Bulletin: KB Financial Group's Diverse Businesses Boost Resilience

HONG KONG (S&P Global Ratings) Feb. 7, 2024--KB Financial Group Inc.'s (KBFG) diversified business portfolio will likely defend it against external pressures. Preliminary results announced today underscore Korea-based KBFG's (A/Stable/A-1) solid profitability across banking and nonbanking operations. The group reported a return on average assets of about 0.66% in 2023, higher than 0.61% in 2022, benefitting from a recovery of noninterest income and the expansion of net interest margin. The overall performance of nonbanking operations improved, supported by better profitability at the group's insurance and brokerage subsidiaries that more than offset weaker earnings by the credit card and leasing finance subsidiaries. KBFG has a more diversified structure across banking and nonbanking businesses than other domestic peer groups, in our view.

...February 7, 2024 HONG KONG (S&P Global Ratings) Feb. 7, 2024--KB Financial Group Inc.'s (KBFG) diversified business portfolio will likely defend it against external pressures. Preliminary results announced today underscore Korea-based KBFG's (A/Stable/A-1) solid profitability across banking and nonbanking operations. The group reported a return on average assets of about 0.66% in 2023, higher than 0.61% in 2022, benefitting from a recovery of noninterest income and the expansion of net interest margin. The overall performance of nonbanking operations improved, supported by better profitability at the group's insurance and brokerage subsidiaries that more than offset weaker earnings by the credit card and leasing finance subsidiaries. KBFG has a more diversified structure across banking and nonbanking businesses than other domestic peer groups, in our view. KBFG's main operating subsidiary, Kookmin Bank (A+/Stable/A-1), is the largest bank in Korea, while the group's nonbanking businesses...

Bulletin