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    Kim Joo • Samsung Securities

    Kim Joo's questions to KB Financial Group Inc (KB) leadership

    Kim Joo's questions to KB Financial Group Inc (KB) leadership • Q2 2025

    Question

    Kim Joo of Samsung Securities asked for clarification on the size and timing of the second-half shareholder return, how KB Financial Group plans to secure distributable profits for next year, and the reasons for higher-than-expected provisioning despite improved asset quality metrics. He also requested an update on the full-year credit cost ratio (CCR) guidance.

    Answer

    CFO Lars Hong Rook confirmed the second-half shareholder return size is KRW 850 billion, with KRW 190 billion to be executed early next year but attributed to 2025's return due to distributable profit limits. He stated that interim dividends from subsidiaries are being considered to secure future profits. The higher provisioning was due to a preemptive KRW 100 billion provision for real estate exposures. Management reiterated the full-year CCR guidance of a 'mid-forty basis point level,' barring unforeseen events, and assured that the deferred payout would not negatively impact next year's return potential.

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    Kim Joo's questions to KB Financial Group Inc (KB) leadership • Q2 2025

    Question

    Kim Joo of Samsung Securities asked for clarification on the size and timing of the second-half shareholder return, plans to secure future distributable profits, and the rationale behind Q2's higher-than-expected provisions despite improving asset quality metrics.

    Answer

    KBFG management confirmed the second-half shareholder return size is KRW 850 billion, with an additional KRW 190 billion from 2025's excess capital to be executed next year. To ensure future distributable profits, the company will utilize interim dividends from non-insurance subsidiaries. Management explained that Q2 provisions included a preemptive KRW 100 billion for real estate exposures but expects the full-year credit cost ratio (CCR) to stabilize in the mid-40 basis point range, signaling the peak has passed.

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