| Panoramic view of KB Financial Group (Photo = KB Financial Group) |
[알파경제=김혜실 기자] KB Financial announced performance that exceeded the expectations of the market. It re-proved its overwhelming profit and capital power.
In particular, with the early achievement of a total refund rate of 50% and overwhelming performance of KRW 3 trillion in refunds, warmth is expected to spread throughout the banking industry.
 |
| Source: KB Financial, Daishin Securities |
◇ Net profit for controlling shareholders in the fourth quarter was 721.3 billion won… exceeded the consensus
KB Financial Group’s net profit for controlling shareholders in the fourth quarter was KRW 721.3 billion, exceeding the consensus by 23.3%.
Net interest margin increased by 1bp, and won loans grew by 0.5%, resulting in a 1.0% increase in net interest income.
Non-interest income recorded over 1 trillion won despite seasonality. Core commission areas such as credit card, trust, and brokerage all increased, and sales valuation profit increased by 64% compared to the third quarter to KRW 730.9 billion.
Credit costs increased slightly, but this was due to the bank’s conservative accounting, and excluding this, the downward stabilization trend continued.
Choi Jeong-wook, a researcher at Hana Securities, said, “As we recognized a total penalty of KRW 333 billion in the fourth quarter (ELS KRW 263.3 billion, LTV KRW 69.7 billion), we estimate that uncertainty over the penalty has been almost resolved.” He added, “An increase in corporate tax cost of about KRW 84 billion due to the adjustment of deferred corporate tax due to the increase in the corporate tax rate, and a non-operating loss of about KRW 390 billion due to penalty recognition and bad bank contributions. Despite this, the annual net profit in 2025 exceeded 5.8 trillion won, and the ROE exceeded 10%.”
In particular, the annual profit of non-banking affiliates in 2025 increased by 4.5% to 2.3 trillion won, and the non-banking sector’s profit contribution is 36.9%, the highest level in the industry.
Kim Jae-woo, a researcher at Samsung Securities, predicted, “As we not only have a line-up of affiliates for all non-banking sectors but also possess top-ranking companies in major non-banking industries, we will be able to enjoy the advantages of economies of scale. In the mid- to long-term, this advantage is expected to continue as leverage can be used to strengthen non-banking, considering the current low debt ratio of KB Financial Holding Company.”
 |
| (Photo = Yonhap News) |
◇ “Concerns about downward pressure on capital ratio are limited”
Despite various deteriorating internal and external conditions, the CET1 ratio was 13.79%, a drop of only 4bp compared to the previous quarter, proving the company’s ability to manage its capital ratio.
In the first quarter, there is pressure to lower the capital ratio due to the increase in the lower limit of RWA for new mortgage loans in the industry to 20%, the introduction of Basel 3 transition regulations (step-by-step increase in the risk weight of stocks held by non-banks), and the full-scale expansion of productive finance.
Choi Jeong-wook, a researcher at Hana Securities, predicted, “However, considering KB Financial’s proven ability to manage the CET 1 ratio, there is no need to be very concerned. Since the second half of last year, bank stocks have been very sluggish and relatively weak compared to the KOSPI due to exchange rate rises and fine issues. Considering performance, capital ratio, and shareholder return scale, market interest may be reemerged.”
Kim Jae-woo, a researcher at Samsung Securities, said, “Considering the possibility of KB Financial’s performance improvement this year and the company’s ability to manage the RWA growth rate shown last year, we expect that the solid management of the differentiated CET-1 ratio will be sustainable. This is positive in the sense that it is the basis for ultimately differentiated shareholder return rates.”
 |
| KB Financial Stock Diagnosis (Source = Choice Stock) |
◇ Surprise dividend in the 4th quarter…Total return amount reached 3 trillion won
Based on its overwhelming profit strength and capital strength, KB Financial Group announced a proactive shareholder return policy that greatly exceeds market expectations, including paying a dividend of 1,605 won for the year 2025, deciding to cancel treasury stock purchases of 1.2 trillion won in the first half of 2026, and pursuing reduced dividends.
As a result, in 2025, the company achieved a total return rate of 52.4%, with share repurchase amount of 1.48 trillion won, cash dividends of 1.58 trillion won, and total refund amount of 3.06 trillion won.
In addition, the total cash dividend amount for 2026 is 1.62 trillion won, and the share purchase and cancellation amount of 1.2 trillion won by the first half of the year has been confirmed. The stock repurchase is scheduled to amount to 600 billion won per quarter.
Park Hye-jin, a researcher at Daishin Securities, said, “We have once again proven our reputation as the No. 1 company in the industry by achieving an overwhelming performance of 3.06 trillion won in total refunds and the three conditions for return, including early achievement of a 50% total return rate, separate taxation of dividend income, and scheduled shareholders’ general meeting resolution for reduced dividends.” She added, “We are still adhering to the existing policy of not limiting the upper end of the total return rate according to the CET1 ratio, and therefore, we are predicting market expectations for 2026 as in the 4th quarter. “There is room to expect an exceeding return amount,” he said.
Researcher Park said, “Compared to the top global banks such as the United States, Japan, and Taiwan, this is a move that is not lacking at all, and a valuation premium can be sufficiently given for this,” and predicted, “The premium will be further strengthened depending on the degree of ROE improvement in the future.”
Alpha Economy Reporter Kim Hye-sil (kimhs211@alphabiz.co.kr)
