KB Financial Group(US:KB)2024-11-14 11:11Financial Position - Total assets as of September 30, 2024, amounted to W745,334,299 million, an increase from W715,738,152 million as of December 31, 2023, representing a growth of approximately 4.5%[13] - Total liabilities increased to W685,424,283 million from W656,864,842 million, reflecting a rise of about 4.3%[13] - Total equity attributable to shareholders of the Parent Company reached W57,948,499 million, up from W56,929,804 million, indicating an increase of approximately 1.8%[13] - Total equity as of September 30, 2023, was W58,814,335 million, reflecting a decrease of W36,447 million from the previous period[22] - As of September 30, 2024, total equity increased to W59,910,016 million, showing growth from the previous year[22] Income and Revenue - Interest income for Q3 2024 reached W7,637,802 million, a 3% increase from W7,413,308 million in Q3 2023[15] - Net interest income for the nine months ended September 30, 2024, was W9,522,689 million, up 6.3% from W8,958,317 million in the same period of 2023[15] - Fee and commission income for Q3 2024 was W1,342,678 million, representing a 3.8% increase compared to W1,292,826 million in Q3 2023[15] - Net operating income for the nine months ended September 30, 2024, was W7,015,248 million, an increase of 14.3% from W6,139,347 million in the same period of 2023[15] - Profit before income tax expense for Q3 2024 was W2,284,151 million, a 20% increase from W1,903,078 million in Q3 2023[15] - Total comprehensive income for the period in Q3 2024 was W1,333,711 million, compared to W1,523,028 million in Q3 2023[19] - Basic earnings per share for Q3 2024 were W4,129, up from W3,444 in Q3 2023[19] - The company reported a total comprehensive income of W2,586,587 million for the period ending September 30, 2024[22] - Total net operating revenues for the nine-month period ended September 30, 2024, reached W13,367,317 million, a significant increase compared to the previous year[107] Cash Flow and Investments - Cash and due from financial institutions decreased to W26,228,938 million from W29,836,311 million, a decline of about 12.0%[13] - Net cash inflow from operating activities decreased to W5,006,802 million in 2024 from W5,306,326 million in 2023, a decline of about 5.6%[25] - Net cash outflow from investing activities increased to W3,433,037 million in 2024 compared to W2,017,297 million in 2023, representing a significant increase of approximately 70.3%[29] - Net cash outflow from financing activities rose to W5,458,886 million in 2024, up from W1,930,927 million in 2023, indicating an increase of around 182.5%[29] - The Group's acquisition of financial investments totaled W31,072,493 million in 2024, down from W32,901,359 million in 2023, showing a decrease of about 5.6%[29] Credit and Risk Management - Current income tax liabilities increased significantly to W408,170 million from W145,335 million, a rise of approximately 180.5%[13] - The Group's risk management system focuses on credit risk, market risk, liquidity risk, and operational risk, with significant risks quantified using internal capital or Value at Risk (VaR) methods[54] - Credit risk management includes assigning credit ratings to all loan customers, with regular evaluations to manage credit risks effectively[60] - The Group's expected credit losses for loans classified as financial assets at amortized cost totaled W219,893,227 million for corporate loans, with a lifetime not impaired amounting to W25,392,537 million[69] - The provision for credit losses for the nine months ended September 30, 2024, was W1,479,143 million, compared to W1,768,170 million in the same period of 2023[15] Loans and Allowances - Loans measured at amortized cost increased to W466,006,550 million from W444,805,287 million, representing a growth of about 4.5%[65] - The total maximum exposure to credit risk as of September 30, 2024, was W943,783,822 million, compared to W913,028,901 million at the end of 2023, indicating an increase of approximately 3.4%[65] - The allowance for credit losses for due from financial institutions increased to W1,707 million, with a provision of W650 million during the period[164] - The ending balance of 12-month expected credit losses is W426,782,354 million, while lifetime expected credit losses (not impaired) stand at W39,434,776 million and impaired at W5,240,544 million[200] Financial Instruments and Fair Value - The Group's financial statements are prepared based on the historical cost accounting model, with the functional currency being Korean won[45][46] - The Group employs external valuation services alongside internal models to determine the fair value of financial instruments at the end of each reporting period[135] - The total financial assets at fair value through profit or loss amounted to W76,935,965 million, with a significant portion in debt securities at W71,775,639 million[124] - The fair value of financial assets at fair value through other comprehensive income reached W89,451,645 million, primarily driven by debt securities valued at W85,234,138 million[124] - The total financial liabilities designated at fair value through profit or loss was W6,898,320 million, indicating a diverse liability structure[124] Operational Performance - The company anticipates continued growth in its banking and insurance services, supported by strategic market expansions and new product developments[110] - The life insurance segment generated W740,482 million in profit, contributing positively to overall financial performance[108] - The securities segment reported net operating income of W729,851 million, highlighting its importance in the company's portfolio[108] - The Group's banking business includes corporate and retail banking, with a focus on loans and deposit products for various customer segments[106] Dividends and Shareholder Returns - The company paid annual dividends of W564,970 million to shareholders of the Parent Company during the period[22] - Profit attributable to shareholders of the Parent Company was W4,395,289 million, showcasing a solid profit margin[108]