Jakarta. KB Bank recently reported that it had registered a robust financial performance last year.

According to a press release, the bank has witnessed positive improvements in strengthening its business fundamentals amid the ongoing transformation process since becoming part of South Korea’s largest financial institution KB Financial Group (KBFG). As of Dec. 31, 2024, KB Bank logged significant milestones across various performance indicators.

The bank’s performing loan portfolio (normal loan) grew by 19.24 percent year-on-year compared to 2023. KB Bank attributed the growth to the positive performance in the wholesale and retail segments, which increased by 28.89 percent and 17.43 percent, respectively. Although total loans declined by 6.17 percent, this aligns with KB Bank’s strategy to improve asset quality. 

The loan-at-risk (LAR) ratio improved significantly to 23.10 percent, down from 39.77 percent. The decline in the bank’s non-performing loan (NPL) ratio also reflected the bank’s efforts in enhancing its asset quality. Data showed that its gross NPL had improved from 9.70 percent to 8.74 percent. Net NPL had also dropped from 4.95 percent to 4.38 percent.

KB Bank also maintained solid liquidity, with CASA (Current Account Savings Account) growing by 29.92 percent year-on-year, contributing to a 2.85 percent increase in third-party funds. The CASA ratio improved to 29.54 percent from 23.39 percent, while the liquidity coverage ratio (LCR) remained robust at 146.84 percent.

These fundamental improvements enabled the issuer with the stock code BBKP to record a net interest income (NII) of Rp 909 billion, growing by 49.20 percent year-on-year. This growth was driven by a 12.20 percent increase in interest income, balanced by controlled interest expenses, which rose by 6.17 percent.

As a result, KB Bank improved its net interest margin (NIM) to 1.31 percent from 0.78 percent in the previous year. The bank also lowered its other operating expenses by 11.94 percent from Rp 2.04 trillion in 2023 to Rp 1.80 trillion the following year. This marks the first time since 2018 that other operating expenses stood below Rp 2 trillion.

“KB Bank has overcome significant challenges in its transformation journey toward becoming a healthy financial institution. We believe the bank has passed the most difficult phase and is now ready to deliver positive performance and sustainable growth,” KB Bank’s President Director Tom (Woo Yeul) Lee was quoted as saying in a press statement on Saturday. 

A Solid Foundation for Profitability in 2025

Throughout 2024, KB Bank recorded a net loss of Rp 7.38 trillion, primarily due to non-recurring expenses incurred as part of its strategy to achieve profitability in 2025.

The non-recurring expenses include the recognition of deferred tax expenses amounting to Rp 1.42 trillion, related to the potential future recovery of income tax due to unutilized tax loss carryforwards. KB Bank also recorded an impairment from the revaluation of its subsidiary amounting to Rp 1 trillion as a strategic measure to strengthen its balance sheet. KB Bank said that these changes would not affect its capital structure.

“With these positive achievements and strategic measures, we are optimistic that KB Bank will deliver a net profit in 2025 and become one of the leading banking services in the future,” Tom said.