[THE INVESTOR] JB Financial Group reported a record high net income last year, backed by increased earnings from interest and cost-saving efforts, the group said on Jan. 29.
The group recorded 321 billion won (US$287 million) in net profit, well above its yearly guideline of 288 billion won. It has also achieved a 20 percent on-year growth for three consecutive years.
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JB Financial building in Seoul
Net income of the group’s two largest banking units -- Kwangju Bank and Jeonbuk Bank -- increased by 13.5 percent and 54.5 percent on-year, respectively, to 153 billion won and 100.5 billion won.
Kwangju Bank’s results were fully reflected in the group’s balance sheet starting from the fourth quarter. JB Financial completed its comprehensive share swap with Kwangju Bank on Oct. 9, securing full ownership of the local bank.
JB Capital, a financial services unit, saw its net income increase by 5 percent to 75.1 billion won. Phnom Penh Commercial Bank, the Cambodian bank that the group acquired in 2016, also grew 17 percent to 14.8 billion won.
“The sound results reflect the increase in interest income stemming from the outstanding improvement in net interest margin and cost control efforts which overall increased operating leverage,” the group said in a statement, adding that it plans to maintain strong earnings momentum in 2019 with a net income target of 314.5 billion won.
By Park Ga-young (firstname.lastname@example.org)