KB Financial Group posts strong Q2 profits

A KB Kookmin branch in Yeouido, western Seoul [YONHAP]

KB Financial Group beat the market consensus in the second quarter to post sound improvements in its profits.

The financial firm reported a 1.5 trillion-won ($1.18 billion) net profit in the April-June period, up 23.9 percent on year, according to its earnings released Tuesday. The figure beat the market consensus of 1.34 trillion won, compiled by FnGuide, by 12 percent.

Two consecutive 1.5 trillion-won net profits brought KB’s first-half net profit to 3 trillion won, up 12.2 percent from the first six months of last year.

The company cited balanced growth in interest profit, which are profits derived from interest charges, and non-interest profit as the engine driving its consensus-beating earnings.

Interest profit in the first half jumped 5.2 percent on year to 5.76 trillion won, while non-interest profit soared 105.5 percent to 2.90 trillion won.

“The group’s solid fundamentals and profit stamina were reaffirmed despite a challenging business environment amid the slowing economy and spreading uncertainties in the financial market,” KB said in a statement.

“Interest profit gains in the second half will be limited due to a downward pressure in net interest margins and weaker loan growth,” it added, pledging to pursue steady profit increases through the year based on quality growths in blue-chip assets, non-banking sectors and non-interest sectors.

KB Financial Group’s board set the company’s dividend per share at 510 won for the second quarter and announced a share buyback worth 300 billion won.

Net profit at KB Kookmin rose 23.7 percent on year to 927 billion won for the quarter. The first-half net profit reached 1.86 trillion won.

The quarterly net profit at KB Securities surged 57.6 percent to 110 billion won, and the net profit between the January-June period amounted to 250 billion won on increased trading volume.

BY SOHN DONG-JOO [sohn.dongjoo@joongang.co.kr]