The figures are down 7.3 pct YoY but in actual terms are up 2.2 pct when one-time factors are excluded such as results from acquisitions, taxes on its stakes in other firms, and profits from the sale of its building in Seoul and others
Chairman Yoon Jong-kyoo of KB Financial Group. (Photo: KBFG)
KB Financial Group logged a net profit of 3.068 trillion won last year, down 7.3 percent YoY due largely to boosts in general expenses. On the bright side, the firm still notched more than 3 trillion won for two consecutive years.
The financial group, however, failed to maintain the top spot among financial groups last year, yielding to Shinhan Financial Group.
However, net profit rose 2.2 percent if such one-time factors as results from acquisitions, taxes on its stakes in other companies, profit from the sale of the buildings in Myeong-dong, Seoul, and others are not taken into account.
The financial group’s annual profit has been greatly impacted by the slowdown in its 4th quarter operation. Its net profit for the quarter dipped 79 percent to 200.1 billion won, due mostly to the retirement payment of 286 billion won and special bonuses amounting to 185 billion won.
KB Kookmin Bank, the largest affiliate in the group, had its non-efficient factors removed in the Q4, except one-time expenses. The loan-loss provision remained as low as previous quarters, while its interest earnings continued to grow.
But it was a different story for non-banking affiliates, such as the non-life insurance and securities firms. Their net profits fell substantially from the preceding year due to losses sustained and boosts in loss ratios.
The financial group’s assets totaled 479.6 trillion won last year, up 9.8 percent YoY, while its total assets including AUM came to 731.8 trillion won, up 9.8 percent YoY with the health of the assets improving continuously with the NPL ratio downing to 0.61 percent, improving by 0.08 percentage points while the NPL coverage ratio rising to 138.9 percent from the introduction of IFRS9 requiring more loan loss provisions.
The group’s BIS ratio and average share capital ratio came to 14.6 percent and 13.97 percent respectively last year.
The group’s cash holdings continue to be sound, although it dropped a little toward the year-end of 2018 due to dividend payment and growth in loans.
On Feb. 8, 2019, the board of directors of KB Financial Group Inc. passed a resolution to declare a cash dividend of 1,920 won per common share (total dividend amount: 759,736,452,480 won), subject to shareholder approval. The record date is December 31, 2018, and in accordance with the Korean Commercial Code, the payment for such dividends is expected to be made within one month following shareholder approval at the annual general meeting of shareholders of KB Financial Group, which is expected to be held on March 27, 2019.
KB Financial Group Inc. was founded in 2008 and is headquartered in Seoul, South Korea. KB Financial Group Inc., a financial holding company, provides a range of banking and related financial services to consumers and corporations in South Korea and internationally.
It operates through Corporate Banking, Retail Banking, Other Banking Services, Securities Business, Non-life Insurance Business, Credit Card Business, and Life Insurance Business segments
The company offers deposit and credit products and services, and other related financial services to large, small, medium-sized enterprises and SOHOs, and individuals and households; and engages in trading in securities and derivatives, funding, and other supporting activities. It also provides investment banking, brokerage, and other supporting services; property and life insurance; and credit sale, cash service, and card loan service.
In addition, the company offers foreign exchange transaction; financial investment; credit card and installment finance; security investment trust management and advisory; financial leasing; real estate trust management; capital investment; collection of receivables or credit investigation; software advisory, development, and supply; investment advisory and securities dealing; claim; management; asset-backed securitization; investment trust; trust asset management; and real estate services.