JB Financial Group (175330) investor relations material

Business strategy and portfolio management

• Focus on responsible growth through risk-adjusted profitability, niche market penetration, fintech collaboration, and AI transformation initiatives.

• Portfolio rebalancing now uses dual controls: RoRWA and NIS-CCR, segmenting loans into T1–T4 for targeted expansion and realignment.

• Core business share and profitability remain above industry averages, though the gap is narrowing.

• Capital allocation is managed to sustain profitability, maintain target CET1 ratios, and expand shareholder return capacity.

• ROE-RWA growth spread has contracted, but shareholder return volume and market ratios remain competitive versus peers.

Niche market expansion and credit quality

• Addressable market for foreign customers expanded from E-visa workers to long-term residents and international students, with tailored products for each segment.

• Product lineup diversified to include emergency micro-loans, mortgages, auto-title loans, and student loans, aiming to capture customers across their life cycle.

• Credit quality for foreigner loans is managed through alternative data, advanced scoring models, and optimized delinquency management.

• Auto-title loans are a new growth engine, leveraging JBWC’s expertise and expanding group-wide, with strong ROA and controlled delinquency.

• Group-wide sharing of credit and underwriting expertise enhances risk management and supports expansion in high RORWA products.

Fintech and AI transformation

• Fintech collaboration includes equity investments, customer touchpoint expansion, and joint overseas market entry.

• AI-driven transformation targets over KRW100bn in annual value creation by 2030, with initiatives in compliance, lending, digital marketing, and AI contact centers.

• Strategic partnerships with fintech and AI firms (e.g., Finda, Upstage) aim to establish Korea’s first AI-native bank.

• AI investment fund established to source group-wide opportunities and secure proprietary AI agent models.

• Productivity gains from AI are reinvested to drive further value creation and sustainable cost structure improvements.