JB Financial Group (175330) Q1 2025 earnings summary

Executive summary

• Net income attributable to controlling interest for 1Q25 was KRW163bn, down 6.0% year-over-year due to extraordinary items such as additional provisioning and ERP expenses; excluding these, net income would have increased 1.6% YoY.

• Group ROE and ROA for 1Q25 were 11.6% and 0.99%, respectively, maintaining sector-leading profitability.

• Cost-to-income ratio improved to 36.7% due to top-line growth and cost control.

• CET1 ratio at 12.28%, reflecting strong capital adequacy.

Financial highlights

• Total operating income for 1Q25 was KRW561.6bn, up 5.5% YoY; interest income was KRW491.4bn, down 1.0% YoY.

• Non-interest income surged 97.3% YoY to KRW70.3bn, mainly from securities gains.

• SG&A expenses increased 3.9% YoY to KRW206.3bn; cost-to-income ratio improved to 36.7%.

• EPS for 1Q25 was KRW837; book value per share reached KRW26,297.

• Q1 2025 consolidated revenue: KRW1,122.9bn; operating profit: KRW217.5bn.

Outlook and guidance

• Double-digit ROE is expected for the seventh consecutive year, supported by stable growth and cost control.

• 1Q25 dividend set at KRW160 per share; share buyback of KRW50bn resolved in March 2025.

• Focus on stable growth and profitability through risk management and synergy among subsidiaries.

• Continued expansion in Southeast Asia and digital transformation initiatives.

• Targeting ROE above 13% and shareholder return ratio of 45% by 2026.