3Q25 Business Results October 2025 Disclaimer 1. The consolidated financial information of KB Financial Group Inc. (the "Group") presented herein is based on the Korean International Financial Reporting Standards(K-IFRS). It is currently being reviewed by the Group's independent auditor, and accordingly, is subject to change. 2. The consolidated financial information for 2022 and 2023 presented herein have been restated retrospectively based on the FSS's response to inquiry on Korean IFRS17(K-IFRS) 3. From ...

Group 1 - The analysis compares Exor N.V. and Porsche Automobil Holding SE, with a preference for Exor N.V. [1] - Exor N.V. recently reported its half-year results, indicating positive performance [1] Group 2 - The article emphasizes the importance of fundamental, income-oriented, long-term analysis in investment decisions [1]

Core Viewpoint - KB Financial Group Inc. is considered a quality investment in the financial sector, offering a valuation that appears discounted compared to its peers, indicating a potential value opportunity [1]. Group 1 - KB Financial Group Inc. is listed on the NYSE under the ticker KB [1]. - The company is recognized for its quality play within the financial sector [1]. - The current valuation of KB Financial Group is perceived as undeservedly discounted when compared to its competitors [1]. Group 2 - The analysis is conducted by Labutes IR, a fund manager and analyst with over 18 years of experience in the financial markets [1]. - The author has a background in various types of institutions within the industry, focusing on the buy side and portfolio management [1]. - The analysis is associated with the existing author known as The Outsider [1].

Core Viewpoint - KB Financial Group is identified as a strong value stock, currently holding a Zacks Rank 2 (Buy) and an A grade for Value, indicating it is likely undervalued in the market [4][9]. Valuation Metrics - KB Financial Group has a P/E ratio of 7.45, significantly lower than the industry average of 10.19, suggesting it is undervalued [4]. - The company has a PEG ratio of 0.63, compared to the industry average of 0.78, indicating favorable growth expectations relative to its price [5]. - KB's P/B ratio stands at 0.78, well below the industry average of 2.27, further supporting the undervaluation thesis [6]. - The P/S ratio for KB is 1.18, compared to the industry average of 1.67, reinforcing its position as a potentially undervalued stock [7]. - The P/CF ratio is 7.50, significantly lower than the industry average of 17.44, highlighting strong cash flow relative to its market value [8]. Earnings Outlook - The strength of KB Financial Group's earnings outlook, combined with its favorable valuation metrics, positions it as one of the market's strongest value stocks [9].

Financial Data and Key Metrics Changes - Q2 net profit reported at KRW 1,738.4 billion, with first half cumulative profit at KRW 3,435.7 billion, representing a 23.8% year-over-year increase [4][9] - Return on Equity (ROE) stands at 13.03%, with a Common Equity Tier 1 (CET1) ratio of 13.74% as of June [4][20] - Total shareholder return for 2025 is projected at KRW 3,100 billion, a significant year-over-year increase [6] Business Line Data and Key Metrics Changes - Noninterest income increased by 10.9% year-over-year, driven by higher performance in securities and derivatives [9][15] - First half net interest income posted at KRW 6,368.7 billion, with a net interest margin (NIM) of 1.73% [12][14] - Nonbank operations accounted for 39% of the group's first half net profit, indicating a diversified business portfolio [11] Market Data and Key Metrics Changes - Bank loans in won reached KRW 372 trillion, growing 2.4% year-to-date and 1.4% quarter-over-quarter [13] - Household loans totaled KRW 181 trillion, with mortgage and unsecured loans growing evenly [13] - Corporate loans reached KRW 191 trillion, primarily driven by large corporates and prime SMEs [13] Company Strategy and Development Direction - The company plans to focus on capital discipline, managing risk-weighted assets (RWA) with greater precision while ensuring shareholder return expansion [7][8] - Emphasis on maintaining a balance between ROE and capital ratio to ensure sustainable growth [8] - Plans to explore new business opportunities and enhance productivity through AI [16] Management's Comments on Operating Environment and Future Outlook - Management expects asset quality conditions to improve favorably due to government economic stimulus efforts [18] - Credit cost is anticipated to stabilize in the mid-forty basis points range for the second half of the year [30] - The company is optimistic about achieving meaningful improvements in asset quality by rebalancing nonperforming assets [19] Other Important Information - The company has committed to a proactive buyback strategy, with KRW 300 billion already executed in Q2 [4][5] - G&A expenses for the first half were KRW 3,355.3 billion, reflecting a 4.1% growth year-over-year [16] - The NPL ratio improved to 0.72%, with an NPL coverage ratio of 138.5% [19][20] Q&A Session Summary Question: Size of second half shareholder return and timing of share buyback - Management confirmed the second half shareholder return size is KRW 850 billion, with excess capital of KRW 190 billion allocated for future returns [22][25] Question: Confusion regarding provisioning levels despite improved asset quality metrics - Management explained that additional provisioning was made to ensure loss absorption capability, particularly in light of potential risks in the real estate sector [23][27] Question: Loan growth guidance in light of government measures to control household loans - Management indicated that household loan growth is expected to decelerate to about 3%, while corporate loans are projected to grow at 6% to 7% [36][37] Question: Potential interim dividend payout from subsidiaries - Management clarified that interim dividends from securities and brokerage subsidiaries are being considered, while insurance subsidiaries may not contribute this year [41] Question: PBR adjustment and its impact on dividend policy - Management stated that they are open to adjusting the mix between cash dividends and share buybacks based on PBR levels, with a range of 0.8x to 1x being considered [42][53]

