On Oct. 25, KB Financial Group announced its business results for the third quarter of 2022 through internet and mobile live-streaming services.
KB Financial Group posted 4,027 billion won in accumulated net income in the third quarter.
The result is attributable to solid net interest income growth and thorough cost management on the back of credit growth and the expansion of its NIM, despite the difficult business environment caused by a stock market downturn and increased volatility in the financial market.
The figure represented an increase of 6.8 percent or 255.5 billion won compared to the same period of 2021. The increase proves the group’s solid profit-generating power once again.
Its net income for the third quarter amounted to 1,271.3 billion won, down 2.5 percent from the previous quarter.
It was blamed on the base effects of the sale of KB Insurance’s real estate for approximately 123 billion won after tax which was a one-time gain in the second quarter.
Excluding the amount, its net income grew 7.7 percent from the previous quarter.
KB Financial Group achieved remarkable results in terms of IB commission income. IB commission income surged 56.1 percent compared to the same period of the previous year.
This is because the financial group made efforts to strengthen the competitiveness of the IB business and secure a solid position in the IB market and the efforts paid off handsomely.
It also made an improvement to performances related to securities, derivatives and foreign exchanges compared to the previous quarter by efficiently responding to the market through the diversification of asset portfolios and flexible positioning strategies.
By major affiliate, KB Kookmin Bank racked up quarterly net profits of 824.2 billion won thanks to solid interest income growth and excellent cost control, driving the group’s earnings improvement.
KB Securities posted sound quarterly net profits of 121.7 billion won thanks to the strong performance of the Sales & Trading (S&T) Division.
On the other hand, KB Insurance recorded 520.7 billion won in net profits on a cumulative basis in the third quarter as its overall profit-making strength was restored through an improvement in its loss ratio and cost management.
“Once again, KB Financial Group has proven the group’s solid fundamentals and profit-generating power despite tough business conditions coupled with increased volatility in the financial market,” said an official of KB Financial Group about these performances.
“Even in a situation where credit risk is expanding due to a steep rise in interest rates, the group’s credit cost stood at 0.24 percent on a cumulative basis in the third quarter, which means that it was managed at a stable level.”
In addition, he added, “As a result of steady conservative and prudential management policies and preemptive risk management, KB Financial Group’s NPL coverage ratio was 219.7 percent at the end of September, securing the industry’s top-level loss absorption capacity to respond to potential insolvency.”
Meanwhile, on the same day, KB Financial Group’s Board of Directors decided to pay a quarterly dividend of 500 won per share. As a result, the cumulative quarterly dividend for 2022 reached 1,500 won per share.
