividend of 920 won per share. The total shareholder return for this year is expected to be 3.1 trillion won, reaching a record high level.
■ Record First Half Performance This Year 
KB Financial announced this '2025 First Half Business Performance' on the 24th. The first half net income increased by 672.2 billion won to 3.4357 trillion won compared to the same period last year, and the second quarter net income increased by 60 billion won to 1.7384 trillion won, setting new records for both half-year and quarterly performances.
In particular, KB Kookmin Bank's bancassurance sales fees and KB Securities' brokerage fees increased by 10.5% to 1.032 trillion won in the second quarter compared to the previous quarter, supporting the group's performance. It is the first time that net fee income exceeded 1 trillion won on a quarterly basis.
A KB Financial representative explained, "Non-interest income expanded due to the expansion of other operating profit and fee income improvement from the impact of exchange rate decline and stock index rise," adding, "The disappearance of last year's ELS provision accumulation impact and the reflection of gains from the sale of investment real estate in connected funds led to the recovery of non-operating profit, driving the performance."
KB Financial's first half net interest income was 6.3687 trillion won, down 0.4% from the first half of last year due to the impact of the net interest margin (NIM) reduction following the market interest rate decline. The NIM for KB Financial in the second quarter was 1.96%, and the bank NIM was 1.73%, each falling by 0.05%p and 0.03%p compared to the previous quarter.
Among the major management indicators, as of the end of last month, the Bank for International Settlements (BIS) capital ratio and the Common Equity Tier 1 (CET1) ratio were 16.63% and 13.59%, respectively, maintaining the industry's highest level thanks to active risk-weighted asset management efforts and solid net income growth. As of the end of last month, the group's non-performing loan (NPL) ratio was 0.72%, improving by 0.04%p compared to the previous quarter.
By subsidiary, the core subsidiary KB Kookmin Bank's first half net income was 2.1876 trillion won, a sharp increase of 45.3% compared to the first half of last year. Although the NIM fell as market interest rates declined, the complete disappearance of last year's ELS provision accumulation impact and the expansion of bancassurance sales fees and investment banking fee income contributed to the increase. The second quarter net income also increased by 13.1% to 1.1612 trillion won compared to the previous quarter. As of the end of June, the delinquency rate was 0.31%, and the NPL ratio was 0.35%, each falling by 0.04%p and 0.05%p compared to the previous quarter.
KB Securities' first half net income was 338.9 billion won, down 9.9% compared to the first half of last year. Although total operating income expanded due to the overall improvement in business conditions such as stock market recovery and interest rate decline, the impact of preemptive provisions for real estate PF projects was significant.
KB Insurance's first half net income (558.1 billion won) decreased by 2.3%, and KB Kookmin Card (181.3 billion won) decreased by 29.1%. KB Life achieved a similar 189.1 billion won to the first half of last year due to the impact of increased new contract sales and indirect cost reduction, leading to a reduction in the expected and actual difference.
■Shareholder Returns Exceed 3 Trillion Won This Year
KB Financial announced additional plans for a cash dividend of 920 won per share and a 850 billion won share buyback and cancellation according to the shareholder return framework. The share buyback and cancellation is fulfilling the promise to use the excess portion of the CET1 ratio of 13.5% as of the end of the first half as a resource for shareholder returns in the second half.
KB Financial's CFO Sang-rok Na stated, "The total shareholder return for this year is expected to be 3.01 trillion won, achieving the highest total shareholder return rate ever, considering market consensus," and emphasized, "We will further solidify market trust with a consistent and differentiated shareholder return policy based on the industry's highest level of capital strength and stable profit generation capability."
KB Financial is also contributing to the realization of an inclusive society through warm finance. KB Financial announced that the social value calculated in monetary terms for the impact of environmental, social, and governance (ESG) management activities in the financial and non-financial sectors on the environment and society was 802.3 billion won in the second quarter, and a total of 1.5871 trillion won on a cumulative basis for the first half.
gogosing@fnnews.com Park So-hyun Reporter