JB Financial Group announced on February 6 that it achieved net profit (controlling interest) of KRW 586 billion in 2023.
This is a 2.5% year-on-year decrease, but considering non-economic factors such as proactive provisioning and financial support for the public, the group's performance exceeded the guidance level.
In terms of key management indicators, we continued to maintain the highest profitability levels in the industry with ROE of 12.1% and ROA of 0.99%.
In particular, the operating expense ratio (CIR), an indicator of management efficiency, improved by 1.6 percentage points year-on-year to 38.3%, driven by higher interest income and ongoing cost reduction efforts, and remained stable at an all-time low.
Tier 1 capital ratio (provisional) increased by 0.78 percentage points year-on-year to 12.17%, and the bank plans to continue its shareholder return policy to enhance shareholder value based on the improved capital ratio.
On the same day, the Board of Directors of JB Financial Holdings declared a final dividend of KRW 735 in cash per common share. Taking into account the interim dividend of 120 won paid last year, the payout ratio is 28%. In addition, it was decided to cancel 20 billion won worth of treasury shares purchased through a trust agreement in 2023.
The Group's subsidiaries performed well based on profitability-oriented internal management, even in a business environment with continued economic uncertainty, including a contraction in the real estate market.
Jeonbuk Bank and Gwangju Bank recorded KRW 204.5 billion and KRW 240.7 billion, respectively, while JB Woori Capital posted KRW 187.5 billion, up 5.1% year-on-year, leading the group's solid performance. JB Asset Management posted a net profit of KRW 5 billion, while JB Investment realized a profit of KRW 3.7 billion. JB Financial's Phnom Penh Commercial Bank (PPCBank) in Cambodia, a subsidiary of JB Financial, posted a profit of 34.1 billion won, up 14.8% year-on-year.
"As uncertainties in domestic and international economic conditions and financial markets are expected to continue this year, JB Financial Group will continue to prioritize proactive risk management based on future forecasts and promote profitability-oriented internal management," said Kim Ki-hong, Chairman of JB Financial Group.
