KB Financial Group nears first 6 trillion won net profit year, earns 5.8 trillion won through Q3

[Financial News] KB Financial Group is expected to become the first financial holding company in South Korea to post annual net profit of 6 trillion won this year. After surpassing 5 trillion won in annual net profit in 2024, attention is focused on whether it will reach a new milestone just two years later.
According to KB Financial on the 29th, net profit for the third quarter of this year was 1.9075 trillion won. Cumulative net profit reached 5.7921 trillion won, the highest ever for the period through the third quarter. If it earns at least 207.9 billion won in the fourth quarter, it will join the “6 trillion won club” for the first time.
KB Financial said it steadily managed general and administrative expenses and provision charges, supported by solid earnings capacity despite financial market uncertainty, including increased stock market volatility and rising market interest rates. It added that its fee-earning capacity had strengthened, with net fee income exceeding 1 trillion won for four consecutive quarters.
As of the end of September, KB Financial's Common Equity Tier 1 (CET1) ratio and Bank for International Settlements (BIS) capital ratio stood at 13.80% and 16.02%, respectively. Return on assets (ROA) and return on equity (ROE) were 0.93% and 13.89%, respectively, on a cumulative basis through the third quarter, marking significant year-over-year improvements in profitability and capital efficiency.
The group's net interest margin (NIM) was 1.92% in the third quarter of this year. The cumulative credit cost ratio (CCR) improved by 6 basis points from the same period a year earlier, to 0.40% (1 bp = 0.01 percentage point).
KB Kookmin Bank, the group's key affiliate, posted cumulative net profit of 3.5763 trillion won through the third quarter of this year. Earnings grew steadily on loan growth centered on corporate lending, despite a narrower NIM due to higher funding costs.
Among its nonbank affiliates, cumulative net profit at KB Securities and KB Kookmin Card Co., Ltd. rose 114.9% and 18.2%, respectively, from the same period a year earlier, supporting the group's results. Cumulative net profit at nonbank affiliates included 1.0675 trillion won at KB Securities, 681.1 billion won at KB Insurance, 331.7 billion won at KB Kookmin Card Co., Ltd., and 210.6 billion won at KB Life (standalone basis). The nonbank sector's share of cumulative net profit rose to 40.1% this year from 37% in the same period last year. That day, the KB Financial board resolved to pay a quarterly cash dividend of 1,167 won per share, up 237 won from the same period a year earlier, for a total of 404.9 billion won. The increase reflects a higher annual dividend total and the effects of share buybacks during the year.
KB Financial also emphasized its efforts to contribute to society, including improving access to financial services for financially vulnerable groups through inclusive finance. It generated social value worth 903.7 billion won in the third quarter of this year and 2.5663 trillion won cumulatively in the social contribution performance category. Social value is the impact of environmental, social and governance (ESG) activities in the financial and nonfinancial sectors on society, expressed in monetary terms.
KB Financial provides support including debt restructuring, guidance on policy financing, psychological counseling, and reductions of up to 90% in the principal of special claims against vulnerable groups. It has also pursued initiatives such as meal support for university students and workers, a 10 billion won contribution to a shared-growth cooperation fund, and donations for recovery from damage caused by torrential rain.
Na Sang-rok, executive vice president in charge of finance at KB Financial, said, “Even amid persistent uncertainty in financial markets, KB Financial is proactively responding to market changes, drawing on the balanced earnings-generating capacity of its banking and nonbanking businesses.” He added, “To secure sustainable future growth engines for the group, we plan to diversify our revenue sources and continue to pursue sound management focused on risk management and cost efficiency.”
[email protected] Ye Byung-jung Reporter