South Korea’s JB Financial Group Co. reported 18.7 percent on-year rise in its net profit over the July to September period, thanks to expanded synergy of its lending affiliates each showing sound performance.
According to its regulatory filing on Sunday, its net profit on a consolidated basis surged 18.7 percent in the third quarter from the same period last year to 99.1 billion won ($88.4 million). Its operating profit jumped 17.1 percent to 126.6 billion won over the same period and sales grew 6.3 percent to 622.0 billion won.
Shares of JB Financial Group closed Monday at 5,690 won, unchanged from the previous session.
For the January to September period, its net income amounted to 285.5 billion won, up 18.2 percent against the same period last year. In just three quarters, the group is near to achieving its net income target of 288 billion won for full 2018.
JB Financial Group attributed the solid performance to its subsidiaries` outstanding earnings which have been led by their business cooperation and diversification.
Its flagship lender Jeonbuk Bank raked in 87.3 billion won in net profit during the Jan-Sep period, soaring 51.4 percent on year. It was the largest-ever income over the period. Kwangju Bank saw its net profit grow 10.7 percent to 141.4 billion won, while net income of JB Woori Capital also rose 13.4 percent to 68.6 billion won.
“The sound result reflected the outstanding improvement in net interest margin (up 6 basis points from the last quarter) and downward stabilizing credit costs,” the group said. “Against the backdrop of the group’s commitment to strengthen its capital adequacy and asset quality, the overall risk-return profile has leveled up.”
JB Financial Group’s return on equity reached 11.1 percent and its return on assets 0.8 percent as of the third quarter. Thanks to the preemptive risk management, its non-performing loan ratio reached 0.92 percent and delinquency rate 0.93 percent. Credit cost ratio of banking division amounted to 0.30 percent.
By Park Dong-min and Choi Mira
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]