KB Financial Group announced via internet and mobile live broadcasts on April 24 that it posted 1,679.3 billion won in net profit with an ROE of 13.04 percent in the first quarter of 2025.
Despite a decline in interest income, the financial group showed favorable performances thanks to the reversal of the effects of provisions for ELS losses recorded in the first quarter of 2024 and the overall expansion of non-banking affiliates’ profits based on the financial group’s strong balanced business portfolio.
“Although KB Financial Group’s interest income decreased due to a decline in the market interest rate, its interest income remained at a similar level to the previous quarter due to the expansion of core deposit inflows,” a KB financial Group official said about the financial group’s first-quarter 2025 results.
“The complementary performances of KB Financial Group’s banking and non-banking affiliates in a tough business environment elevated an increase in the proportion of the non-banking segment in the financial group’s profits to 42 percent.”
In a meeting held prior to the earnings announcement, KB Financial Group’s Board of Directors (BOD) resolved to pay a cash dividend of 912 won per share and to repurchase and retire 300 billion won worth of treasury shares.
They also disclosed the status of the implementation of a corporate value-up plan announced through an electronic disclosure in October 2024.
The BOD members mentioned a steady increase in the value of the financial group’s shares and market capitalization, thanks to efforts for the implementation of the value-up plan to enhance shareholder and corporate value, and the financial group’s vision to play leading roles as a model company in the Korean financial market through capital ratio and profitability management, a continuous governance improvement and ESG and IR activities.
Among key management indicators announced on the same day, KB Financial Group’s cost-to-income ratio (CIR), a measure of cost efficiency, showed a clear downward trend for stabilization to a record low of 35.3 percent, driven by the solid growth of its core profits and its steady efforts for cost rationalization across the financial group.
KB Financial Group’s common equity tier 1 (CET1) ratio and BIS capital adequacy ratio stood at 13.67 percent and 16.57 percent, respectively at the end of the first quarter on the strength of efficient capital allocation and stable risk-weighted asset management.
At the same time, the financial group maintained its capital adequacy at the highest level in the Korean financial industry.
KB Financial Group’s ROA and ROE reached 0.90 percent and 13.04 percent, respectively, in the first quarter, showing a clear recovery in its profitability and capital efficiency compared to a year before.
Meanwhile, KB Financial Group continues to expand its social value-up activities to practice compassionate finance.
The financial group communicates with customers, shareholders and investors, and local community members by calculating the monetary value of the impacts of ESG management activities on the environment and society in both the financial and non-financial sectors.
In the first quarter of 2025, KB Financial Group announced that it created a total of 784.8 billion won in social value with “caring” and “win-win” front and center.
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