KB Financial Group (A105560) Q3 2024 earnings summary

Executive summary

• Announced a sustainable Value-up Plan focused on maximizing profitability, maintaining asset quality, and enhancing shareholder returns, with a strong emphasis on sustainability and predictability.

• Cumulative net profit for Q3 2024 reached ₩4.395 trillion, up 0.4% year-over-year, driven by balanced growth in non-banking subsidiaries such as securities, insurance, and card.

• Group maintained a strong CET1 ratio of 13.85% as of September 2024, the highest capital buffer in the industry.

• Additional ₩100 billion share buyback and cancellation in 2024, totaling ₩820 billion year-to-date, underscoring commitment to shareholder value.

• KB Financial Group reported consolidated total assets of ₩745.3 trillion and total equity of ₩59.9 trillion as of September 30, 2024.

Financial highlights

• Net interest income for the nine-month period was ₩9.52 trillion, and net fee and commission income was ₩2.85 trillion.

• Gross operating profit increased 5.8% year-over-year to ₩13.37 trillion; PPOP up 7.4% year-over-year to ₩8.49 trillion.

• Cumulative credit cost ratio improved to 0.41% (down 11bps YoY); bank CCR at 0.13%.

• Group NIM at 1.95% for Q3 2024, down 13bps quarter-over-quarter due to spread contraction and lower asset yields.

• CIR maintained at 36.5% (cumulative), reflecting strong cost control.

Outlook and guidance

• CET1 ratio is expected to remain above 13.5% for the year, despite potential Q4 dip from FX and seasonality.

• Q4 NIM is expected to stabilize, with next year's quarterly NIM projected to be similar to this year.

• Net profit growth is anticipated to continue, with non-interest income expected to rise as interest rates decline.

• Conservative risk management and sufficient provisions expected to ensure ongoing credit cost stability.