JB Financial Group (175330) investor relations material

Group business strategy

• Ongoing asset portfolio rebalancing prioritizes risk-adjusted returns, with increased focus on guarantee-backed real estate PF and strategic products, while reducing low-yield mortgage loans and shifting capital business toward used car financing and investment banking diversification.

• Maintained double-digit ROE for seven years, with JB Woori Capital achieving a 21% CAGR in net income since 2018, driving group profitability and ROE improvement from 10–12% (2018–2020) to 16–18% (since 2021).

• Targeting niche markets by expanding foreigner loans, aiming to exceed KRW 1 trillion in 2026, leveraging the Bravo Korea platform and broadening product offerings to long-term residents and international students.

• Strengthening asset quality management through cross-border credit information exchange projects and proprietary credit scoring models, especially for foreign customers and auto-title loans.

• Unique inorganic growth strategy includes fintech partnerships, global expansion, and AI-driven initiatives, with a focus on digital assets and sector expansion through AI transformation (AX), targeting KRW 100 billion in value creation by year three.

Risk management strategy

• Developing advanced credit scoring models using machine learning and neural networks, optimizing for loans to foreigners and auto-title loans, with models outperforming traditional benchmarks.

• Implementing AI-driven LTV validation agents for real estate mortgage loans, automating adequacy checks and policy recommendations, with full deployment scheduled for July 2026.

• Regular reviews and adjustments of LTV ratios based on automated analysis of auction data and market trends, ensuring timely response to property price volatility.

Shareholder returns

• CET1 ratio remains stable due to controlled RWA growth and focus on core businesses, supporting continuous expansion of shareholder returns, with total shareholder return CAGR more than double the sector average since 2019.

• Enhanced 2026 shareholder return plan increases total shareholder return ratio from 45% (2025) to 50% (2026) and nearly doubles quarterly dividend per share year-over-year.

• Share buybacks and increased cash dividends are central to the 2026 Value-up Plan, with total shareholder return per share projected to rise by 89.2% year-over-year.