Shareholders received a more than healthy 20% return on their investments and the share price rose by 89%, significantly outperforming the Korean Stock Exchange index.
Such dramatic results were achieved through improved risk management, and internal control system and customer relationship management. By fully utilising its nationwide branch network, Kookmin Bank maintained its dominant position in retail banking and fee-generating businesses. It also launched an early retirement programme to help reduce costs.
With stronger asset quality and improved profitability, Kookmin Bank was determined to expand and agreed to purchase a controlling interest in Korea Exchange Bank, aimed at boosting its size, thereby establishing a dominant position in the local market and branching out into foreign markets.
“We are thrilled to be chosen as South Korea’s Bank of the Year,” says Kang Chung Won. “2005 was indeed a very fruitful year for KB and our shareholders. We became the first Korean bank ever to exceed Won2 trillion [$21bn] in net income, with an 89% increase in share prices. In addition, we received top marks in customer preference and familiarity in recent surveys. We plan to build on our latest success by strengthening our relationship with customers and cultivating untapped markets.”
