KB Financial Group posted its best-ever first-half business performance, despite accumulating more than 1 trillion won in provisions.
Its interest income increased as market interest rates rose. A significant improvement in other operating income, while adjusting its asset management portfolio, also contributed to the financial group’s largest net profit on a half-yearly basis.
KB Financial Group announced that its net profit reached 1,499.1 billion won in the second quarter of this year based on consolidated financial statements.
On a half-yearly basis, its net profit reached 2,996.7 billion won, the largest first half net profit. The increase was largely due to rising interest rates.
KB Financial Group’s net interest income in the first half of this year was 5,759 billion won, up 5.2 percent from 5,472.8 billion won in the same period of 2022.
KB Financial Group’s interest income in the first half of this year totaled 13,997.2 billion won, up 55.5 percent from 8,999.8 billion won in the first half of last year. Its interest expenses amounted to 8,238.2 billion won, up 133.6 percent from 4,157.2 billion won in the same period of last year.
Based on this, KB Financial Group’s net interest margin (NIM) touched 2.10 percent in the first half of this year. This represented an improvement of 0.14 percentage points compared to 1.96 percent in the first half of last year.
KB Financial Group’s commission income in the first half stood at 1,865.4 billion won, down 1.4 percent from 1,891.8 billion won in the same period last year.
On the other hand, its other operating income improved significantly. It reached 1.032.4 billion won in the first half, up from a loss of 481.7 billion won in 2022.
The increase in net income was achieved despite a significant increase in KB Financial Group’s loss absorption capacity.
In the first half of the year, KB Financial Group set aside 1,319.5 billion won in provisions for credit losses. This was an increase of 84.39 billion won compared to the first half of last year.
KB Financial Group announced on Aug. 11 that it will launch a financial support program for the rapid recovery of areas across the country affected by Typhoon Kanun which hit Korea in August.
KB Financial Group has been proactively operating financial support programs such as special loans, maturity extensions, preferential interest rates, deferrals of insurance premiums, and card payments since the end of June in preparation for heavy rainfall during the rainy season.
It will provide the same financial support programs to customers affected by Typhoon Kanun.
In particular, KB Kookmin will support customers affected by Typhoon Kanun by providing special loans within the range of the damage amount. In the case personal loans of up to 20 million won offered for the stabilization of their livelihood.
In the case of loans to businesses, such as self-employed people, small and medium-sized enterprises (SMEs) and others, the lender will provide a special preferential interest rate for working capital and up to 500 million won for funds to restore damaged facilities.