KB Financial Group Posts Record-High Net Profit of 3.8846 Trillion Won in First Half, Non-Interest Income Surges

Non-Interest Income Up 33% Year-on-Year
Net Profit at KB Securities Surges 135% from Previous Year
Securities Contribute 21% to Group Earnings

KB Financial Group posted a record-breaking net profit of over 3.88 trillion won in the first half of this year, surpassing its previous semi-annual all-time high after just one year. Thanks to an increase in net fee and commission income from its core subsidiaries, such as banking and securities operations, as well as a rebound in credit card performance, its non-interest income jumped by 33% year-on-year to achieve an all-time record.

Yang Jonghee, Chairman of KB Financial Group

On July 23, KB Financial Group announced in a regulatory filing that its net profit for the first half of the year stood at 3.8846 trillion won, up 13.1% from the same period last year (3.4357 trillion won). This marks its largest-ever semi-annual result. A representative from KB Financial Group explained, "Despite growing financial market volatility caused by rising exchange rates, interest rates, and geopolitical risks, stable interest income and a substantial increase in fee and commission income drove solid results."

Net interest income for the first half increased by 1.7% year-on-year to 6.4783 trillion won. This was driven by profitability management focused on reducing funding costs and steady growth in bank lending. The group’s net interest margin (NIM) rose from 1.94% in the first half of last year to 1.97% in the same period this year.

Non-interest income reached an all-time high of 3.6292 trillion won, up 33.3% from the previous year. Breaking down net fee and commission income alone, it expanded 50.6% year-on-year to 2.961 trillion won, compared to 1.966 trillion won a year earlier. Earnings included 385.8 billion won from credit card fee income, 558.4 billion won from trust business, 1.009 trillion won from securities brokerage fees, and 211.3 billion won from foreign exchange commissions.

The group's return on assets (ROA) and return on equity (ROE) stood at 0.95% and 14.09%, respectively, up from 0.90% and 13.03% in the same period last year—demonstrating improved profitability and capital efficiency. The cost-to-income ratio (CIR), a measure of cost efficiency, decreased from 36.9% last year to 36.2% this year.

Looking at the second quarter alone, KB Financial Group achieved another record with net profit of 1.9922 trillion won, up 14.6% from 1.7384 trillion won in the second quarter of the previous year. Second-quarter net interest income came to 3.1435 trillion won, and non-interest income totaled 1.9783 trillion won.

By subsidiary, KB Kookmin Bank reported first-half net profit of 2.2254 trillion won, up 1.7% year-on-year. However, for the second quarter alone, it recorded 1.1244 trillion won, which is a 3.2% decrease from the same quarter last year.

KB Securities’ first-half net profit soared to 796.3 billion won, up 135% year-on-year. For the second quarter alone, it climbed 182.1% to 448.5 billion won compared to last year.

Additionally, for the first half of this year, KB Insurance reported net profit of 478.8 billion won, KB Card posted 218.9 billion won, and KB Asset Management achieved 83.1 billion won. A KB Financial Group representative commented, "On the back of a diversified portfolio, our core subsidiaries—banking, securities, and insurance—showed complementary performance in response to changing market environments, with non-banking affiliates’ contribution to group earnings rising to 44% in the first half. In particular, the contribution from securities expanded to 21%, leading the growth in non-banking performance."

As of the end of June, KB Financial Group’s Common Equity Tier 1 (CET1) ratio stood at 13.74%, and its BIS capital adequacy ratio was 15.91%.

On this day, KB Financial Group announced its "Second 2026 Shareholder Return" plan under its shareholder return framework, utilizing capital exceeding the CET1 ratio of 13.5% as of the end of the first half. It intends to conduct a share repurchase and cancellation worth 700 billion won in the second half. The Board of Directors also resolved to pay a quarterly cash dividend of 1,155 won per share.

Nasangrok, Executive Vice President in charge of finance at KB Financial Group, stated, "Considering both the first shareholder return announced in February and this second round, our total shareholder return this year is expected to reach approximately 3.7 trillion won. The remaining surplus capital, excluding the 700 billion won earmarked for share repurchase and cancellation, will be considered for additional shareholder returns in the second half, taking into account this year’s profit scale, price-to-book ratio (PBR), and dividend yield trends."

This content was produced with the assistance of AI translation services.