KB Financial Group reports record profits for 2023

KB Financial Group reported record 2023 profits, despite falling short of analysts' expectations.

KB Kookmin Bank headquarters in western Seoul [YONHAP]

KB Financial Group reported a record 4.63 trillion won ($3.5 billion) in net profit last year, up 11.5 percent on year, the company reported Wednesday.

Annual net profit fell short of the 4.8 trillion won FnGuide consensus.

KB reported 261.5 billion won in net profit in the fourth quarter, up 128 percent on year but down 81 percent from the previous quarter. The company cited seasonal and one-off expenses, including the voluntary retirement of employees, which involves hefty compensation, and the securing of provisions to prepare for risks associated with real estate project financing.

Operating income came to 6.44 trillion won, up 21.67 percent on year, on revenue that more than doubled to reach 18.48 trillion won.

The flagship KB Kookmin Bank reported 3.26 trillion won in net profit last year, up 8.9 percent on year, bolstered by the growth of corporate loans centered on conglomerates.

KB Securities registered 389.6 billion won in net profit last year, an on-year increase of 107.5 percent. Major investment banking deals and increased profitability from wealth management products contributed to the surge.

KB Insurance’s net profit jumped 35.1 percent on year to 557.2 billion won last year, while that of KB Life Insurance soared 88.7 percent to 256.2 billion won over the same period. KB Kookmin Card's net profit slid 7.3 percent to 351.1 billion won on year in 2023 due to higher borrowing costs and a rise in delinquency rates.

KB Financial Group said it will raise the dividend rate for 2023 by 4 percent from a year earlier to 3,060 apiece. The board agreed to purchase and incinerate 320 billion won worth of treasury stock for the dividend payout, it said.

The company's stock closed up 2.54 percent on Wednesday at 64,700 won.

BY JIN MIN-JI [jijn.minji@joongang.co.kr]