Shim Jongmin

Shim Jongmin from CLSA Securities asked for the year-end CET1 ratio target and how it connects to shareholder return policy, particularly regarding a potential larger buyback in Q4 if the target is exceeded.

Answer

CFO Sang-Hyuk Jung stated that the target CET1 ratio is 13%, which serves as a threshold. He confirmed that if the ratio surpasses 13% (with an appropriate buffer), the company will actively consider additional shareholder returns, such as share cancellations, and this would be the basis for any potential action in the fourth quarter.

Shim Jongmin from CLSA inquired about the management's target valuation, such as PBR, that would trigger an increase in the total dividend amount, and asked for the company's mid- to long-term target for the total shareholder return (TSR) ratio.

Answer

CFO Jae Kwan Kim stated that the management is thinking of a target valuation around a 10% ROE and a 0.8x PBR. He reiterated the mid- to long-term policy is to gradually increase shareholder returns through incremental DPS growth and share buybacks, rather than targeting a specific TSR ratio. He added that any increase in the total cash dividend amount would depend on favorable circumstances, not an absolute standard.