Form 6-K Current Reports
2002 Bank Operating Results (Feb. 5, 2003)
2003-02-06On February 5, 2003, the board of directors of Kookmin Bank has approved and ratified non-consolidated financial statements prepared in accordance with Korean GAAP for the fiscal year of 2002. After the board of directors’ meeting, Mr. Jung Tae Kim, CEO & President of Kookmin Bank held a conference to discuss the operating results with investors. An exhibit for the presentation material is attached at the end of this document.
Financial Highlights
The figures in this section are taken from unaudited and non-consolidated financial statements. They are subject to change during the course of audit process by our independent auditor.
Pro-forma figures for year 2001 have been derived from pro-forma financial statements in connection with the merger between former Kookmin Bank and H&CB. Kookmin Bank’s official accounting method relies on purchase accounting, which accounts for an acquisition using market value for the consolidation of the two entities’ net assets on the balance sheet. For the purpose of comparison, however, we presented figures of purchase accounting and figures derived through simple arithmetic summation of two banks’ past earnings, excluding the inter-bank transaction amounts.
The following tables are showing key figures for the operating results and asset quality.
| (billion Won) | ;For the 12-month periods ended December 31 | ||||
|---|---|---|---|---|---|
| 2002 | 2001 (Purchase Method) |
Change based on purchase method (%) |
2001 (Pro-forma) |
Change based on pro-forma (%) |
|
| Operating Revenue | 15,585 | 10,994 | 41.8% | 16,682 | -6.6% |
| Operating Income | 2,266 | 846 | 167.8% | 2,042 | 11% |
| Operating Income before Provisioning |
3,868 | 1,829 | 111.5% | 3,378 | 14.5% |
| Ordinary Income | 1,894 | 1,092 | 73.4% | 2,183 | -13.2% |
| Net Income | 1,310 | 741 | 76.8% | 1,486 | -11.8% |
| (billion Won) | As of December 31 | ||
|---|---|---|---|
| 2002 | 2001 | Change (%) | |
| Total Assets | 171,499 | 156,894 | 9.3% |
| Total Liabilities | 161,449 | 147,980 | 9.1% |
| Total Stockholders’ Equity | 10,049 | 8,914 | 12.7% |
| (billion Won) | As of December 31 | ||
|---|---|---|---|
| 2002 | 2001 | Change | |
| Substandard & below loans to total loans | 2.89% | 3.56% | - 0.67%p |
| Delinquency ratio | 2.84% | 2.51% | 0.33%p |
Key financial indicators are as follows.
Return on assets: 0.81%
Return on equity: 13.04%
Earnings per share: 4,123 Won
In the conference, Mr. Jong-Kyoo Yoon, CFO of Kookmin Bank, emphasized that year 2003 is important in respect that it is the year to get full advantage of the merger. In addition, he itemized key implementation agenda that Kookmin Bank should stick to in year 2003 as follows.
Pursue profit oriented asset growth policy
Expand fee businesses
Enhance risk management
Strengthen asset quality
Increase shareholders’ value
• Attached File: 2002 Earnings Conference Presentation Material : PPT File
This document and the attached presentation material contain forward-looking statements, as defined in the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Kookmin Bank’s current views with respect to future events and financial performance, and are subject to certain risks and uncertainties, which could cause actual results to differ materially from those anticipated.
Although Kookmin Bank believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be attained. Kookmin Bank undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.