KB Financial Group's Cumulative Net Income Hits KRW 5.8 Trillion, Nears First-Ever "KRW 6 Trillion Club" Among Financial Holding Companies

Record-high results for both the third quarter and first nine months, up 13.1% year over year
Strong fee income drives growth...annual net income on the verge of topping KRW 6 trillion
Continues shareholder returns...quarterly dividend of KRW 1,167 per share

KB Financial Group posted record-high net income for both the third quarter and the first nine months of this year. Cumulative net income through the third quarter reached KRW 5.7921 trillion, raising the possibility that it will become the first financial holding company to exceed KRW 6 trillion in annual net income. Broad-based earnings from its banking and nonbanking businesses, along with strong fee income, drove the growth.

KB Financial Group disclosed on October 29 that its net income for the third quarter was KRW 1.9075 trillion. That was up 13.1% from KRW 1.686 trillion in the same period last year, but down 4.3% from KRW 1.9922 trillion in the previous quarter.

Cumulative net income for the first nine months of this year was KRW 5.7921 trillion, up 13.1% from KRW 5.1217 trillion in the same period last year. Both the third-quarter and nine-month figures were record highs. After exceeding KRW 5 trillion in annual net income in 2024, the group is now on the verge of reaching KRW 6 trillion in just two years.

Net interest income and net fee and commission income supported earnings growth. The group's net interest income for the third quarter was KRW 3.507 trillion, up 5.1% from KRW 3.3362 trillion a year earlier. Net fee and commission income increased 14.2% to KRW 1.1266 trillion.

However, net interest margins (NIMs) fell during the quarter. The group's NIM was 1.92% and the bank's NIM was 1.72%, each down 2 basis points from the previous quarter (1 basis point = 0.01 percentage points). Yields on loan assets improved somewhat, but the spread between loan and deposit rates narrowed as increased volatility in funding markets raised funding costs.

Profitability indicators also improved. For the first nine months of this year, return on equity (ROE) was 13.89% and return on assets (ROA) was 0.93%. The common equity tier 1 (CET1) ratio stood at 13.80% at the end of September, remaining stable.

Among its subsidiaries, KB Kookmin Bank posted third-quarter net income of KRW 1.3509 trillion, up 14.8% from KRW 1.1769 trillion in the same period last year. Its cumulative net income for the first nine months rose 6.3% year over year to KRW 3.5763 trillion.

Among the nonbank subsidiaries, KB Securities' third-quarter net income increased 71.9% year over year to KRW 271.2 billion, while KB Kookmin Card's rose 13.6% to KRW 112.8 billion. By contrast, KB Insurance's net income fell 3.1% to KRW 202.3 billion, and KB Life Insurance's net income on an individual basis declined 8.7% to KRW 60 billion. KB Asset Management's net income also fell 11.9% to KRW 22.2 billion.

The group also continued its shareholder returns. On October 29, the KB Financial Group board approved a quarterly cash dividend of KRW 1,167 per share, totaling KRW 404.9 billion. The per-share dividend was KRW 237 higher than in the third quarter last year.

Na Sangrok, executive vice president in charge of finance at KB Financial Group, said, "Despite persistent uncertainty in financial markets, we are proactively responding to market changes based on the balanced earnings-generating capacity of our banking and nonbanking businesses, and continuing to deliver stable earnings growth."

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