KB Financial Group (A105560) investor relations material

Executive summary

• 2025 saw unprecedented market volatility, delayed economic recovery, and asset quality pressures, but robust risk management and a stable portfolio enabled strong performance, with record net profit of 5.85 trillion won, up 15.1% year-over-year, driven by robust non-interest income and stable interest income streams.

• Maintained industry-leading capital adequacy with a CET1 ratio of 13.79% and BIS ratio of 16.16% as of December 2025.

• Shareholder returns reached a record 52.4%, with 1.58 trillion won in dividends and 1.48 trillion won in share buybacks, and non-bank subsidiaries contributed 37% of group net profit.

• Fiscal year 2025 saw consolidated operating revenue decrease by 4.5% year-over-year, while net operating profit rose 6.04% and profit for the period increased 16.34%.

• Growth in profit was driven by higher interest income from increased loan and financial asset balances, and robust fee income.

Financial highlights

• Net profit for 2025 reached 5.85 trillion won, up 15.1% year-on-year, with net interest income at 13.07 trillion won (+1.9%) and non-interest income at 4.87 trillion won (+16%).

• Total cash dividends for 2025 amounted to 1.58 trillion won, a 32% increase year-on-year; dividend per share rose 37.6% to 4,367 won.

• ROE for 2025 was 10.86%, up 1.1 percentage points year-on-year; basic EPS increased by approximately 20% to 15,437 won.

• SG&A expenses rose only 1.6% to 7.05 trillion won; cost-to-income ratio hit a record low of 39.3%.

• Profit before income tax was 8.20 trillion won, up 17.34% year-over-year.

Outlook and guidance

• 2026 will focus on corporate loan-centered growth, productive finance, and portfolio diversification, with household loan growth expected to be limited by government policy.

• NIM is expected to see a gradual decline, remaining in the low- to mid-single-digit range.

• SG&A is projected to grow by about 4% due to increased education tax, but recurring growth will be managed around 2%.

• CET1 ratio is expected to remain stable, with a possible slight decline but an upward trajectory by Q3.

• Focus on business model transition and market/customer expansion to secure future growth engines.