November 29, 2024

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JB Financial Group Chairman Kim Ki-hong (JB Financial Group)

JB Financial Group is seeking another big leap under Chairman Kim Ki-hong who has recently been reappointed for the third term for his leadership in elevating the group’s financial stability and profitability.

In the third quarter of this year, its return on equity reached 14.7 percent, reflecting a 2.6 percentage-point increase on-year. The company highlighted this as the highest ROE ratio among domestic financial holding companies, surpassing the double-digit target often regarded as a benchmark for success.

JB Financial has implemented measures to enhance shareholder value, contributing to stock price increases even before the introduction of the Korea Value-Up Program. By improving its profitability index, the company has experienced a steady increase in stock prices over the past five years, achieving a 175 percent return.

To further boost corporate value, JB Financial unveiled a three-year strategic plan to achieve a price-to-book value ratio of 1. The group aims to maintain an ROE exceeding 13 percent, supported by stable common equity tier 1 capital, while gradually increasing shareholder returns to 45 percent by 2026. As part of this initiative, it will reacquire or cancel treasury shares with a payout ratio exceeding 28 percent.

Additionally, JB Financial has actively collaborated with fintech companies to adapt to the digital transformation of the financial industry and strengthen customer engagement.

Its subsidiary, Gwangju Bank, launched a joint loan product with Toss Bank, a major online-only bank here, in August. Within just two months, the product generated over 150 billion won ($107 million) in loans. Last year, JB Financial partnered with Finda, a loan brokerage and management platform, and Hanpass, a service for overseas remittances by foreigners. The group also inked partnerships with Vietnamese companies, including Infina, an asset management platform, and OKXE, a second-hand motorcycle transaction platform, in its ongoing global push.

“Amid uncertain business conditions, Chairman Kim Ki-hong has focused on strengthening competitiveness and managing risks,” said a company official. “Our extensive collaborations with fintech firms have maximized our competitiveness.”

By Park Min-ha (en23mp@heraldcorp.com)