JB Financial Group (175330) Q4 2024 earnings summary

Executive summary

• Achieved record net income of KRW678bn in 2024, up 15.6% year-over-year, surpassing guidance by 3.4%.

• Maintained sector-leading profitability with ROE at 13.0% and ROA at 1.06% for 2024.

• Total operating income rose 9.9% year-over-year to KRW2.21tn, with a four-year CAGR of 13.1%.

• Cost-to-income ratio reached a historic low of 37.5%, reflecting improved cost efficiency.

• EPS increased 16.6% year-over-year, supported by earnings growth and treasury share cancellation.

Financial highlights

• Net income for 4Q24 was KRW114bn, up 23.5% year-over-year.

• Group's non-interest income surged 121.0% year-over-year, driven by securities gains and base effect.

• Group NIM declined by 5bp quarter-over-quarter to 2.59% due to lower market rates.

• Group's credit cost ratio was 0.93%, up 2bp year-over-year, reflecting conservative provisioning.

• CET1 ratio improved to 12.20%, up 5bp year-over-year, supporting loss absorption and shareholder returns.

Outlook and guidance

• 2025 net income guidance set at KRW705bn, a 4.1% increase year-over-year.

• Targeting a credit cost ratio of 0.86% for 2025, down 7bp year-over-year.

• Continued focus on profitability-oriented growth and stable capital ratios.