JB Financial Group (175330) Q3 2024 earnings summary

Executive summary

• Net income for 3Q24 reached KRW193bn, up 15.4% year-over-year, with cumulative 3Q24 net income at KRW563bn, up 14.1% year-over-year.

• Achieved sector-leading profitability with ROE at 14.7% and ROA at 1.18% for 3Q24.

• Total operating income for 3Q24 was KRW564bn, up 6.4% year-over-year, and consolidated operating income was ₩747.8B.

• Cost-to-income ratio improved to a record low of 34.3%; CET1 ratio stable at 12.71%.

• Board approved a 3Q24 dividend payout of KRW105 per share, with a 2023 payout ratio of 28%.

Financial highlights

• Earnings per share (EPS) for 3Q24 rose 15.1% year-over-year, with a four-year CAGR of 17.5%.

• Group's credit cost ratio for 3Q24 was 0.83%, improving by 32bp quarter-over-quarter.

• CET1 ratio for 3Q24 was 12.71%, up from 12.15% in 2023 Q3.

• Non-interest income declined 29.2% quarter-over-quarter due to lower fee income, but was up 59.4% year-over-year.

• Consolidated total assets reached ₩65,517.3B, up from ₩63,404.0B at 2023 year-end.

Outlook and guidance

• Double-digit ROE is expected for 2024, marking six consecutive years of sector-leading returns.

• Group aims to maintain ROE above 13% and CET1 ratio above 12%, targeting a shareholder return ratio of 45% by 2026.

• Plans to continue quarterly dividends and expand share buybacks and cancellations.

• Strategic focus on digital transformation, risk management, and overseas expansion, especially in ASEAN markets.