April 19, 2024
Finance
KB sees W2tr in H1 net profit, expected to maintain top position
[THE INVESTOR] KB Financial Group appears to be maintaining its position as the most profitable financial group in Korea in the second quarter, while its rival Shinhan Financial Group is trying to reclaim the top spot.
KB Financial Group announced net income of 946.7 billion won (US$834 million) in the second quarter, down 5.8 percent from a year earlier. But the bank recorded 1.9 trillion won for the first half of the year, increasing 2.9 percent from the same period in 2017. This is a record high since the financial holding group was set up in 2012.
“It is meaningful that we achieved a record high without one-time factors. It means the completion of decent loan growth and non-banking portfolio,” a KB official said.
KB Bank, the financial group’s main growth engine, saw an 11.9 percent year-on-year increase in net profit to 1.35 trillion won in the first half of the year.
Companies under KB Financial had 463 trillion won in total assets as of end-June, up 6.1 percent from a year ago.
Analysts say that KB will maintain its top position, which the financial group took from Shinhan Financial Group last year. Shinhan Financial had secured the top position for nine years before it was dethroned by KB Financial.
Shinhan Financial, which is scheduled to announce its results on July 24, is forecast to post 874 billion won in net profit in the second quarter, 3 percent lower than the previous year, according to market consensus.
Overall Korean financial groups and banks will continue to show decent returns in the second quarter, due to sound growth in net interest margin backed by the increasing interest rate and loans in the country, Kim Jin-sang, an analyst with HMC Securities said. “This trend is likely to continue in the next half of the year despite regulatory risks,” Kim added.
By Park Ga-young (gypark@heraldcorp.com)
KB Financial Group announced net income of 946.7 billion won (US$834 million) in the second quarter, down 5.8 percent from a year earlier. But the bank recorded 1.9 trillion won for the first half of the year, increasing 2.9 percent from the same period in 2017. This is a record high since the financial holding group was set up in 2012.
“It is meaningful that we achieved a record high without one-time factors. It means the completion of decent loan growth and non-banking portfolio,” a KB official said.
KB Bank, the financial group’s main growth engine, saw an 11.9 percent year-on-year increase in net profit to 1.35 trillion won in the first half of the year.
Companies under KB Financial had 463 trillion won in total assets as of end-June, up 6.1 percent from a year ago.
Analysts say that KB will maintain its top position, which the financial group took from Shinhan Financial Group last year. Shinhan Financial had secured the top position for nine years before it was dethroned by KB Financial.
Shinhan Financial, which is scheduled to announce its results on July 24, is forecast to post 874 billion won in net profit in the second quarter, 3 percent lower than the previous year, according to market consensus.
Overall Korean financial groups and banks will continue to show decent returns in the second quarter, due to sound growth in net interest margin backed by the increasing interest rate and loans in the country, Kim Jin-sang, an analyst with HMC Securities said. “This trend is likely to continue in the next half of the year despite regulatory risks,” Kim added.
By Park Ga-young (gypark@heraldcorp.com)
