KB strengthens private banking services

KB strengthens private banking services

brackets. But tougher competition with our rivals, domestic and international, and declining margins are forcing the bank to find new growth drivers,” a bank official said.

Since taking office in November last year, KB Kookmin Chief Executive Yoon Jong-kyoo has put as much focus on corporate and investment banking as on retail banking in a diversification strategy.

The move is regarded as inevitable in current market conditions where customers seek financial products which offer higher rates of investment returns amid record low interest rates.

The number of the so-called VIP Channels set up to handle financial transactions for high-net-worth customers increased to 980 at the end of November this year from 946 a year earlier, according to KB data.

VIP Channels include private banking centers, STAR TABLE lounges, VIP lounges and VIP windows, KB Kookmin said. It expects the number will increase in coming years on rising demand for wealth management.

The number of customers who deposit 100 million won or more at KB jumped to 362,000 at the end of November this year from 261,000 at the end of 2011, data showed.

To offer quality services to high-net-worth individuals, KB Kookmin signed a memorandum of understanding with Switzerland-based Lombard Odier, which specializes in private banking services, the bank said.

Under the deal, Lombard Odier will offer its 200 years of knowhow and experience in the private banking business to KB. KB is required to share sales knowhow and market information of the domestic market with the European bank, the statement said.

KB Kookmin posted a net profit of 963.80 billion won ($820 million) in the January-September period, up 9.4 percent from 881.06 billion won in the same period of the previous year, according to a regulatory filing.

As of Tuesday, KB has 20,579 employees and runs 1,135 outlets at home and 19 sales networks in 11 countries.

Source: http://www.koreatimes.co.kr/www/news/biz/2015/12/488_193774.html

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