JB Financial Group (175330) Q2 2024 earnings summary

Executive summary

• Net income for 2Q24 reached KRW197bn, up 21.0% year-over-year, with 1H24 net income at KRW370.1bn, the highest half-year result in company history, up 13.5% year-over-year.

• ROE for 1H24 was 14.7%, maintaining sector-leading profitability for six consecutive years.

• Total operating income for 2Q24 was KRW587bn, up 15.7% year-over-year, driven by stable top-line growth and improved cost efficiency.

• Cost-to-income ratio for 1H24 hit a historic low at 34.1%.

• Board approved a 2Q24 dividend of KRW105 per share and a KRW30bn share buyback, with ongoing share buyback and cancellation programs.

Financial highlights

• 2Q24 net income attributable to controlling interest: KRW197bn (+21.0% YoY); 1H24: KRW370.1bn (+13.5% YoY), marking a record half-year.

• EPS for 1H24 rose 14.3% YoY, supported by improved earnings and treasury share cancellation.

• Group's non-interest income surged 95.5% YoY in 2Q24, mainly from securities gains.

• Group's total assets at 2Q24: KRW65.7tn (+8.1% YoY); total loans: KRW49.5tn (+7.1% YoY).

• Major subsidiaries contributed strong dividends: Gwangju Bank (KRW60.3bn), JB Woori Capital (KRW56.9bn), Jeonbuk Bank (KRW93.6bn).

Outlook and guidance

• High likelihood of achieving double-digit ROE for the sixth consecutive year.

• Plans to maintain industry-leading profitability and stable capital ratios.

• Focus on risk management, digital transformation, and global network expansion for sustainable growth.

• Strategic investments in fintech and digital platforms to drive future growth.

• Continued focus on stable top-line growth and cost efficiency improvements.