ID :
198090
Fri, 07/29/2011 - 13:59
Auther :
Shortlink :
https://oananews.org//node/198090
The shortlink copeid
KB Financial swings to black in Q2
(ATTN: CORRECTS paras 3, 10; UPDATES info in last three paras)
SEOUL, July 29 (Yonhap) -- KB Financial Group Inc., South Korea's No. 2 financial holding company, said Friday that it returned to profit in the second quarter on improved interest margins and lower loan-loss reserves.
Net profit came to 817.3 billion won (US$776.1 million) in the April-June period, a sharp turnaround from a 217.4 billion won net loss a year earlier, the group said in a regulatory filing.
In the first half, the group posted a record profit of 1.6 trillion won, a four-fold increase from a 397 billion won profit a year earlier.
The second-quarter bottom line, however, was below the consensus of 837.8 billion won in a poll of analysts by Yonhap Infomax, the financial news arm of Yonhap News Agency.
Revenue slipped 3.5 percent on-year to 6.5 trillion won in the second quarter, and KB Financial posted a 1.2 trillion won operating profit, compared with a 291.3 billion won operating loss a year earlier.
Despite the turnaround in the second-quarter bottom line, shares of KB Financial closed 2.42 percent down at 52,500 won on the Seoul bourse.
"The stellar second-quarter performance was backed by a stable asset increase and an improved net interest margin (NIM)," the group said in an e-mailed statement. "Improved asset quality resulted in a smaller amount of money set aside to cover credit losses."
KB Financial's NIM reached 3.07 percent in the second quarter, up 0.01 percentage point from three months earlier.
The group said its flagship Kookmin Bank logged a net profit of 859.9 billion won in the April-June period, up 16.1 percent from the previous quarter. The lender's net income in the first half came to 1.6 trillion won, up from 375.9 billion won a year earlier.
KB Financial said its assets totaled 353.9 trillion won as of the end of June, up from 344.8 trillion won three months earlier.
Meanwhile, the group said it plans to use the proceeds from the sale of Kookmin Bank's stake in KB Financial to strengthen its non-bank business.
"We will prioritize the diversification of our business portfolio by bolstering the non-bank business and push to engage in merger and acquisition activities that can maximize synergy," KB Financial President Lim Young-rok said in a conference call.
Earlier this month, Kookmin Bank sold out its stake in parent KB Financial Group for 1.8 trillion won. The country's top lender had bought a 21 percent stake in KB Financial in September 2008, but was required by banking laws to unload its holdings in the group by the end of September.
SEOUL, July 29 (Yonhap) -- KB Financial Group Inc., South Korea's No. 2 financial holding company, said Friday that it returned to profit in the second quarter on improved interest margins and lower loan-loss reserves.
Net profit came to 817.3 billion won (US$776.1 million) in the April-June period, a sharp turnaround from a 217.4 billion won net loss a year earlier, the group said in a regulatory filing.
In the first half, the group posted a record profit of 1.6 trillion won, a four-fold increase from a 397 billion won profit a year earlier.
The second-quarter bottom line, however, was below the consensus of 837.8 billion won in a poll of analysts by Yonhap Infomax, the financial news arm of Yonhap News Agency.
Revenue slipped 3.5 percent on-year to 6.5 trillion won in the second quarter, and KB Financial posted a 1.2 trillion won operating profit, compared with a 291.3 billion won operating loss a year earlier.
Despite the turnaround in the second-quarter bottom line, shares of KB Financial closed 2.42 percent down at 52,500 won on the Seoul bourse.
"The stellar second-quarter performance was backed by a stable asset increase and an improved net interest margin (NIM)," the group said in an e-mailed statement. "Improved asset quality resulted in a smaller amount of money set aside to cover credit losses."
KB Financial's NIM reached 3.07 percent in the second quarter, up 0.01 percentage point from three months earlier.
The group said its flagship Kookmin Bank logged a net profit of 859.9 billion won in the April-June period, up 16.1 percent from the previous quarter. The lender's net income in the first half came to 1.6 trillion won, up from 375.9 billion won a year earlier.
KB Financial said its assets totaled 353.9 trillion won as of the end of June, up from 344.8 trillion won three months earlier.
Meanwhile, the group said it plans to use the proceeds from the sale of Kookmin Bank's stake in KB Financial to strengthen its non-bank business.
"We will prioritize the diversification of our business portfolio by bolstering the non-bank business and push to engage in merger and acquisition activities that can maximize synergy," KB Financial President Lim Young-rok said in a conference call.
Earlier this month, Kookmin Bank sold out its stake in parent KB Financial Group for 1.8 trillion won. The country's top lender had bought a 21 percent stake in KB Financial in September 2008, but was required by banking laws to unload its holdings in the group by the end of September.
