Latest news with #KBFinancial
Korea Herald
27-07-2025
- Business
- Korea Herald
Major financial groups post record profits in H1 despite economic slowdown, rate cuts
Four major financial holding companies in South Korea posted record earnings in the first half of this year despite economic uncertainties and declining interest rates, data showed Sunday. The combined net profit of KB Financial, Shinhan Financial, Hana Financial and Woori Financial totaled 10.33 trillion won ($7.47 billion) during the first six months of 2025, marking a 10.5 percent increase from the same period a year earlier, according to their regulatory filings. KB, Shinhan and Hana each posted double-digit on-year growth in net profit, setting new records for first-half earnings. In detail, KB saw its profit surge 23.8 percent on-year in the first half to 3.44 trillion won. Shinhan came in a distant second, reporting 3.04 trillion won in net profit, up 10.6 percent on-year. Hana Financial's net profit advanced 11.2 percent to 2.3 trillion won during the cited period. But Woori posted a decline in the first-half reading, with net profit falling 11.6 percent to 1.55 trillion won. The stellar performance was attributable to an increase in both interest and non-interest income. The four financial groups earned a combined 21.09 trillion won in interest income in the January-June period, despite the Bank of Korea's monetary easing cycle that began late last year. Their non-interest income also rose 7.2 percent on-year to 7.21 trillion won. Officials said that declines in interest rates and the won-US dollar exchange rates led to an overall increase in gains from securities, foreign exchange and derivatives. Higher fees from bank retirement pensions, bancassurance sales commissions and securities brokerage commissions also helped increase theirF non-interest income. The outlook for the second half, however, is not optimistic, as financial authorities have instructed banks to halve their total household loan targets for the remainder of the year amid growing concerns over surging household debt. President Lee Jae Myung has also urged financial institutions to focus more on expanding investments, rather than "clinging to easy interest gains from mortgage loans." The holding companies have announced measures to boost shareholder value, including additional share buybacks. KB Financial said it will buy back and cancel 850 billion won worth of its own stocks, while Shinhan and Hana announced similar measures worth 800 billion won and 200 billion won, respectively. (Yonhap)
Korea Herald
25-07-2025
- Business
- Korea Herald
Seoul shares open tad higher amid US tariff uncertainties
Seoul shares kicked off slightly higher Friday amid uncertainties over tariff negotiations between South Korea and the United States. The benchmark Korea Composite Stock Price Index gained 6.01 points, or 0.19 percent, to 3,196.46 in the first 15 minutes of trading. Overnight, Wall Street closed mixed, with the tech-heavy Nasdaq composite and the S&P 500 up 0.18 percent and 0.07 percent, respectively, while the Dow Jones Industrial Average shed 0.7 percent. Tesla slid 8.2 percent on weaker-than-expected earnings, while artificial intelligence chip giant Nvidia rose 1.73 percent on expectations the company will profit from major tech firms' plan to increase their AI investment. Investors were paying close attention to the ongoing tariff negotiations between Seoul and Washington. Industry Minister Kim Jung-kwan and Trade Minister Yeo Han-koo met with US Commerce Secretary Howard Lutnick on Thursday, and the two sides reaffirmed their commitment to striking a trade deal before the Aug. 1 deadline. Though the "2+2" high-level meeting, originally scheduled for Friday, was postponed, Yeo plans to hold a one-on-one meeting with US Trade Representative Jamieson Greer as part of efforts to make progress in tariff talks. In Seoul, financial shares kicked off particularly strong. KB Financial soared 6.06 percent, Shinhan Financial jumped 3.75 percent, and Hana Financial advanced 3.63 percent. Other big-cap shares were mixed. Chipmaking giant SK hynix rose 1.11 percent, while its rival Samsung Electronics dipped 0.45 percent. Major shipbuilder HD Hyundai Heavy went up 1.67 percent, but its rival Hanwha Ocean dropped 1.35 percent. Leading battery maker LG Energy Solution went down 1.63 percent following a sharp increase the previous session, and steel giant POSCO Holdings decreased 1.05 percent. Major biopharmaceutical firms lost ground, with Samsung Biologics down 1.01 percent and Celltrion down 1.77 percent. The local currency was trading at 1,371.4 won against the US dollar at 9:15 a.m., down 4.2 won from the previous session. (Yonhap)
Korea Herald
08-07-2025
- Business
- Korea Herald
Seoul shares open higher despite US tariff notification, Samsung's weak earnings
