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Finance

KB Financial Group, Inc.

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 2019 KRWUSD
Revenue33,866.97B29,040.84M
Gross Profit----
Operating income4,576.36B3,924.22M
Income before tax4,533.98B3,887.88M
Net income3,305.31B2,834.29M
EBITDA----
Diluted EPS8,388.657.19
Dividends Per Share2,2101.89
Total Assets520,249.70B449,867.88M
Total liabilities481,529.58B416,386.00M
Total equity38,134.71B32,975.67M
Operating cash flow4,146.19B3,555.34M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 15,783.81B 15,616.58B 25,682.57B 30,349.97B 33,866.97B
Gross Profit -- -- -- -- --
Operating income 2,048.25B 1,714.36B 4,095.44B 4,322.80B 4,576.36B
Income before tax 1,961.59B 2,347.81B 4,138.42B 4,301.53B 4,533.98B
Net income 1,698.31B 2,143.74B 3,311.43B 3,061.19B 3,305.31B
EBITDA -- -- -- -- --
Diluted EPS 4,376 5,559 8,257 7,676 8,388.65
Dividends Per Share 980 1,250 1,920 1,920 2,210
Total Assets 330,694.06B 376,823.30B 438,106.98B 481,146.47B 520,249.70B
Total liabilities 301,791.34B 345,561.89B 404,062.15B 445,433.44B 481,529.58B
Total equity 28,680.62B 30,998.04B 34,038.68B 35,703.91B 38,134.71B
Operating cash flow 4,731.78B 6,823.19B 3,014.12B 10,033.18B 4,146.19B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 13,945.71M 13,460.37M 22,717.68M 27,577.90M 29,040.84M
Gross Profit -- -- -- -- --
Operating income 1,809.73M 1,477.66M 3,622.65M 3,927.97M 3,924.22M
Income before tax 1,733.16M 2,023.64M 3,660.66M 3,908.64M 3,887.88M
Net income 1,500.54M 1,847.75M 2,929.15M 2,781.59M 2,834.29M
EBITDA -- -- -- -- --
Diluted EPS 3.86 4.79 7.30 6.97 7.19
Dividends Per Share 0.86 1.07 1.69 1.74 1.89
Total Assets 282,029.80M 311,991.45M 409,235.40M 431,212.10M 449,867.88M
Total liabilities 257,380.34M 286,108.52M 377,434.15M 399,205.44M 416,386.00M
Total equity 24,460.03M 25,664.87M 31,795.51M 31,998.49M 32,975.67M
Operating cash flow 4,180.74M 5,881.09M 2,666.16M 9,116.78M 3,555.34M

Valuation Measures

Dec 2019
PER5.63
ROA0.66%
ROE8.95%
Operating margin13.51%
Profit margin9.75%

Key executives

  • Chairman & Chief Executive Officer: Jong-Kyoo Yoon
  • Chief Financial Officer & Senior Executive VP: Ki-Hwan Kim
  • Chief Information Technology Officer: Woo Yeul Lee
  • Chief Information Technology Officer: Woo-Yeol Lee
  • Managing Director & Compliance Officer: Chan-Il Park

Shareholders

  • National Pension Service of Korea (9.9%)
  • KB Financial Group, Inc. (5.0%)
  • The Vanguard Group, Inc. (2.5%)
  • BlackRock Fund Advisors (2.1%)
  • Templeton Global Advisors Ltd. (1.4%)
  • Fidelity Management & Research Co. LLC (1.3%)
  • Hermes Investment Management Ltd. (1.3%)
  • Lazard Asset Management LLC (1.0%)
  • Norges Bank Investment Management (1.0%)
  • Dimensional Fund Advisors LP (0.9%)

Contact Details

  • Website:http://www.kbfng.com
  • Address: 26 Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul, 07331, South Korea
  • Phone: +82.2.2073.7114

Related Companies

  • Silver Investment 2nd Co., Ltd.
  • 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.
  • Prudential Life Insurance Company of Korea Ltd.
  • KB Data Systems Corp.
  • KB Investment Co., Ltd.
  • PT Bank Bukopin Tbk
  • KB Capital Co., Ltd.
  • KB Life Insurance Co., Ltd.
  • KB Asset Management Co., Ltd.

Competitors

  • ASIA CEMENT Co., Ltd.
  • CLIO Cosmetics co., Ltd
  • Redcap Tour Co., Ltd.
Last Updated on 20 Oct, 2020

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