TOP CONTRIBUTORS

Ann H. Heffron

KB AT A GLANCE

P/E ► 2.98 LOW EV/EBITDA ► 4.62 AVG ROA ► 5% AVG ROE ► 23.6% AVG Debt to Equity ► 11.8 AVG Current Ratio ► 0   Interest Coverage Ratio ► 1.74 AVG

 

 

 

 

 

 

Revenue, Net Income, and Net MarginRevenue, Gross Profit, and Gross MarginEbitIncome Before TaxesNet Income from Continuing OpsInterest CoverageOperating Expenses

Kookmin Bank (KB) is the largest commercial lending organization in South Korea with KRW195,207 billion (US$210 billion) in assets at yearend 2006. The company is listed on the South Korean and New York stock exchanges. It was formed as a state-run bank in 1963 and was privatized in 1994. The company provides its services to individuals and small-to-medium-sized enterprises (SMEs) through its network of 1,347 branches in South Korea and through branches in other parts of the world, including Hong Kong, Luxembourg, New Zealand, Japan, the United Kingdom, and the U.S. The long-term credit ratings for Kookmin Bank are Aa3 by Moody's (raised twice by Moody s in 2007 to A1 from A3 in May 2007 and to Aa3 from A1 in July 2007), A by Standard & Poor's (upgraded from A- in March 2007), and A by Fitch (upgraded from A in June 2007).

The company provides a broad range of retail and commercial banking services. These services include deposits, personalized lending, mortgages, dealings in foreign exchange and derivatives, syndicated loans, and offshore lending. Kookmin Bank also conducts investment banking activities and provides financial advisory services for various infrastructure projects, equity and venture financing, and mergers and acquisitions.

For companies and trusts, Kookmin Bank offers account management and trust management services. Full range of the companies services are used to manage these accounts. And securities investment products are provided by KB Asset Management.

Kookmin Bank is also a manager of the National Housing Fund, a government fund that provides mortgage lending to low-income households and loans to construction companies to build houses for low-income households. In September 2003, Kookmin Bank took over Kookmin Credit Card (KCC) and merged it with its own card operations. Kookmin Bank generates about 90% of net revenues (total revenues less interest expense) from interest-bearing loans and securities. In August 2008, Kookmin Bank acquired a 23% interest in Kazakhstan's Bank TsentrKredit AO (Bank CenterCredit).

The company also trades and invests for its own account, mostly in debt products.

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