Seoul shares opened nearly 1 percent higher Tuesday despite US President Donald Trump's decision to impose 25 percent tariffs on South Korean imports and a sluggish first-quarter earnings guidance report from Samsung Electronics. The benchmark Korea Composite Stock Price Index climbed 28.35 points, or 0.93 percent, to 3,087.82 in the first 15 minutes of trading. Earlier in the day, Trump unveiled a letter addressed to South Korean President Lee Jae Myung, saying that the United States will start imposing 25 percent tariffs on South Korean products on Aug. 1. Also, Samsung Electronics estimated its second-quarter operating profit plunged 55.9 percent from a year earlier due to sluggish chip business and the fallout from US trade policies, missing market expectations. Financial and shipbuilding shares led the overall gains, with KB Financial jumping 2.88 percent and HD Hyundai Heavy Industries adding 2.25 percent. Automotive and internet portal shares also advanced. Top automaker Hyundai Motor rose 1.32 percent, and leading internet portal operator Naver gained 1.17 percent. No. 2 chipmaker SK hynix added 1.66 percent, but market heavyweight Samsung Electronics dropped 0.49 percent. Leading biotech firm Samsung Biologics and top defense systems manufacturer Hanwha Aerospace shed 0.19 percent and 0.75 percent, respectively. The local currency was trading at 1,370.05 won against the US dollar at 9:15 a.m., down 2.25 won from the previous session. (Yonhap)
Miami Herald
29-05-2025
- Automotive
- Miami Herald
KB Financial joins South Korea's top five in market cap
SEOUL, May 29 (UPI) -- South Korea's stock market has been ruled by traditional manufacturing companies, including Samsung Electronics, SK hynix, and Hyundai Motor. However, KB Financial Group has broken into the top five firms by market capitalization this month, nudging past the country's largest automaker, Hyundai Motor, and defense giant Hanwha Aerospace. The financial group's market capitalization climbed to $28.91 billion Monday to overtake Hanwha Aerospace, with $28.63 billion, and Hyundai Motor, with $27.69 billion. Although Hanwha Aerospace reclaimed the No. 5 spot Tuesday, KB rebounded Wednesday. This marks the first time in roughly 15 years that KB Financial has become one of the five most valuable corporations in the Seoul bourse. "Most of all, KB Financial's profitability is outstanding, which has supported its share price since 2024," Hana Securities analyst Choi Jeong-wook told UPI. "Its diversified portfolio is also attractive. Many of its subsidiaries are leaders in their respective businesses. Its non-banking units accounted for some 40% of the total profits last year," he said. KB Financial netted $3.6 billion in profit last year, becoming South Korea's first financial company to reach the milestone. During the first quarter of this year, its bottom line amounted to $1.18 billion, up 62.9% from a year earlier. In the beginning of 2023, KB Financial trailed far behind Hyundai Motor, ranking 18th with a market capitalization of $15.88 billion against the latter's $31.32 billion. Since then, however, KB Financial's share price has nearly doubled to beat Hyundai Motor, which lost more than 10% during the span. The group's flagship unit is KB Kookmin Bank, South Korea's largest lender. Also under its umbrella are KB Kookmin Card, KB Securities, KB Insurance and KB Life Insurance. "Investor sentiment has been buoyed by KB Financial's embrace of the value-up program designed to boost the stock price," NH Investment & Securities analyst Jung Jun-seop said in a phone interview. In addition, the company recently disclosed s stock buyback plan -- a measure that "seems to win the hearts and minds of investors at home and abroad. The stabilizing foreign exchange rate also helps it," he added. The value-up program is the Korean government's initiative aimed at addressing the so-called "Korea Discount," which refers to the tendency of Korean stocks to trade at low valuations despite strong fundamentals. The Seoul administration has tried to encourage enterprises here to strengthen their corporate governance and improve capital allocation to deal with the Korea Discount. KB Financial was recently honored with the top prize in a government-held value-up award ceremony. Last month, the entity canceled 12 million shares, which were valued at $740 million. In his recent report, SK Securities analyst Seol Yong-jin said that KB Financial has enjoyed a premium, thanks to its status as a business bellwether. "KB Financial has demonstrated an advantage over its competitors in terms of foreign investor inflows," he wrote. As of Wednesday, foreign investors' net purchases of KB Financial stood at around $870 million for the month. Still, challenges remain, according to some observers. "Like its smaller competitors, KB Financial has failed to make its presence felt in the global market. The outfit mostly focuses on the domestic market," Seoul-based consultancy Leaders Index CEO Park Ju-gun said. "In addition, KB Financial depends too heavily on interest profits. The lowered key interest rate is feared to weigh on the group at least in the short term," he predicted. The Bank of Korea slashed its benchmark interest rate by 0.25% points to 2.5% Thursday. It was the central bank's fourth cut in seven months since last October. Globally, KB Financial is also recognized as a proactive sponsor of professional golfers, who play on the LPGA Tour. It backs Park In-bee, who topped the podium in the Rio 2016 Summer Olympics. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
