KB Financial Q2 net income hits quarterly high on increased interest income

Finance

Published: 23 Jul. 2024, 18:08 Updated: 23 Jul. 2024, 18:29

KB Financial Q2 net income hits quarterly high on increased interest income

KB Financial Group headquarters building in western Seoul [KB FINANCIAL GROUP]

KB Financial Group on Tuesday reported its second quarter net income soared 15.5 percent from a year earlier to reach its highest on a quarterly basis on the back of increased interest income, recovering from burdens related to compensation for a mishap in the sales of equity-linked securities.

Net profit reached 1.73 trillion won ($1.25 billion) in the April-June period, compared to a profit of 1.5 trillion won a year earlier, the company said in a regulatory filing.

Operating income for the quarter rose to 2.3 trillion won from 2.05 trillion won a year earlier, and revenue rose 25.3 percent on year to 19.91 trillion won.

The financial holding company said interest income rose in the second quarter and costs related to equity-linked securities products tracking Hong Kong's H Index were partly booked as profit following a recovery in the index.

In the second quarter, KB Financial reported an interest income of 3.21 trillion won, up 6.5 percent from a year earlier.

Noninterest income fell 3.5 percent on year in the second quarter to 1.24 trillion won.

In the first half of the year, KB Financial logged a net profit of 2.78 trillion won, down 7.5 percent from a year earlier.

The financial holding firm racked up an interest income of 6.36 trillion won in the January-June period, up 9 percent over the cited period.

The group's net interest margin, the difference between interest received and paid, came to 2.08 percent in the second quarter, down 3 basis points from a year earlier.

The financial holding company said it set aside some 553 billion won in reserves, with its total loan-loss reserves reaching 981 billion won.

KB Kookmin Bank's net profit stood at 1.12 trillion won in the second quarter, up 20.4 percent from a year earlier.

Yonhap