KB Financial Group profit rises on credit business

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KB Financial Group profit rises on credit business

KB Financial Group announced on Thursday the group posted a 20.1 percent on-year growth in the operating profit in the first half of this year, thanks to an improvement in the net interest margin (NIM) and steady growth in the credit business.

The group recorded about 1.13 trillion won in net operating profit in the first six months, helping its total assets reach 471.4 trillion won, up 5.1 percent from the end of 2015.

In the second quarter alone, net earnings stood at 580.4 billion won, up 6.5 percent from the first quarter. The NIM rose 2.5 percent on-quarter in the April - June period.

“Despite the aggravated sales environment, including a rate cut by the Bank of Korea and corporate restructuring, continuous growth in the credit business and NIM improvement helped the group achieve a better-than-expected performance,” a group official said.

Shinhan Financial Group also announced a 13.3 percent on-year increase in the first-half operating profit. The group’s net earnings stood at 1.45 trillion won, owing to modest growth in the NIM of the bank subsidiary.

However, in the second quarter, the group posted 683.4 billion won in net, an 11.4 percent decline compared to the first quarter earnings.
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