KB Financial Group (A105560) investor relations material

Executive summary

• Q1 2026 net income reached KRW 1,892.4 billion, up 11.5% YoY, driven by record-high non-interest income and stable net interest income.

• Non-bank subsidiaries contributed 43% of group net profit, reflecting successful capital market expansion and diversification.

• ROE improved by 0.9 percentage points YoY to 13.94%, reflecting enhanced profitability and capital efficiency.

• The board approved immediate cancellation of 14.26 million treasury shares (3.8% of total), the largest in industry value, and a quarterly dividend of KRW 1,143 per share, up 25.3% YoY.

• Total consolidated assets reached KRW 829,741,377 million as of March 31, 2026.

Financial highlights

• Net interest income for Q1 was KRW 3,334.8 billion, up 2.2% YoY, supported by optimized funding and core deposit expansion.

• Non-interest income hit a record KRW 1,650.9 billion, up 27.8% YoY, with fee and commission income up 45.5% YoY to KRW 1,359.3 billion.

• G&A expenses rose to KRW 1.7649 trillion due to higher taxes and bonuses, but CIR remained efficient at 35.4%.

• Credit loss provisions dropped 24.8% YoY to KRW 493.2 billion, with credit cost ratio at 0.40%.

• BIS ratio at quarter-end was 15.75%, CET1 ratio 13.63%, maintaining industry-leading capital adequacy.

Outlook and guidance

• Household loan growth targeted at 1%-2%, corporate loans at 6%-7%, with overall credit growth expected around 4% for 2026.

• NIM expected to remain stable or slightly increase, reflecting market rate trends and funding structure improvements.

• Credit cost guidance maintained at 40 bps, with a conservative provisioning stance amid macro uncertainties.

• Ongoing share buybacks and quarterly-even dividend policy to enhance shareholder returns.

• Financial statements are prepared under Korean IFRS and are subject to auditor review, which may result in changes.