KB Financial Group reported a net profit of KRW 1.697 trillion for the first quarter of 2025, as the absence of last year's ELS compensation provisions, higher securities-related gains and a modest improvement in the bank-level net interest margin contributed to the result. The prior year's first quarter had been weighed down by large provisions related to equity-linked securities losses. Return on equity reached 13.04% for the quarter.
The group's cost-to-income ratio improved to a record low of 35.3%. Non-interest income reached KRW 1.29 trillion for the quarter, up 4.9% year-on-year, driven mainly by higher securities-related gains as market interest rates fell.
NET INTEREST MARGIN
The group net interest margin came in at 2.01%, up 3 basis points quarter-on-quarter, while the bank-level NIM rose 4 basis points to 1.76%. The improvement was attributed primarily to declining deposit funding costs as fixed-term deposits originated at the elevated rates prevailing during the peak of the interest rate cycle matured and were renewed at lower current market rates.
CAPITAL
The group's Common Equity Tier 1 ratio stood at 13.67%.