36. Earnings per Share
36.1 Basic Earnings Per Share
Basic earnings per share is calculated by dividing profit and loss attributable to ordinary equity holders of the Parent Company by the weighted average number of ordinary shares outstanding, excluding the treasury shares, during the years ended December 31, 2015, 2016 and 2017.
Weighted average number of ordinary shares outstanding:
| 2015 | 2016 | 2017 | ||||||||||
| (In number of shares) | ||||||||||||
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Beginning (A) |
386,351,693 | 386,351,693 | 418,111,537 | |||||||||
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Issue of ordinary shares related to business combination (B) |
— | 6,421,389 | — | |||||||||
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Acquisition of treasury shares (C) |
— | (9,153,437 | ) | (21,618,520 | ) | |||||||
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Sales of treasury shares (D) |
— | — | 2,231,945 | |||||||||
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Weighted average number of ordinary shares outstanding (E=A+B+C+D) |
386,351,693 | 383,619,645 | 398,724,962 | |||||||||
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Basic earnings per share:
| 2015 | 2016 | 2017 | ||||||||||
| (in Korean won and in number of shares) | ||||||||||||
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Profit attributable to ordinary shares (F) |
￦ | 1,698,317,850,139 | ￦ | 2,143,744,271,801 | ￦ | 3,311,437,880,186 | ||||||
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Weighted average number of ordinary shares outstanding (G) |
386,351,693 | 383,619,645 | 398,724,962 | |||||||||
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Basic earnings per share (H = F / G) |
￦ | 4,396 | ￦ | 5,588 | ￦ | 8,305 | ||||||
36.2 Diluted Earnings per Share
Diluted earnings per share is calculated using the weighted average number of ordinary shares outstanding which is adjusted by the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The Group’s dilutive potential ordinary shares include stock grants.
A calculation is done to determine the number of shares that could have been acquired at fair value (determined as the average market share price of the Group’s outstanding shares for the period) based on the monetary value of the subscription rights attached to the share options. The number of shares calculated above is compared with the number of shares that would have been issued assuming the exercise of stock grants.
Adjusted profit for diluted earnings per share for the years ended December 31, 2015, 2016 and 2017, are as follows:
| 2015 | 2016 | 2017 | ||||||||||
| (In Korean won) | ||||||||||||
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Profit attributable to ordinary shares |
￦ | 1,698,317,850,139 | ￦ | 2,143,744,271,801 | ￦ | 3,311,437,880,186 | ||||||
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Adjustment |
— | — | — | |||||||||
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Adjusted profit for diluted earnings |
￦ | 1,698,317,850,139 | ￦ | 2,143,744,271,801 | ￦ | 3,311,437,880,186 | ||||||
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Adjusted weighted average number of ordinary shares outstanding to calculate diluted earnings per share for the years ended December 31, 2015, 2016 and 2017, are as follows:
| 2015 | 2016 | 2017 | ||||||||||
| (in number of shares) | ||||||||||||
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Weighted average number of ordinary shares outstanding |
386,351,693 | 383,619,645 | 398,724,962 | |||||||||
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Adjustment: |
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Stock grants |
1,741,558 | 2,013,044 | 2,319,533 | |||||||||
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Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share |
388,093,251 | 385,632,689 | 401,044,495 | |||||||||
Diluted earnings per share for the years ended December 31, 2015, 2016 and 2017, are as follows:
| 2015 | 2016 | 2017 | ||||||||||
| (in Korean won and in number of shares) | ||||||||||||
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Adjusted profit for diluted earnings per share |
￦ | 1,698,317,850,139 | ￦ | 2,143,744,271,801 | ￦ | 3,311,437,880,186 | ||||||
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Adjusted weighted average number of ordinary shares outstanding for diluted earnings per share |
388,093,251 | 385,632,689 | 401,044,495 | |||||||||
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Diluted earnings per share |
￦ | 4,376 | ￦ | 5,559 | ￦ | 8,257 | ||||||