JB Financial Group posts record quarterly profit in Q2

JB Financial Group posted record earnings in the second quarter, with strong results from non-banking affiliate JB Woori Capital helping the group achieve an all-time high in first-half net profit as well. Analysts credited stable earnings from non-banking subsidiaries as the key driver of the group's performance.

JB Financial Group said Thursday that its net profit attributable to controlling shareholders reached 219.6 billion won ($148 million) in the second quarter, up 5.7 percent from the same period last year — the highest quarterly net profit in the group's history. Cumulative first-half net profit attributable to controlling shareholders also hit a record 385.7 billion won, an all-time high for any six-month period.

Key profitability indicators remained among the best in the industry. Return on equity stood at 13.0 percent and return on assets at 1.07 percent for the quarter. The cost-to-income ratio came in at 36.9 percent, supported by solid profit growth and cost efficiencies, while the common equity tier 1 ratio — on a preliminary basis — held at 12.52 percent, reflecting stable capital adequacy.

Among subsidiaries, Jeonbuk Bank recorded net profit for the period of 54.6 billion won and Gwangju Bank posted 85.6 billion won. JB Woori Capital was the standout performer, generating 104.1 billion won in net profit and leading the group's overall results. JB Asset Management and JB Investment recorded net profit of 400 million won and 2.3 billion won, respectively, while PPC Bank (Phnom Penh Commercial Bank), the group's Cambodian subsidiary, contributed 14 billion won.

The board of JB Financial Group also approved Thursday a quarterly cash dividend of 314 won per common share — a record for a quarterly payout — along with a 100 billion won share buyback and cancellation program as part of its shareholder return policy. "We will continue to pursue our shareholder return policy on the back of a stable capital ratio, and work to enhance corporate value," the company said.