KB Financial Group (A105560) Q4 2025 earnings summary

Executive summary

• 2025 saw significant market volatility, delayed economic recovery, and asset quality pressures, but robust risk management and a diversified portfolio enabled strong performance, with record net profit of 5.85 trillion won, up 15.1% year-over-year, driven by strong non-interest income and stable interest income streams.

• Maintained industry-leading capital adequacy with a CET1 ratio of 13.79% and BIS ratio of 16.16% as of December 2025.

• Total shareholder return reached a record 52.4%, with 1.58 trillion won in dividends and 1.48 trillion won in share buybacks.

• Non-bank subsidiaries contributed about 37% of group net profit, reflecting a well-balanced business profile.

Financial highlights

• Net profit for 2025 reached 5.85 trillion won, up 15.1% year-on-year, reflecting normalization after one-off costs in 2024.

• Net interest income was 13.07 trillion won, up 1.9% year-on-year; non-interest income surged 16% to 4.87 trillion won.

• Cost-to-income ratio (CIR) hit a record low of 39.3%, with G&A expenses rising only 1.6% year-on-year.

• Credit loss provisions increased 15.6% to 2.36 trillion won; credit cost at 48bps.

• EPS rose to 15,437 won (basic); DPS up 37.6% to 1,770 won.

Outlook and guidance

• 2026 will focus on corporate loan-driven growth, productive finance, and portfolio diversification, with continued emphasis on quality growth, RoRWA improvements, and capital strength.

• NIM expected to decline gradually; household loan growth limited to 2-3%, corporate loans targeted at 6-7%.

• SG&A expected to rise by about 4% due to higher education tax, with recurring growth managed at ~2%.

• CET1 ratio projected to remain stable, with possible slight decline but upward trend by Q3.

• 2026 capital return plan includes 1.2 trillion won share buyback and estimated 1.62 trillion won in dividends.