KB Financial Group Inc. reached a milestone as its net income surpassed 5 trillion won ($3.8 billion) for the first time, fueled by growth in both banking and non-banking operations.
The Seoul-based financial group posted a profit of 5.08 trillion won in 2023, driven by higher interest income from household lending and increased earnings from insurance units. The results mark a significant advance from 2020, when the company first hit the 4 trillion won threshold.
Net interest income climbed 5.3% to 12.8 trillion won, while fee revenue from non-banking businesses grew 4.8% to 3.85 trillion won. Insurance operations emerged as a key profit driver, with KB Insurance and Life Insurance contributing 1.11 trillion won to the bottom line.
The company’s non-banking divisions now account for 40% of total profit, up from 33% in 2022, showcasing the group’s diversification strategy.
In response to the strong performance, KB Financial unveiled plans to return 1.76 trillion won to shareholders. The package includes a 520 billion won stock buyback in the first half of 2024, with additional distributions planned later in the year based on excess capital above its target ratio.
The buyback program signals management’s confidence in the company’s financial strength and commitment to shareholder returns.
