KB Financial Group ranked No. 1 in Korean financial institutions in net profit in the first quarter, thanks to the growth of loans and interest income.
On April 22, KB Financial Group disclosed that its net profit for the first quarter stood at 1,453.1 billion won, an increase of 14.4 percent or 183.1 billion won from the same period of the previous year, through an announcement of its business performance in the first quarter of 2022.
KB Financial Group’s net profit eclipsed Shinhan Financial Group’s 1,400.4 billion won, empowering KB Financial Group maintaining its number-one position in terms of net profit among Korean financial groups.
Although its performance related to securities and derivatives was somewhat sluggish due to a rise in bond interest rates and a fall in the stock index, the financial group could achieve strong business performances thanks to an increase in interest income led by credit growth and the expansion of net interest margin (NIM).
Its net interest income stayed at 2,648.0 billion won in the first quarter, up 18.6 percent from the previous year. Its NIM hit 1.91 percent and KB Kookmin Bank’s NIM 1.66 percent, up 6bp and 5bp, respectively during the same period. This is attributable to the strengthening of asset repricing following three base rate hikes since August last year.
Net commission income reached 915 billion won in the first quarter, up 3.8 percent quarter on quarter.
It increased slightly due to the base effect of a large increase in brokerage fees in the first quarter of last year due to a boom in the stock market and the sluggish performance of bank trusts in 2022.
Its net other operating income decreased by 282.4 billion won compared to the same period in the previous year due to a decrease in performances related to securities and derivatives and a slump in the stock market.
In the first quarter, its provisions for credit loss reached 130.1 billion won. As of the end of March, the group's NPL ratio sat at 0.31 percent and its BIS equity ratio15.90 percent.
By affiliate, KB Kookmin Bank’s net income touched 977.3 billion won in first quarter of the year, up 41.9 percent from the same period of last year. Its interest income rose steadily thanks to credit growth and a rise in the NIM.
As of the end of March, Korean won-denominated loans stood at 321 billion won, up 0.8 percent from the end of the previous year.
KB Securities posted 114.3 billion won in net profit in the first quarter.
This was a 48.3 percent drop from the previous year, It was attributed to unfavorable environmental factors such as a stock market slump and a reverse money move caused by interest rate hikes.
KB Insurance's net profit for the first quarter hit 143.1 billion won, a sharp increase from 68.8 billion won in the same period of the previous year and 32.6 billion won in the previous quarter.
During the same period, KB Kookmin Card’s net profit totaled 118.9 billion won, a year-on-year increase of 74.1 billion won.
Prudential Life Insurance's net profit contracted by 34 percent compared to the same period of the previous year to 74 billion won.
