SEOUL, Oct. 22 (Yonhap) — KB Financial Group, South Korea’s biggest retail bank, said Thursday its third-quarter net profit jumped 27 percent from a year earlier on increased interest and commissions income.
Net profit for the three months ending in September rose to 1.194 trillion won (US$1.05 billion) from 940.69 billion won in the same period of last year, the company said in a statement.
“Increased loans for home purchases and rents resulted in higher interest income, and commissions involving the company’s sale of funds also helped the quarterly results,” a company spokesman said over the phone.
Operating profit climbed 14 percent to 1.42 trillion won in the third quarter from 1.25 trillion won over the cited period. But revenue fell 19 percent to 10.53 trillion won from 13.01 trillion won during the same period.
“Revenue declined as the group’s insurance business performed poorly due to high loss ratios stemming from a series of typhoons and heavy rains this summer,” the spokesman said.
From January to September, net profit rose 5.3 percent to 2.93 trillion won from 2.78 trillion won a year earlier.
Interest income rose 4 percent on-year to 7.14 trillion won in the first three quarters, while fund-related commissions jumped 26 percent to 2.17 trillion won, the statement said.
Operating profit climbed 3.5 percent to 3.85 trillion won in the first nine months from 3.72 trillion won a year ago. Revenue was up 6.8 percent to 40.53 trillion won from 37.94 trillion won during the cited period.
KB Financial Group, which has 13 affiliates, such as KB Kookmin Bank, KB Securities Co., and KB Insurance Co., under its wing, had 605.5 trillion won in overall assets and a BIS capital adequacy ratio of 14.69 percent at the end of the third quarter, the statement said.