KB Financial‘s net rises by 68.4% in Q1

KB Financial Group, the nation’s second-largest banking group in terms of assets, said its first quarter net profit increased 68.4 percent on-year, reflecting improved commissions.

The net earnings amounted to 605 billion won ($565 million) in January-March this year, up from 359 billion won in the same period last year, the group said in its performance announcement on Tuesday.

The uptrend was largely attributable to the commission fees that rose to 382.1 billion won, up 21.9 percent on-year, as well as a 31 percent on-year decrease in bad loans, officials said.

But its interest income fell 0.4 percent on-year to 1.5 trillion, as the Bank of Korea’s cut its key rate to a record low of 1.75 percent pulling down the net interest margin.

The group’s flagship KB Kookmin Bank recorded a net income of 476.2 billion won during the corresponding period, up 95.2 percent on-year.



By Bae Hyun-jung

(tellme@heraldcorp.com)