KB Financial Group surpassed annual net profit of 5 trillion won in 2024, as its non-banking affiliates led the way in improving performance amid KB Kookmin Bank’s stagnant business.
KB Financial Group announced its annual net profit of 5,078.2 billion won in its earnings report on Feb. 5.
The group’s performance was driven by expanding non-banking profits despite unfavorable business conditions, including compensation for ELS losses and a drop in the interest rate.
KB Securities posted a 50.3 percent year-on-year increase in net profit, KB Insurance 17.7 percent, KB Kookmin Card 14.7 percent, and KB Life Insurance15.1 percent.
Net income earned by KB Financial Group’s non-banking affiliates amounted to 2,267.5 billion won, accounting for 40 percent of the group’s total net income.
KB Securities enjoyed an increase in profits from sales of financial products, as its asset management business settled and sales rose in its institutional stock brokerage business.
KB Insurance boosted its insurance operating income thanks to its new long-term life insurance business.
KB Life Insurance also contributed to the group’s business performance on the strength of a rise in new contract sales and higher business efficiency.
KB Kookmin Card posted an increment in its operating income thanks to the expansion of the number of its credit card users, the growth of its financial assets and higher cost efficiency in new customer recruitment despite a cut in commissions from merchants.
KB Financial Group’s non-interest income also went up, as its non-banking affiliates performed well. Its commission income ascended by 4.8 percent year on year to 3,849.6 billion won.
Its non-interest income reached 4,201.5 billion won including other operating income.
KB Financial Group experienced a decline in banking and real estate trust commissions due to the suspension of ELS sales early last year and a downturn in the real estate PF market.
However, its commission income inflated by 99.7 billion won year on year due to an increase in credit card commission income from an increase in the number of KB Kookmin Card users and improved cost efficiency, the expansion of commissions for the securities business in the IB division, and an increase in leasing fees for KB Capital.
The steady growth of KB Financial Group’s interest income also contributed to strong business results.
As loan demand expanded in anticipation of an interest rate cut, KB Kookmin Bank’s loan asset balance swelled and the contribution of the group’s non-bank affiliates to interest income grew, resulting in annual interest income of 12,826.7 billion won.
KB Financial Group excelled at risk management as well.
The group’s NPL ratio stood at 0.65 percent, an improvement of 0.03 percentage points from three months earlier.
Its NPL coverage ratio also remained strong at 150.9 percent, maintaining a good loss absorption capacity.
Meanwhile, Kookmin Bank’s annual net profit contracted by 0.3 percent year-on-year to 3,251.8 billion won.
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