KB Financial reports record profits in first half of 2025

In South Korea, KB Financial and Shinhan Financial, two of the country’s largest financial groups, recorded remarkable profits in the first half of 2025. As of July 25, KB Financial announced that it achieved a net profit of $2.49 billion during the first six months, a notable increase of 23.8% compared to the same period the previous year. This milestone marks KB's highest half-year profit in its history. Following closely, Shinhan Financial reported a record-high net income of $2.2 billion in the same time frame, which is an increase of 10.57% from a year ago. The banking units of both groups have been pivotal to their financial successes, with KB Kookmin Bank spearheading KB's operations and Shinhan Bank representing Shinhan's front. The positive financial outcomes elicited favorable responses from investors, reflected in the surge in the share prices of both financial groups. KB Financial shares rose by 1.65% on Thursday and 1.02% on Friday, while Shinhan Financial's stock price climbed by 2.16% on Friday alone. Analysts have pointed out various factors that may drive KB's stock price even higher, including better-than-expected earnings, potential interim dividends, and an increased payout ratio. Specifically, Hanwha Investment & Securities analyst Kim Do-ha categorized KB as a top pick in the banking sector. Conversely, Korea Investment & Securities researcher Baek Doo-san emphasized Shinhan’s balanced portfolio, which spans not only banking but also insurance, brokerage, and credit card sectors. He expressed a favorable outlook for Shinhan based on its potential for growth, especially in non-interest income and the overall performance of its non-banking sectors. The competitive landscape between these two financial giants is expected to intensify as they vie for the leading position in the industry, leveraging their robust core banking operations to achieve further growth and enhanced shareholder value.