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KB Financial Q3 net profit slips 1.4% YOY

KB Financial Group Inc.'s net profit for the quarter ended Sept. 30 slipped 1.4% year over year.

The South Korean financial group said its third-quarter profit attributable to shareholders fell to 940.3 billion won from 953.8 billion won in the prior-year period. Basic EPS inched up to 2,413 won from 2,407 won, according to the group's Oct. 24 report.

The S&P Global Market Intelligence consensus normalized and GAAP EPS estimate for the quarter was 2,356 won and 2,377 won, respectively, with three analysts reporting.

Net interest income grew to 2.319 trillion won from 2.251 trillion won, and net fee and commission income rose to 580.8 billion won from 523 billion won. Net operating profit amounted to 1.248 trillion won, down from 1.328 trillion won.

KB Financial said it booked net other operating expenses of 30 billion won, compared to income of 30.90 billion a year earlier. Provisions for credit loss increased year over year to 166.1 billion won from 146.5 billion won.

At the end of September, the group's cumulative net interest margin stood at 1.96%, down from 1.99% at the end of the prior-year period.

Its nonperforming loan ratio improved to 0.55% as of Sept. 30 from 0.59% as of June 30 and from 0.61% as of Sept. 30, 2018.

The group's BIS ratio came in at 15.29%, up from 15.04% in the previous quarter and from 14.91% in the year-ago period. Its common equity Tier 1 ratio at the end of September rose to 14.39% from 14.23% and 14.38% over the same respective periods.

Over at KB Kookmin Bank, profit attributable to shareholders fell 3.4% year over year in the aggregate 701.6 billion won from 726 billion won. The bank's net interest income grew to 1.608 trillion won from 1.545 trillion won. Its cumulative net interest margin for the period came to 1.69%, down from 1.70% in the prior quarter and from 1.71% a year earlier.

The bank's NPL ratio improved to 0.41% at September-end from 0.45% at June-end and from 0.48% as of Sept. 30, 2018.

The bank's BIS ratio clocked in at 16.42% as of Sept. 30, up from 15.97% as of June 30 and from 15.71% in the prior-year period. Its common equity Tier 1 ratio rose to 14.90% from 14.72% and 14.70% over the same respective periods.

As of Oct. 23, US$1 was equivalent to 1.171.80 South Korean won.