KB Financial Group posted a net profit of 817 billion won ($776.9 million) for the second quarter, swinging back into the black after posting a 217 billion won loss in the same period last year.

The group attributed the boost to lower loan-loss reserves and provisional cost cuts of more than one-third from a year ago.

“The group has been reducing the allowance for bad debts for the past six months and it is showing in our performance,” a KB official said. The group posted 3.42 trillion won in net profit for the first half, up 12.9 percent from the same time last year. Revenue was down 3.5 percent on-year to 6.5 trillion won for April-June. Its flagship banking unit posted a net profit of 859.9 billion won for the second quarter.

The group has a total of 353.9 trillion won in assets in its banking unit and other affiliates.

The group was established in September 2008 under a long-term growth plan and an extensive stock transfer from major subsidiaries.

Its units include Kookmin Bank, KB Kookmin Card, KB Investment & Securities, KB Life Insurance, KB Asset Management, KB Real Estate Trust and KB Futures.

Shares closed at 52,500 won on KOSPI, down 2.42 percent from Thursday.

(cynthiak@heraldcorp.com)