KB Financial Group (A105560) investor relations material

Executive summary

• Net profit for 2025 reached KRW 5.85 trillion, up 15.1% year-over-year, driven by robust non-interest income, stable interest income, and effective risk management amid market volatility.

• Maintained industry-leading capital adequacy with a CET1 ratio of 13.79% and BIS ratio of 16.16% at year-end 2025.

• Shareholder returns hit a record, with a total cash dividend of KRW 1.58 trillion, dividend per share of KRW 4,367, and total shareholder return ratio of 52.4%.

• Non-bank subsidiaries contributed significantly to group profit and fee income, reflecting a well-balanced business profile.

• Operating revenue decreased 4.5% YoY, but net operating profit and profit for the period increased, supported by higher interest and fee income.

Financial highlights

• Net interest income totaled KRW 13,073.1 billion, up 1.9% YoY; non-interest income was KRW 4,872.1 billion, up 16% YoY.

• SG&A expenses were KRW 7,051 billion, up 1.6% YoY, with a record-low CIR of 39.3%.

• Provision for credit losses increased 15.6% YoY to KRW 2,362.9 billion.

• Basic EPS was KRW 15,437, up ~20% YoY; DPS rose 37.6% to KRW 4,367.

• Profit before income tax was KRW 8.2 trillion, up 17.34% YoY.

Outlook and guidance

• 2026 will focus on corporate loan-centered growth, productive finance, and portfolio diversification, with NIM expected to decline gradually.

• Bank loan growth projected at ~5%, with household loans at 2-3% and corporate loans at 6-7%.

• SG&A expected to grow by about 4% in 2026, mainly due to increased education tax.

• CET1 ratio expected to remain high, with a possible slight decline but upward trend by Q3.

• 2026 capital return plan includes KRW 2.82 trillion in shareholder returns, maintaining CET1 above 13%.