KB Financial Group (A105560) Q4 2024 earnings summary

Executive summary

• 2024 net profit rose 10.5% year-over-year to KRW 5.08 trillion, with EPS up 12.2% to KRW 12,880, supported by business diversification, sustainability focus, and the launch of the Value-up plan.

• Total assets reached KRW 757.8 trillion and total equity KRW 59.8 trillion as of year-end.

• Shareholder returns included sector-first share buyback and cancellation, equal quarterly dividends, and a 520 billion won buyback in 1Q25.

• Group ROE improved to 9.72%, and CET1 ratio reached 13.51%.

• Growth was driven by increased interest income, higher loan balances, and improved insurance profitability.

Financial highlights

• FY24 net profit: KRW 5.08 trillion (+10.5% YoY); pre-provisioning operating profit: KRW 10.09 trillion (+5.9% YoY); operating revenue: KRW 85.2 trillion (+9.86% YoY).

• Net interest income: KRW 12.83 trillion (+5.3% YoY); net fee and commission income: KRW 3.85 trillion (+4.8% YoY).

• Group CIR: 40.7% (down 0.4pp YoY); credit cost ratio: 43bps (improved 24bps YoY).

• Total assets: KRW 757.8 trillion (+5.9% YoY); loans in won up 6.4%.

• Provisioning for credit losses: KRW 2.04 trillion (down KRW 1.1 trillion YoY); group credit costs: 43bps.

Outlook and guidance

• Growth will be managed against nominal GDP, aiming for steady, predictable asset growth and minimized NIM volatility.

• Loan growth guidance for 2025: ~5% overall, with 4% for household loans and 6% for corporate loans.

• Conservative provisioning to continue, with CCR expected at mid-40bps, reflecting a cautious economic outlook.

• Continued focus on cost efficiency, digital transformation, and balanced business portfolio to drive sustainable growth.

• TSR expected to rise in 2025, with flexible timing for share buybacks based on CET1 ratio trends.