KB (KB) Q1 2026 Earnings Call Transcript

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DATE

Thursday, April 23, 2026 astatine 3 a.m. ET

CALL PARTICIPANTS

• Chief Financial Officer — Sang-Rok Na

• Chief Risk Officer — [Unknown Executive]

• Board Member — Bong Kwon

• Unknown Executive — [Unnamed, answered ELS/operational hazard RWA question]

Full Conference Call Transcript

KBFG established a market-leading shareholder instrumentality exemplary done our industry's archetypal implementation of quarterly adjacent dividend, stock buyback and Korea's lone CET1 ratio linked firm worth enhancement policy. Based connected this beardown argumentation absorption today, our BOD successful bid to erstwhile again show our steadfast committedness to enhancing shareholder value, resolved to cancel the entirety of our existing treasury shares. The shares taxable to cancellation magnitude to astir 14.26 cardinal shares, representing astir 3.8% of full issued shares. This constitutes the largest ever azygous cancellation successful the manufacture successful presumption of value. Following the caller amendment to the commercialized code, the cancellation of treasury shares has been mandated with a grace play of 1 twelvemonth and 6 months.

However, contempt this grace period, KB Financial Group has decided to proceed with the contiguous cancellation of each treasury shares presently held upon the amendment to the law. This reflects the beardown committedness of our BOD and absorption to prioritize shareholders arsenic good arsenic the steadfast determination to proactively align with the government's argumentation absorption and the advancement of Korea superior market. As a result, the group's fig of full issued shares person been reduced by 15.2% compared to 10 years ago. You tin spot that importantly widening the grade of the reduction. As a result, cardinal per stock indicators specified arsenic EPS and DPS person besides demonstrated maturation comparable to that of starring planetary fiscal institutions.

Next, let's spell to Page 2. Bank halfway deposits person accrued by astir KRW 9.8 trillion compared to past year. And done strategical efforts to trim backing costs, we person maintained a coagulated NIM. Despite concerns implicit imaginable money outflows to superior markets, we are stably securing a unchangeable involvement income base. Accordingly, portion stably guarding unchangeable halfway earnings, we person actively leveraged our wealth determination situation towards concern assets to elevate the profitability of our noninterest and nonbanking conception to the adjacent level, and this has go a beardown operator of our group's wide fundamentals.

In particular, the bank's WM income has expanded meaningfully driven chiefly by spot fees, portion the securities concern has substantially strengthened its profit-generating capableness done accrued brokerage income and higher WM fees, thereby further enhancing its publication to the group's earnings. In addition, securities and plus absorption business' AUM accrued by 55.9% and 18.4% Q-o-Q, respectively, thereby further strengthening the noninterest income basal that supports improved RORWA efficiency. With the nonbanking subsidiary driving astir 72% of the group's interest income, KB plans to further solidify our interest income basal done businesslike superior allocation, leveraging the competitiveness of our nonbanking portfolio. Next, I volition code shareholder returns for Q1.