KB Financial Group (105560) investor relations material

Executive summary

• 9M net profit rose 13.1% YoY to KRW 5,792.1 billion; cumulative ROE improved 1.1 percentage point YoY to 13.89%.

• Balanced bank and non-bank earnings supported growth through volatile markets; higher net interest and fee income, lower provisions and a deferred-tax benefit contributed to profit growth.

• Management emphasized diversified revenue, risk-adjusted returns and disciplined cost control.

Financial highlights

• 9M gross operating income increased 9.7% YoY to KRW 14,744.1 billion; pre-provision operating profit rose 11.2% to KRW 9,383.7 billion.

• 9M net interest income rose 2.9% YoY to KRW 9,985.3 billion; Q3 group net interest income was KRW 3,507 billion, up 11.6% QoQ.

• 9M net non-interest income increased 27.3% YoY to KRW 4,758.8 billion; net fee income rose 38.5% to KRW 4,087.8 billion and exceeded KRW 1 trillion for four consecutive quarters.

• Q3 standalone net profit was KRW 1,907.5 billion, down 4.3% QoQ.

• 9M G&A expenses increased 7.0% YoY to KRW 5,360.4 billion; the cumulative cost-to-income ratio improved 0.8 percentage point to 36.4%.

Outlook and guidance

• Repricing of loans following July–August 2026 rate hikes is expected to take effect gradually from Q4 and support asset yields; low-cost deposits and stable NIM management remain priorities.

• FY group credit cost is projected within the mid-40 bps range; conservative provisioning and closer monitoring of vulnerable borrowers will continue.

• Fee-income volatility is expected to persist; quarterly baseline fee income is KRW 1 trillion, with flow, CIB, retirement and pension businesses targeted for growth.

• Management expects net income to continue its upward trajectory, supported by cost efficiency and prudent provisioning amid fee-income adjustments.