KB Kookmin Card Strikes Balance Between Asset Quality and Profitability... "First-Half Results Prove Internal Stability Management"

Net Profit Up 20.7%, Total Assets Grow by KRW 1.92 Trillion

Lower Provision Burden, Continued Cost Efficiency

Pursuing Future Growth Strategies with AI, KB Pay, and New Payment Solutions

It appears that KB Kookmin Card has achieved stable results in the first half of this year, leveraging the "management focused on fundamentals" that has been promoted since last year. The company not only improved its profit structure but also enhanced its asset soundness, successfully improving its overall business framework.

Kim Jaegwan, President and CEO of KB Kookmin Card. Kookmin Card

According to KB Kookmin Card on July 25, its net income for the first half of the year was 218.9 billion won, up 20.7% (37.6 billion won) from the same period last year. Net income for the second quarter also increased by 15.1% (14.6 billion won) year-on-year to 111.4 billion won, continuing the trend of solid performance improvement. Total assets expanded to 31.285 trillion won, a 6.5% increase (1.9219 trillion won) year-on-year, further strengthening the company's growth foundation.

A KB Kookmin Card representative said, "It is significant that we were able to strengthen both profitability and our asset base in what has been a challenging environment, marked by slowing financial asset growth and rising funding costs."

The most notable aspect of the first-half performance is the balance between soundness and profitability. Due to an increase in card usage, non-interest income has grown, and credit loss provisions were reduced by 25.3 billion won year-on-year, supporting profitability. This indicates that successful risk management is leading to substantial improvements in profits and losses. These results are interpreted as stemming from efforts such as operating a portfolio focused on high-quality assets and advancing AI-based credit rating models, rather than simple short-term accounting effects.

Improvements in the cost structure were another pillar supporting performance. General administrative expenses in the first half came to 285.6 billion won, down 2% (5.8 billion won) from the same period last year. With cost efficiency established across overall business operations and the introduction of a performance-based spending system, the company has maintained a stable cost structure even amid uncertainty. Efforts to reduce interest expenses through diversification of funding sources, including the issuance of Kimchi bonds and overseas asset-backed securities, have also continued, laying the groundwork for improvements in both profitability and capital efficiency.

Product competitiveness has also been further reinforced. With the introduction of the new "ALL·YOU·NEED" brand system this year, KB Kookmin Card has built a product portfolio reflecting customers' consumption goals and lifestyles. The related advertising campaign has reached a cumulative 30 million views, contributing to broader brand competitiveness. In the corporate card segment as well, the company is expanding customer touchpoints through a redesigned, customer-centric design system and sales-focused organizational operations.

The company is also accelerating its future growth strategy. Centered around an AI-based operating model, KB Kookmin Card is restructuring its work and decision-making processes, and is translating AI capabilities into tangible outcomes through the adoption of co-pilot solutions and data restructuring. At the same time, the company is enhancing cost competitiveness by optimizing IT investments and cloud resources, considering return on investment (ROI).

In the New Payment sector, the company is preparing for the future payment market by focusing on payment technologies such as stablecoin, AI agent payments, and digital asset-linked payments. KB Kookmin Card is also expanding collaborations with global blockchain companies, positioning itself to secure business opportunities and revenue streams in the emerging payment ecosystem.

Meanwhile, alongside its growth strategy, KB Kookmin Card continues to advance inclusive finance. By operating financial products and coexistence programs for small business owners, such as the "KB MyBiz CEO Dunden Business Card," the company is improving financial accessibility. KB Kookmin Card has also been selected by the Financial Supervisory Service as an excellent institution for new products in win-win and cooperation finance, demonstrating its commitment to both social responsibility and sustainable growth.

A KB Kookmin Card representative said, "Our first-half performance is not merely about profit improvement, but rather a balanced outcome across profitability, soundness, cost efficiency, platform competitiveness, and future growth strategy. Based on this foundation, we plan to maintain stable growth in the second half by driving innovation in AI-based operations, strengthening core business competitiveness, monetizing our platform, and expanding into new payment areas."

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