JB Financial Group (175330) Q1 2026 earnings summary

Executive summary

• Net income for 1Q26 reached KRW166.1bn, up 2.1% year-over-year, driven by higher interest income despite increased ERP expenses and lower securities gains at banks.

• Recurring core profit rose 8.4% year-over-year to KRW548bn, with a 4-year CAGR of 6.9%.

• ROE was 11.2% and ROA 0.94%, maintaining double-digit profitability.

• Shareholder returns enhanced with a quarterly dividend of KRW311 per share, up 94.4% year-over-year.

• Cost-income ratio was 39.8%.

Financial highlights

• Total operating income for 1Q26 was KRW574.8bn, up 2.3% year-over-year.

• Interest income increased 8.5% year-over-year to KRW533.2bn, while non-interest income dropped 40.8% year-over-year to KRW41.6bn due to lower securities-related gains.

• SG&A expenses rose 11.0% year-over-year to KRW229bn, mainly due to ERP expenses.

• Q1 2026 consolidated revenue: KRW1,215.1bn; operating profit: KRW221.3bn.

• Dividend payout ratio: 34.7% for 2025; Q1 2026 cash dividend per share: KRW311.

Outlook and guidance

• 1Q26 net income exceeded the annual plan by 10%, supporting the annual guidance of KRW750bn.

• The group aims for at least 10% growth in total annual dividends compared to the previous year.

• Targeting a 50% total shareholder return for 2026, with sustainable dividend policy and capital return via share buybacks.

• Focus on stable growth, risk management, and digital transformation amid uncertain macroeconomic conditions.