KB Financial Group announced its Q3 2025 business results on Oct. 30.
Despite declining interest rates, KB Financial Group’s third-quarter net income reached 1.686 trillion won, driven by a diversified profit portfolio across banking and non-banking businesses.
Meanwhile, KB Financial Group’s cumulative net income for the third quarter added up to 5.1217 trillion won, with a Q3 ROE of 12.78%.
Notably, the financial group’s core earnings continued to perform well, with net commission income increasing by 3.5% year on year, showing stable performances.
“Amidst long external uncertainties including interest rate and exchange rate volatility, KB Financial Group is building a balanced profit structure based on a diversified non-banking portfolio,” a KB official said.
“We will proactively respond to the transition period in which the center of the Korean economy is shifting from the real estate market to the capital market and strive to qualitatively improve our profit structure.”
KB Financial Group’s Common Equity Tier 1 (CET1) ratio and BIS capital adequacy ratio as of the end of September stood at 13.83% and 16.28%, respectively, thanks to efficient capital allocation and risk-weighted asset management, keeping capital adequacy stable.
KB Financial Group’s cost-to-income Ratio (CIR) remained stable at below 40%, reaching 37.2% cumulatively through the third quarter.
This was driven by strong core earnings and ongoing group-wide cost efficiency efforts.
The financial group’s net interest margin (NIM) for the third quarter remained at 1.96%, the same level as the previous quarter, while KB Kookmin Bank’s NIM sat at 1.74%.
The bank effectively managed funding costs by expanding core deposits, maintaining a stable NIM even amidst a falling interest rate.
KB Financial Group’s cumulative ROA and ROE were 0.88% and 12.78%, respectively, during the third quarter, demonstrating a clear recovery in profitability and capital efficiency compared to the same period of 2024.
Signing MOU to Build Collaborative Model with Hyundai Department Store Group
On Oct. 31, KB Financial Group and Hyundai Department Store Group signed a strategic MOU on customer experience innovation and pledged to build a collaborative model for financial and retail synergies at “KB GOLD & WISE the FIRST Apgujeong,” a premium asset management center in Apgujeong-dong, Gangnam-gu, Seoul.
Through this MOU, KB Financial Group and Hyundai Department Store will pursue practical collaboration centered on customer values, including expanding their customer base and strengthening customer touch points, launching affiliated products and services, and collaborating on ESG-based social contribution initiatives.
By combining premium brand values encompassing finance and retail, the two companies aim to provide customers with an advanced experience that encompasses asset and lifestyle management.
They will introduce products and services that enhance customer convenience and satisfaction across a variety of areas including a dedicated account that combines Hyundai Department Store’s shopping benefits with KB Financial Group’s high-interest rates, a simple payment service utilizing KB Financial Group’s platform including KB Star Banking and a service that combined point programs of both companies.
Furthermore, KB Financial Group will offer financial services specifically for Hyundai Department Store’s VIP customers through “KB GOLD & WISE the FIRST,” a premium comprehensive asset management center where the group’s top experts provide customer-centric, customized asset management services.
Hyundai Department Store will provide “KB GOLD & WISE the FIRST” to customers with shopping services and benefits, such as personal shopper assistance, when they visit Hyundai Department Store.
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