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Finance

KB Financial Group, Inc.

  • 60,700.00 KRW
  • +200.00
  • +0.33%
  • South Korea
    Apr 20, 2018
  • Ticker
    KRX(105560)
  • Prev. close
    60,500
  • Market cap (KRW)
    25,295.80B
  • Market cap (USD)
    23,701.80M
  • Shares
    418.11M

Company Background

KB Financial Group is a major player in South Korea's financial services sector. The holding company presides over KB Kookmin Bank, KB Kookmin Card, KB Investment & Securities and KB Life Insurance. As of the end of December 2014, the consolidated total assets of KB Financial Group ranked alongside those of South Korea's top financial holding companies.

KB Kookmin Bank was formed over time through the merger of a number of other major South Korean financial institutions, especially in 1998 and 2001. It shifted to the financial holding company system in 2008. In terms of assets, KB Financial Group ranks alongside the holding companies of other major institutions such as Shinhan Financial Group and Hana Financial Group. The group was the latest in reorganizing itself into a holding company structure.

KB Financial Group has operations in Japan, the U.S. and Britain as well as in China, India and Southeast Asian nations such as Vietnam. It is expanding its overseas network as corporate clients set up shop abroad. It aims to further broaden overseas operations as it lags behind Hana and other rivals in this regard.

As the South Korean economy remains weak, the Bank of Korea, the central bank, has brought down its benchmark interest rate to a record low of 1.5%. Against this backdrop, KB Financial is faced with the need to create a new earnings model in the business environment, in which new payment settlement systems based on fintech and other information technologies, for example, are expected to catch on.

Business Summary

KB Financial Group, Inc. is a holding company that engages in providing financial services through its subsidiaries. It operates through the following segments: Corporate Banking, Retail Banking, Other Banking Services, Credit Card, Life Insurance, Investment and Securities business. The Corporate Banking business segment provides services such as loans, overdrafts, deposits, credit facilities and other foreign currency activities. The Retail Banking business segment offers services such as private customer current accounts, savings, deposits, consumer loans and mortgage loans. The Other Banking business segment provides services relating to banking business besides corporate banking and retail banking services. The Credit Card business segment offers services such as domestic as well as overseas credit and debit card operations. The Investment and Securities business segment provides services such as investment banking and brokerage. The Life Insurance business segment provides products such as life insurance and wealth management. The company was founded on September 29, 2008 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2017 KRWUSD
Revenue26,413.22B23,363.98M
Gross Profit----
Operating income4,095.44B3,622.65M
Income before tax4,138.42B3,660.66M
Net income3,311.43B2,929.15M
EBITDA----
Diluted EPS8,2577.30
Dividends Per Share1,9201.69
Total Assets438,106.98B409,235.40M
Total liabilities404,062.15B377,434.15M
Total equity34,038.68B31,795.51M
Operating cash flow3,014.12B2,666.16M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 17,239.13B 16,386.69B 15,783.81B 15,616.58B 26,413.22B
Gross Profit -- -- -- -- --
Operating income 2,190.46B 2,154.79B 2,048.25B 1,714.36B 4,095.44B
Income before tax 2,014.68B 1,887.99B 1,961.59B 2,347.81B 4,138.42B
Net income 1,260.50B 1,400.72B 1,698.31B 2,143.74B 3,311.43B
EBITDA -- -- -- -- --
Diluted EPS 3,249 3,611 4,376 5,559 8,257
Dividends Per Share 500 780 980 1,250 1,920
Total Assets 291,838.15B 309,592.00B 330,694.06B 376,823.30B 438,106.98B
Total liabilities 266,185.32B 282,079.32B 301,791.34B 345,561.89B 404,062.15B
Total equity 25,652.83B 27,315.09B 28,680.62B 30,998.04B 34,038.68B
Operating cash flow -1,925.92B 3,895.86B 4,731.78B 6,823.19B 3,014.12B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 15,746.92M 15,566.96M 13,945.71M 13,460.37M 23,363.98M
Gross Profit -- -- -- -- --
Operating income 2,000.85M 2,047.00M 1,809.73M 1,477.66M 3,622.65M
Income before tax 1,840.29M 1,793.55M 1,733.16M 2,023.64M 3,660.66M
Net income 1,151.39M 1,330.65M 1,500.54M 1,847.75M 2,929.15M
EBITDA -- -- -- -- --
Diluted EPS 2.96 3.43 3.86 4.79 7.30
Dividends Per Share 0.45 0.74 0.86 1.07 1.69
Total Assets 276,532.10M 281,664.91M 282,029.80M 311,991.45M 409,235.40M
Total liabilities 252,224.69M 256,634.04M 257,380.34M 286,108.52M 377,434.15M
Total equity 24,307.41M 24,851.10M 24,460.03M 25,664.87M 31,795.51M
Operating cash flow -1,759.21M 3,700.97M 4,180.74M 5,881.09M 2,666.16M

