JB Financial Group (175330) CMD 2025 presentation summary

Business strategy and growth initiatives

• Focus on responsible growth through increasing the core business mix and rebalancing underlying businesses, with a strong emphasis on niche market penetration and fintech partnerships.

• Expansion into financial services for foreigners, leveraging dedicated credit assessment models and the Bravo Korea app to broaden financial and lifestyle offerings.

• Strategic overseas expansion, particularly in Indonesia and Vietnam, through investments and partnerships with fintechs like AIZEN and acquisitions such as Bukopin Finance.

• Collaborative growth with fintech and platform companies to expand the customer base, enhance digital channels, and co-develop new products and services.

• Building a global talent pool and cross-border credit information exchange to enhance brand power and customer loyalty among foreign residents.

Financial performance and strategy

• Maintained above-industry RORWA growth by expanding the core business mix since 2019, with RWA growing at 4.5% CAGR and won-denominated loans at 6% CAGR, supporting a steady CET1 ratio.

• Active asset rebalancing within underlying businesses led to RWA growth being lower than loan growth, improving RORWA and CET1 ratio.

• Despite above-target loan growth, RWA growth was effectively managed; NIM was below target due to market rates and portfolio mix, but CCR remained in line with targets.

• 2H25 strategy focuses on sustaining qualitative growth, defending NIM through higher-margin products, and stabilizing CCR as delinquency rates trend downward.

Shareholder return status and plans

• Gradual expansion of shareholder returns through increased buybacks, cancellations, and maintaining a differentiated ROE, with a target shareholder return ratio of 45% for 2025–2026.

• Increasing quarterly dividends and share buybacks, aiming for a balanced payout and planning for a dividend growth rate of around 28% by 2026.

• Shareholder return policy will be reassessed if the P/B ratio rises to 1x; if it remains below 1x beyond 2027, both RWA growth and return policy will be reviewed.