SEOUL, South Korea--(BUSINESS WIRE)--JB Financial Group (KRX:175330) reported full-year 2017 consolidated net income of KRW264.4 billion, up by 31.0% compared to previous year. In terms of controlling interest net income, the Group reported KRW185.1 billion, up by 29.7% year over year, continuing its double-digit bottom-line growth.
Despite incurrence of seasonal expense items for the quarter such as early retirement and nonperforming loan charge-offs, the Group’s net income expanded significantly on the back of strong loan growth and asset quality improvement. The Group’s banking arms, Jeonbuk Bank (consolidating Phnom Penh Commercial Bank in Cambodia) and Kwangju Bank, reported their 2017 consolidated net income of KRW80.2 billion and KRW134.2 billion, respectively, up by 41.2% and 29.9% year over year, respectively. The nonbanking affiliate, JB Woori Capital, recorded its net income of KRW71.2 billion, continuing the stable results for two consecutive years.
Sound net income growth reflects the Group’s enhanced profit generation capability, attributed by strong asset base growth and improved credit quality. Jeonbuk Bank and Kwangju Bank exhibited continued healthy growth in net interest income, predominantly driven by expansion of interest earning assets and rise in net interest margin. In addition, improved credit quality resulted in downward stabilization in credit cost ratio. Of note, the Group’s 2017E preliminary Common Equity Tier 1 Ratio recorded 8.57%, supported by downsized risk weighted assets and increase in profit generation capability. The figure surpasses the Group’s target proposed in the beginning of 2017.
The Group’s annual net interest margin was 2.46%, expanding by 7 basis points from 2016 (Banks NIM: 2.26%). Efficiency was also enhanced with cost-income ratio standing at 55.10%. The Group’s overall credit quality indicators continued to post sturdy improvements, with delinquency and NPL ratio both decreasing by 17 and 20 basis points, respectively, to record 0.87% and 0.96%, respectively, while credit cost ratio also declined by 12 basis points to mark 0.38%. As a result, the Group’s ROA and ROE reached 0.56% and 8.64% in 2017.
JB Financial Group was able to build up its stable profit generation base in 2017, contributed by preemptive risk management, active cost reduction and effective asset portfolio rebalancing. The Group will continue to strengthen its competitiveness as a ‘Digital Financial Group’ while making every effort to prepare for the evolving regulatory environment.
The FY2017 business result materials are available on English page of www.jbfg.com, under Investor Relations, Business Result.