KB Financial Group, Inc.

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See more articles on 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	KRW	USD
Revenue	33,866.97B	29,040.84M
Gross Profit	--	--
Operating income	4,576.36B	3,924.22M
Income before tax	4,533.98B	3,887.88M
Net income	3,305.31B	2,834.29M
EBITDA	--	--
Diluted EPS	8,388.65	7.19
Dividends Per Share	2,210	1.89
Total Assets	520,249.70B	449,867.88M
Total liabilities	481,529.58B	416,386.00M
Total equity	38,134.71B	32,975.67M
Operating cash flow	4,146.19B	3,555.34M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 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 2015	Dec 2016	Dec 2017	Dec 2018	Dec 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
PER	5.63
ROA	0.66%
ROE	8.95%
Operating margin	13.51%
Profit margin	9.75%

Key executives

Chairman & Chief Executive Officer: Jong-Kyoo Yoon
Chief Financial Officer & Vice President: Ki-Hwan Kim
Chief Information Technology Officer: Woo-Yeol Lee
Managing Director & Compliance Officer: Chan-Il Park
Chief Human Resources Officer & Vice President: Pil-Gyu Lim

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. (1.7%)
Samsung Asset Management Co., Ltd. (1.5%)
Hermes Investment Management Ltd. (1.5%)
Fidelity Management & Research Co. LLC (1.3%)
Lazard Asset Management LLC (1.1%)
Norges Bank Investment Management (1.0%)

Contact Details

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

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Competitors

ASIA CEMENT Co., Ltd.
INITECH Co., Ltd
Redcap Tour Co., Ltd.

Last Updated on 10 Jul, 2020