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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 2018 KRWUSD
Revenue30,349.97B27,577.90M
Gross Profit----
Operating income4,322.80B3,927.97M
Income before tax4,301.53B3,908.64M
Net income3,061.19B2,781.59M
EBITDA----
Diluted EPS7,6766.97
Dividends Per Share1,9201.74
Total Assets481,146.47B431,212.10M
Total liabilities445,433.44B399,205.44M
Total equity35,703.91B31,998.49M
Operating cash flow10,033.18B9,116.78M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 16,386.69B 15,783.81B 15,616.58B 25,682.57B 30,349.97B
Gross Profit -- -- -- -- --
Operating income 2,154.79B 2,048.25B 1,714.36B 4,095.44B 4,322.80B
Income before tax 1,887.99B 1,961.59B 2,347.81B 4,138.42B 4,301.53B
Net income 1,400.72B 1,698.31B 2,143.74B 3,311.43B 3,061.19B
EBITDA -- -- -- -- --
Diluted EPS 3,611 4,376 5,559 8,257 7,676
Dividends Per Share 780 980 1,250 1,920 1,920
Total Assets 309,592.00B 330,694.06B 376,823.30B 438,106.98B 481,146.47B
Total liabilities 282,079.32B 301,791.34B 345,561.89B 404,062.15B 445,433.44B
Total equity 27,315.09B 28,680.62B 30,998.04B 34,038.68B 35,703.91B
Operating cash flow 3,895.86B 4,731.78B 6,823.19B 3,014.12B 10,033.18B
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 15,566.96M 13,945.71M 13,460.37M 22,717.68M 27,577.90M
Gross Profit -- -- -- -- --
Operating income 2,047.00M 1,809.73M 1,477.66M 3,622.65M 3,927.97M
Income before tax 1,793.55M 1,733.16M 2,023.64M 3,660.66M 3,908.64M
Net income 1,330.65M 1,500.54M 1,847.75M 2,929.15M 2,781.59M
EBITDA -- -- -- -- --
Diluted EPS 3.43 3.86 4.79 7.30 6.97
Dividends Per Share 0.74 0.86 1.07 1.69 1.74
Total Assets 281,664.91M 282,029.80M 311,991.45M 409,235.40M 431,212.10M
Total liabilities 256,634.04M 257,380.34M 286,108.52M 377,434.15M 399,205.44M
Total equity 24,851.10M 24,460.03M 25,664.87M 31,795.51M 31,998.49M
Operating cash flow 3,700.97M 4,180.74M 5,881.09M 2,666.16M 9,116.78M

Valuation Measures

Dec 2018
PER6.02
ROA0.66%
ROE8.77%
Operating margin14.24%
Profit margin10.08%

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 (9.4%)
  • KB Financial Group, Inc. (6.8%)
  • The Vanguard Group, Inc. (2.4%)
  • Templeton Global Advisors Ltd. (2.2%)
  • BlackRock Fund Advisors (2.1%)
  • Hermes Investment Management Ltd. (1.5%)
  • Samsung Asset Management Co., Ltd. (1.5%)
  • Lazard Asset Management LLC (1.4%)
  • Fidelity Management & Research Co. (1.4%)
  • Dimensional Fund Advisors LP (1.1%)

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.
  • KB Data Systems Corp.
  • KB Investment Co., Ltd.
  • KB Capital Co., Ltd.
  • KB Life Insurance Co., Ltd.
  • KB Asset Management Co., Ltd.
  • KB Insurance Co., Ltd.
  • KB Securities Co., Ltd.

Competitors

  • Eugene Investment & Securities Co., Ltd.
  • ASIA CEMENT Co., Ltd.
  • ASIA Holdings CO., Ltd.
  • INITECH Co., Ltd
  • KOREA ASSET IN TRUST CO. LTD
  • Redcap Tour Co., Ltd.
  • SK Networks Co., Ltd.
Last Updated on 13 Dec, 2019

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