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.

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

• Total operating income rose 5.5% YoY to KRW562bn, driven by stable top-line growth and cost efficiency.

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%.

• Provisions rose 30.5% YoY to KRW137.8bn, reflecting conservative risk management.

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

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.