KB Financial Group (A105560) investor relations material

Executive summary

• Net profit for the first half reached KRW 3.44 trillion, up 23.8% year-over-year, driven by strong noninterest income and diversified revenue streams.

• ROE for the first half was 13.03%, a 2.23 percentage point increase year-over-year.

• CET1 ratio as of June 2025 stood at 13.74%, reflecting robust capital adequacy.

• Shareholder return for 2025 is set at a record high of KRW 3.1 trillion, including proactive share buybacks and cash dividends.

• Total shareholder return (TSR) for 2025 includes a mix of dividends and share buybacks, with CET1 ratio management a priority.

Financial highlights

• First half group net interest income was KRW 6.37 trillion, stable year-over-year despite margin pressure from rate cuts.

• Noninterest income rose 10.9% year-over-year to KRW 2.72 trillion, supported by improved securities and derivatives performance.

• Group net fee income increased 2.9% year-over-year and 10.5% quarter-over-quarter, surpassing KRW 1 trillion in Q2 for the first time.

• G&A expenses grew 4.1% year-over-year, with CIR managed at 36.9% or 49.4% depending on reporting basis.

• Provision for credit losses rose 33.6% year-over-year to KRW 1.31 trillion, but decreased slightly quarter-over-quarter.

Outlook and guidance

• Expectation of continued asset quality improvement in the second half, with credit cost anticipated to stabilize at mid-40bp level barring external shocks.

• Loan growth guidance for 2025: total bank loans to grow 4–5%, household loans around 3%, and corporate loans 6–7%.

• Shareholder return framework to remain consistent, with excess capital above CET1 13% fully returned to shareholders.

• CET1 ratio management remains a priority, with further proactive shareholder returns planned.