Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
JB Financial achieves record earnings in 2020
JB Financial Group headquarters in Seoul / Courtesy of JB Financial Group
By Lee Min-hyung
By Lee Min-hyung
JB Financial Group reported an annual net profit of 363.5 billion won ($325.7 million) for 2020, up 6.3 percent from the previous year, powered by double-digit growth at its banking subsidiary, the financial holding firm said Tuesday.
Jeonbuk Bank, one of JB's two banking affiliates alongside Kwangju Bank, led the group's stable growth by achieving 124.1 billion won in net profits, up 13.4 percent from 2019; even though the latter's net profit fell 7.5 percent to 160.2 billion won.
In addition, the group also said its profit from non-interest income also jumped 51 percent to 93.9 billion won during the same period.
JB's return on equity (ROE), a key barometer of a bank's profitability, reached 10.1 percent last year, down by 0.1 percentage point. But the figure is still well above the average ROE of major commercial banks here. JB is the only Korean financial holding firm whose ROE exceeds 10 percent.
JB Woori Capital, a credit finance subsidiary, also reported whopping earnings growth of 26 percent with an annual net profit of 103.2 billion won.
But the firm's overseas earnings edged down. Phnom Penh Commercial Bank in Cambodia, which JB took over in 2016, achieved an annual net profit of 20 billion won for 2020, down 3.2 percent.
“JB will continue the growth momentum by generating synergy among affiliates and tightening risk management to deal with the economic uncertainties here and abroad due to the COVID-19 spread,” said Chairman Kim Ki-hong.