KB Financial Group (A105560) Q4 2025 earnings summary

Executive summary

• 2025 saw record net profit of 5.85 trillion won, up 15.1% year-on-year, driven by robust non-interest income, stable interest income, and strong risk management amid market volatility.

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

• Shareholder returns reached a record 52.4%, with 1.58 trillion won in dividends and 1.48 trillion won in share buybacks.

• Non-bank subsidiaries contributed significantly to group profit and fee income, reflecting a well-balanced business profile.

• Net operating income for the year was 8.53 trillion won.

Financial highlights

• Net profit for 2025 reached 5.85 trillion won, up 15.1% year-on-year, with net interest income at 13.07 trillion won and non-interest income at 4.87 trillion won.

• Total cash dividends for 2025 amounted to 1.58 trillion won, a 32% increase year-on-year, with dividend per share up 37.6%.

• SG&A expenses increased only 1.6% to 7.05 trillion won, resulting in a record-low CIR of 39.3%.

• Provision for credit losses rose 15.6% to 2.36 trillion won, reflecting conservative risk management.

• Basic EPS was 15,437 won, up 20% year-on-year.

Outlook and guidance

• 2026 will focus on corporate loan-centered growth, productive finance, and portfolio diversification, with household loan growth limited by policy.

• NIM is expected to gradually decline but remain in the low- to mid-single-digit range.

• SG&A projected to grow by about 4% due to increased education tax, with recurring growth managed around 2%.

• CET1 ratio expected to remain stable, with a possible slight decline but an upward trajectory by Q3.

• Flexible shareholder return policy will continue, with potential for further dividend increases.