Valuation Measures

Dec 2017
PER7.63
ROA0.81%
ROE10.18%
Operating margin15.50%
Profit margin12.53%

Key executives

  • Chairman & Chief Executive Officer: Jong-Kyoo Yoon
  • Chief Financial Officer & Managing Director: Lee Jae Keun
  • Head-IT, Executive Board member & VP: Gi-Heon Kim
  • President-Executive Board: Ok Chan Kim
  • Senior MD & Head-Information Security Department: Young-Tae Park

Shareholders

  • National Pension Service of Korea (9.6%)
  • KB Financial Group, Inc. (5.0%)
  • Capital Research & Management Co. (Global Investors) (3.2%)
  • Templeton Global Advisors Ltd. (2.9%)
  • POSCO (2.7%)
  • BlackRock Fund Advisors (2.1%)
  • The Vanguard Group, Inc. (2.0%)
  • Orbis Investment Management Ltd. (1.8%)
  • Capital Research & Management Co. (World Investors) (1.4%)
  • FIL Investment Advisors (UK) Ltd. (1.1%)

Contact Details

  • Website:http://www.kbfng.com
  • Address: 84 Namdaemun-ro, Jung-gu, Seoul, 04534, South Korea
  • Phone: +82.2.2073.7114

Related Companies

  • KB Investments Holdings Ltd.
  • KB 13th Securitization Specialty Co. Ltd.
  • KB Savings Bank Co., Ltd.
  • Wise Mobile First Securitization Specialty Co., Ltd.
  • Yehansoul Mutual Savings Bank
  • KB Kookmin Bank
  • KB Kookmin Card Co., Ltd.
  • KB 14th Securitization Specialty Co., Ltd.
  • KB Wise Star CR REIT No.1 Co., Ltd.
  • KB 9th ABS Speciality Co. Ltd.
  • KB 8th ABS Speciality Co. Ltd.
  • KB 1st Mortgage Loan Specialty Co. Ltd.
  • KB 13th ABS Specialtiy Co., Ltd.
  • KB 12th ABS Specialtiy Co. Ltd.
  • KB 11th ABS Specialty Co. Ltd.
  • KB 10th ABS Specialty Co. Ltd.
  • Kamco Value Recreation 3rd ABS Specialty Co. Ltd.
  • Eubora ABS Specialty Co. Ltd.
  • KB Card Co., Ltd.
  • Kb Financial Group, Inc. Employee Stock Ownership Association
  • KB Credit Information Co. Ltd.
  • KB Real Estate Trust Co., Ltd.
  • KB Data Systems Corp.
  • KB Investment Co., Ltd.
  • KB Life Insurance Co., Ltd.
  • KB Asset Management Co., Ltd.
  • KB Insurance Co., Ltd.
  • KB Securities Co., Ltd.

Competitors

  • Asia Cement Co., Ltd.
  • ASIA Holdings CO., Ltd.
Last Updated on 20 Apr, 2018

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