Investing.com -- KB Financial (KS:105560) reported higher earnings for the first nine months of 2026, supported by stronger fee income, resilient interest earnings and lower credit-loss provisions, as the South Korean financial group continued to improve profitability amid volatile financial markets.
Net profit attributable increased 13.1% year on year to 5.79 trillion won in the January-September period, compared with 5.12 trillion won a year earlier. Return on equity improved to 13.89% from 12.78%, according to the company's third-quarter earnings report.
Net interest income rose 2.9% to 9.99 trillion won, reflecting corporate-led loan growth and the group's management of interest margins. Net fee and commission income climbed 38.5% to 4.09 trillion won, supported by stronger securities-related fees and trust income.
Total net non-interest income increased 27.3% to 4.76 trillion won, while provisions for credit losses declined 5.9% to 1.58 trillion won, reflecting the group's conservative risk-management approach.
However, third-quarter profit attributable fell 4.3% from the previous quarter to 1.91 trillion won. Net interest income increased 11.6% sequentially to 3.51 trillion won, but net fee and commission income declined 29.7% to 1.13 trillion won. Other operating profit also fell sharply to 3 billion won from 376.4 billion won in the second quarter.
Operating efficiency continued to improve, with the group's cumulative cost-to-income ratio narrowing to 36.4% from 37.2% a year earlier. The group's common equity tier 1 capital ratio stood at 13.80% at the end of September, up five basis points from June.
The company highlighted the group's diversified earnings base across banking and non-bank businesses, with non-bank operations accounting for 40% of cumulative net profit.
Original Article
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