Kookmin Bank
South Korea’s Kookmin Bank has captured the award again this year after completing the integration of merger partner H&CB in record time in 2002. That integration, in turn, helped it to perform well.
In September 2002, just 12 months after the merger was announced, the two banks had integrated their sophisticated IT systems, considerable number of employees and 70 million accounts. The stunning speed at which the integration was completed has set a new international standard and serves as a case study for academics and business consultants alike.
The merger has transformed Kookmin Bank into South Korea’s most powerful bank with Won171bn ($145m) in assets – more than double its next largest rival. The international financial community has taken notice: foreign investors own more than 70% of the bank’s stock, which is traded on the New York Stock Exchange.
The merger has boosted the bank’s performance. In 2002, Kookmin raised pre-tax profit 73% and achieved an ROE of 13.04%. Despite the merger, it kept its costs down, as is reflected in a cost-to-income ratio of just 41.7%.
