KB Financial Group regained the top spot in the net profit ranking last year among financial holding companies due to the Lime Fund scandal and the booming stock market.
According to the disclosures by the nation’s five major financial holding companies, KB Financial Group regained its position as the "leading financial group" for the first time in three years with 3.45 trillion won ($3.1 billion) in net profit, while Shinhan Financial Group gave up its throne with 3.414 trillion won ($3 billion).
Hana Financial Group ranked third in the industry with 2.637 trillion won, while Nonghyup Financial Group rose to fourth place with 1.735 trillion won, beating Woori Finance, which stood at 1.307 trillion won. In 2019, Shinhap topped the list, followed by KB, Hana, Woori, and Nonghyup.
KB Financial Group recaptured its leading financial throne, which had to be given to Shinhan Financial Group for two consecutive years in 2018 and 2019.
"We maintained our profit stamina despite the economic downturn due to increased core profits and M&A results," a KB Financial official said. "The non-banking sector accounted for 34.3% of current net profit, improving the bank and non-banking performance in a balanced manner."
It was the private equity fund scandal that determined the competition between KB and Shinhan for the leading financial group.
Shinhan Financial Group suffered a large loss from the sale of Lime Fund at Shinhan Financial Investment and Shinhan Bank, while KB Financial Group was relatively free from the Lime Fund crisis.
Shinhan Financial Investment saw its net profit fall 29.9 percent year-on-year to 154.8 billion won last year. KB Securities, on the other hand, posted a net profit of 425.6 billion won, up 65 percent from a year earlier.
