[THE INVESTOR] JB Financial Group reported an 18.2 percent jump in net income in the third quarter, backed by increased earnings from interest, the group said on Nov. 2.
The group recorded 285 billion won (US$252 million) net profit, which is only 2.5 billion less than its guideline for the entire year.
“The sound results reflect the outstanding improvement in net interest margin and downward stabilizing credit costs and selling, general and administrative expenses. The group’s commitment to strengthen its capital adequacy and asset quality also helped,” CFO Jae-Yong Lee said.
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Net income of the group’s two largest banking units -- Kwangju Bank and Jeonbuk Bank -- saw a 10 percent increase on-year to 141 billion won, and a whopping 51.4 percent jump to 87.3 billion won, respectively.
JB Woori Capital, a financial services unit, saw its net income increase by 5 percent to 63.2 billion won. Phnom Penh Commercial Bank, the Cambodian bank that the group acquired in 2016, also grew 30 percent to 11 billion won.
“The group’s positive earnings momentum will continue in 2019,” Lee added, citing the completion of Kwangju Bank’s share swap. It completed its comprehensive share swap with Kwangju Bank on Oct. 9, securing full ownership of the local bank. The bank’s results are expected to be fully reflected in the group’s results from the fourth quarter.
Shares of KOSPI-listed JB Financial rose more than 3 percent following the news.
By Park Ga-young (firstname.lastname@example.org)