KB Financial Group set a new quarterly record, posting a first-quarter net profit nearing 1.9 trillion won this year.
KB Financial said on the 23rd that first-quarter net profit rose 11.5% from a year earlier to 1.8924 trillion won. It is up 11.5% year over year and marks the largest quarterly figure on record.
KB Financial said the bank's interest income base was managed stably while net fee income from the bank, securities, and asset management grew sharply, driving the group's results. The share of the nonbank institutional sector in group profit expanded to 43%.
First-quarter net interest income was 3.3348 trillion won, up 2.2% from a year earlier. Interest income was managed stably as the net interest margin improved on efforts to cut funding expense by expanding core deposits.
The group's first-quarter net interest margin (NIM) was 1.99%, and the bank's NIM was 1.77%, up 4 basis points and 2 basis points, respectively, from the previous quarter. First-quarter fee revenue increased 45.5% from a year earlier. Other operating profit and loss was 291.6 billion won, down 18.5% year over year.
At core subsidiary KB Kookmin Bank, first-quarter net profit was 1.101 trillion won, up 7.3% from a year earlier. KB Securities posted first-quarter net profit of 347.8 billion won, up 93.3% from a year earlier. KB Insurance recorded 200.7 billion won, and KB Life posted 79.8 billion won in net profit, respectively. KB Kookmin Card earned net profit of 107.5 billion won, up 27.2% from a year earlier.
Na Sang-rok, KB Financial's executive vice president for finance, said, "Diversifying and strengthening the revenue structure will be a powerful driver of sustainable growth to enhance shareholder and corporate value."
Earlier, KB Financial's board resolved a quarterly cash dividends of 1,143 won per share and a 600 billion won share repurchase and cancellation.