April 20, 2024

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[THE INVESTOR] JB Financial Group on May 4 reported that its first-quarter net income grew 36 percent on-year to 64.2 billion won (US$59.60 million).

Its banking unit Jeonbuk Bank led the group’s earnings performance, with quarterly net income soaring 172.5 percent to 24.9 billion won.

Other key units Kwangju Bank and JB Woori Capital also stayed upbeat, reporting 5.3 percent and 8.8 percent growth in net profit to 45.1 billion won and 20.1 billion won, respectively. 

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“Increased net interest margin and healthy asset quality have contributed to the sound profit across affiliates,” a JB official said at a conference call on the day. “The group’s overall profits have been elevated to a higher level.”

The group’s net interest margin was 2.58 percent, up 0.20 percent from a year ago, outpacing its industry rivals.

“Following a rate hike in November, loans with higher interest have been replacing existing loans to drive up our NIM in the first quarter,” the official said.

The firm added it expects the solid growth to continue due to profit diversification strategies that include fees from Obank, its first open banking platform that was launched in March.

By Lee Ji-yoon (jylee@heraldcorp.com)