KB Financial Group (A105560) Q1 2025 earnings summary

Executive summary

• Q1 2025 net profit reached KRW 1,699.1 billion, up 62.9% year-over-year, with ROE at 13.04% and strong contributions from non-banking subsidiaries, which accounted for 42% of group earnings.

• Consolidated total assets were KRW 770,308,563 million, with total equity of KRW 60,134,749 million as of March 31, 2025.

• Shareholder return policy is linked to CET1 ratio, with no upper limit on total return; Q1 included a KRW 912 per share cash dividend and KRW 300 billion share buyback, raising the annual dividend to KRW 1.34 trillion.

• Group ROE improved by 4.91 percentage points year-over-year to 13.04%.

• Total comprehensive income for Q1 2025 was KRW 789,908 million.

Financial highlights

• Total operating profit hit a record KRW 4.6 trillion, with net interest income at KRW 3,262.2 billion and NIM for group and bank at 2.01% and 1.76%, respectively.

• Non-interest income improved to KRW 1,292 billion, with net fee income at KRW 934 billion and insurance operating profit at KRW 437.8 billion.

• G&A expenses were KRW 1,605.6 billion, down 1.4% year-over-year; CIR reached a record low of 35.3%.

• Provision for credit losses was KRW 655.6 billion, up 53.1% year-over-year, mainly due to one-off bank provisioning; credit cost at 54 bps.

• EPS for Q1 2025 was 4,429 KRW, up 69.8% year-over-year.

Outlook and guidance

• Annual credit cost for 2025 expected to be in the mid-40 bps range, with CCR expected to remain stable.

• Target annual growth rate for risk-weighted assets is 4.5%.

• Shareholder return policy will remain flexible to adapt to market conditions, with a projected total shareholder return ratio of 39.8% for 2024.