KTB Group aspires to grow into major financial group

KTB Investment & Securities headquarters on Yeouido, Seoul / Courtesy of KTB Investment & Securities

KTB expands its business portfolio to include retail with savings bank's acquisition

By Anna J. Park

KTB Group has been focusing on boosting its corporate value through aggressive expansion, as evidenced by its recent acquisition of Eugene Savings Bank.

KTB Group's acquisition of Eugene Savings Bank was confirmed at a board meeting last week. The only step left before the acquisition is finalized is approval by financial authorities. KTB Group paid 200.3 billion won ($174 million) to acquire a 51 percent stake in Eugene SB Holdings, which owns 100 percent of Eugene Savings Bank.

Part of the money needed for the acquisition will be covered by the capital that the group raised during a recent round of pre-IPO investment in KTB Network ― its venture capital arm that is scheduled to make its KOSDAQ debut later this year.

Late last month, KTB Network sold about 35 percent of its stocks, or 28 million shares, for 154 billion won to around 10 institutional investors, ranging from asset managers to securities firms. With the pre-IPO investment, the corporate value of the prestigious venture firm with the longest history of trailblazing the country's venture capital sector was estimated at around 700 billion won.

KTB Investment & Securities ― a major shareholder of KTB Network which previously owned a 100 percent stake ― said it plans to use the capital secured from the pre-IPO investment to expand the financial firm's future business.

KTB Asset Management, which has its strength in overseas alternative investments, announced recently it will create a global research department. The previous research team that had been under the firm's equity department will now handle the new global research operation. Song Jong-ho, head of research at NH-Amundi Asset Management, will lead the new global research as well as equity departments.

Expectations over KTB Group's further growth have stoked the price of KTB Investment ― which owns KTB Asset Management and KTB Network as its subsidiaries. In this year, the company's stock value has surged 155 percent, finishing at 8,250 won on Friday, compared to Jan. 4 of this year when it closed at 3,230 won. With the skyrocketing stock price, the firm's market cap has more than doubled to 497 billion won from the start of this year.

The firm's enhanced profitability has been demonstrated by its return on assets (ROA). KTB Investment & Securities saw its ROA increase by the largest percentage among local brokerage firms. While the average ROA of 10 major local brokerage firms ― including NH, Kiwoom and Mirae Asset ― stood at 1.96 percent during the first quarter of this year, KTB's ROA jumped to 3.86 percent, topping the list.

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