KB Financial Group reported on 5 February 2025 a net profit of KRW 5.0782 trillion for 2024, up 10.5% from a restated KRW 4.5948 trillion a year earlier, making it the first South Korean financial group to earn more than KRW 5 trillion in a year. Fourth-quarter net profit fell 57.7% from the previous quarter to KRW 682.9 billion.
Net interest income rose 5.3% to KRW 12.8267 trillion and net fee income increased 4.8% to KRW 3.8496 trillion. The group net interest margin narrowed by 5 basis points to 2.03%, while KB Kookmin Bank's margin also fell 5 basis points, to 1.78%. The cost-to-income ratio improved by 0.4 percentage points to 40.7%.
NON-BANKING AFFILIATES LIFT EARNINGS
Earnings growth came despite large-scale compensation to customers over equity-linked securities and falling market interest rates. KB Securities increased its profit by 50.3%, KB Insurance by 17.7%, KB Kookmin Card by 14.7% and KB Life by 15.1%, while flagship lender KB Kookmin Bank's net profit edged down 0.3% to KRW 3.25 trillion.
Return on equity improved by 0.59 percentage points to 9.72%. The common equity tier 1 ratio stood at 13.51% and the BIS capital ratio at 16.41%.
SHAREHOLDER RETURNS OF KRW 2.02 TRILLION
KB's total shareholder return for 2024 came to KRW 2.02 trillion, or 39.8% of net profit, including a new KRW 520 billion share buyback and cancellation. The board approved the cancellation of 5,695,509 shares to be acquired on the Korea Exchange between 6 February and 5 May 2025, and declared a year-end dividend of KRW 804 per common share with a record date of 28 February 2025.