KB Financial Group announced on Oct. 21 that its cumulative net profit reached 3,772.2 billion won by the third quarter of 2021, up 31.1 percent (894.3 billion won) from 2,877.9 billion won a year earlier.
This is an achievement is owed to efforts to expand the foundation for profit generation and diversify business portfolios through M&A. Net profit hit 1,297.9 billion won in the third quarter.
“Our net profit rose 7.8 percent compared to 1,204.3 billion won in the previous quarter thanks to a stable increase in net interest income and net commission income and a drop in provision for credit losses and maintained solid profit growth on a current basis, excluding major one-off factors such as the reversal of loan loss provisions,” a KB Financial Group official said.
KB Kookmin Bank, the financial group’s flagship affiliate, posted a cumulative net profit of 2,003 billion won through the third quarter, with interest income rising due to asset growth and loan growth caused by M&A.
Commission income expanded due to trust profits and profits from the IB business. It rose 16.9 percent year-on-year (317.9 billion won) from a year earlier, as credit loss reserves decreased and the impact of accumulating additional loan-loss reserves related to COVID-19 disappeared last year.
Its net profit stood at 777.7 billion won in the third quarter, up 5.9 percent (43.6 billion won) from the previous quarter.
KB Securities’ total net profit by the third quarter sat at 543.3 billion won, up 204.8 billion won from a year before, with increases in stock trading costs and customer trust, and a significant improvement in IB business fees and capital market-related profits.
KB Insurance’s cumulative net profit hit 269.2 billion won in the third quarter, up 44.3 percent (82.6 billion won) from a year earlier thanks to the expansion of insurance profits, as well as increased dividend profits from investment funds.
Prudential Life Insurance posted 255.6 billion won in total net profit in the first three quarters of 2021, largely thanks to a stable increase in interest income, a decrease in new contract costs and increased investment profits.
KB Kookmin Card’s cumulative net profit during this period reached 374.1 billion, up 46.6 percent (1,189.9 billion won) from a year earlier thanks to increases in interest income and card usage and commission incomes.
“As we have secured an enough buffer against future uncertainties by setting aside an additional allowance of about 380 billion won last year, the possibility of asset soundness deteriorating sharply even after the end of financial support is limited,” a KB Financial Group official said regarding the market’s growing concern about asset soundness.
Various financial support programs are being extended, and there is a growing possibility of raising the benchmark interest rate.
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