The Power of Non-Banking... KB Maintains 'Leading Finance' Position in H1

KB Financial Group reported a 13.1% year-over-year increase in net income of 38.846 trillion won for the first half of 2024, outperforming Shinhan Financial Group's 34.427 trillion won. However, when excluding non-banking subsidiaries, Shinhan Bank generated 2331 billion won more in net income than KB Citizens Bank. The divergence in performance stemmed from significant disparities in results between banking and non-banking sectors, particularly among securities subsidiaries. KB's strength in profitability and capital strength was evident, with a 14.09% ROE versus Shinhan's 12.37% and a 13.74% CET1 ratio compared to Shinhan's 13.43%. KB's performance was driven by stable interest income and a 50.6% surge in fee income, while Shinhan demonstrated balanced growth in both interest and non-interest income.