29-05-2025
- Automotive
- UPI
KB Financial joins South Korea's top five in market cap
KB Financial's share price nearly doubled since 2024, helping it become one of South Korea's five most valuable companies. Photo courtesy of KB Financial Group SEOUL, May 29 (UPI) -- South Korea's stock market has been ruled by traditional manufacturing companies, including Samsung Electronics, SK hynix, and Hyundai Motor. However, KB Financial Group has broken into the top five firms by market capitalization this month, nudging past the country's largest automaker, Hyundai Motor, and defense giant Hanwha Aerospace. The financial group's market capitalization climbed to $28.91 billion Monday to overtake Hanwha Aerospace, with $28.63 billion, and Hyundai Motor, with $27.69 billion. Although Hanwha Aerospace reclaimed the No. 5 spot Tuesday, KB rebounded Wednesday. This marks the first time in roughly 15 years that KB Financial has become one of the five most valuable corporations in the Seoul bourse. "Most of all, KB Financial's profitability is outstanding, which has supported its share price since 2024," Hana Securities analyst Choi Jeong-wook told UPI. "Its diversified portfolio is also attractive. Many of its subsidiaries are leaders in their respective businesses. Its non-banking units accounted for some 40% of the total profits last year," he said. KB Financial netted $3.6 billion in profit last year, becoming South Korea's first financial company to reach the milestone. During the first quarter of this year, its bottom line amounted to $1.18 billion, up 62.9% from a year earlier. In the beginning of 2023, KB Financial trailed far behind Hyundai Motor, ranking 18th with a market capitalization of $15.88 billion against the latter's $31.32 billion. Since then, however, KB Financial's share price has nearly doubled to beat Hyundai Motor, which lost more than 10% during the span. The group's flagship unit is KB Kookmin Bank, South Korea's largest lender. Also under its umbrella are KB Kookmin Card, KB Securities, KB Insurance and KB Life Insurance. "Investor sentiment has been buoyed by KB Financial's embrace of the value-up program designed to boost the stock price," NH Investment & Securities analyst Jung Jun-seop said in a phone interview. In addition, the company recently disclosed s stock buyback plan -- a measure that "seems to win the hearts and minds of investors at home and abroad. The stabilizing foreign exchange rate also helps it," he added. The value-up program is the Korean government's initiative aimed at addressing the so-called "Korea Discount," which refers to the tendency of Korean stocks to trade at low valuations despite strong fundamentals. The Seoul administration has tried to encourage enterprises here to strengthen their corporate governance and improve capital allocation to deal with the Korea Discount. KB Financial was recently honored with the top prize in a government-held value-up award ceremony. Last month, the entity canceled 12 million shares, which were valued at $740 million. In his recent report, SK Securities analyst Seol Yong-jin said that KB Financial has enjoyed a premium, thanks to its status as a business bellwether. "KB Financial has demonstrated an advantage over its competitors in terms of foreign investor inflows," he wrote. As of Wednesday, foreign investors' net purchases of KB Financial stood at around $870 million for the month. Still, challenges remain, according to some observers. "Like its smaller competitors, KB Financial has failed to make its presence felt in the global market. The outfit mostly focuses on the domestic market," Seoul-based consultancy Leaders Index CEO Park Ju-gun said. "In addition, KB Financial depends too heavily on interest profits. The lowered key interest rate is feared to weigh on the group at least in the short term," he predicted. The Bank of Korea slashed its benchmark interest rate by 0.25% points to 2.5% Thursday. It was the central bank's fourth cut in seven months since last October. Globally, KB Financial is also recognized as a proactive sponsor of professional golfers, who play on the LPGA Tour. It backs Park In-bee, who topped the podium in the Rio 2016 Summer Olympics.