Financial Data and Key Metrics Changes - Q2 net profit reported at KRW 1,738.4 billion, with first half cumulative profit at KRW 3,435.7 billion, representing a 23.8% year-over-year increase [4][9] - ROE for the first half stood at 13.03%, with a CET1 ratio of 13.74% as of June [4][19] - Total shareholder return for 2025 is projected at KRW 3,100 billion, a significant year-over-year increase [6] Business Line Data and Key Metrics Changes - First half net interest income posted KRW 6,368.7 billion, with a 4.8% quarter-over-quarter decrease due to temporary expenses from consolidated fund liquidation [12] - Noninterest income increased by 10.9% year-over-year, driven by improved performance in securities and derivatives [10][15] - Nonbank operations accounted for 39% of the group's first half net profit, indicating a diversified business portfolio [11] Market Data and Key Metrics Changes - Bank loans in won reached KRW 372 trillion, growing 2.4% year-to-date and 1.4% quarter-over-quarter [13] - Q2 bank NIM was reported at 1.73%, reflecting a contraction due to market rate cuts [14] - Group NPL ratio improved to 0.72%, with NPL coverage ratio at 138.5%, indicating strong loss absorption capacity [18] Company Strategy and Development Direction - The company plans to focus on capital discipline, managing risk-weighted assets with greater precision, and balancing ROE and capital ratio [7][8] - Emphasis on expanding shareholder returns and maintaining a commitment to transparency in shareholder return plans [6][7] Management Comments on Operating Environment and Future Outlook - Management expects asset quality conditions to improve in the second half due to government economic stimulus efforts [18] - The company anticipates credit costs to stabilize and potentially decrease, with a guidance of mid-forty basis points for the second half [30] Other Important Information - The company plans to implement interim dividend payouts from subsidiaries to secure distributable income for the upcoming year [26][42] - The group aims to enhance productivity through AI and explore new business opportunities while rationalizing costs [16] Q&A Session Summary Question: Size of second half shareholder return and plans for distributable profit - Management confirmed the second half shareholder return size at KRW 850 billion and discussed options for ensuring ample distributable profit [22][25][26] Question: Provisioning levels despite improved asset quality metrics - Management explained that provisioning levels were increased as a precautionary measure to ensure loss absorption capability [23][28][30] Question: Loan growth guidance in light of government measures - Management indicated that household loan growth is expected to decelerate to about 3%, while corporate loans are targeted for 6% to 7% growth [36][38] Question: Potential interim dividends from subsidiaries - Management clarified that interim dividends from securities and brokerage subsidiaries are being considered, while insurance subsidiaries may not contribute this year [40][42] Question: PBR and dividend policy adjustments - Management stated that adjustments to the cash dividend payout ratio will be considered based on PBR levels, with a range of 0.8x to 1x being discussed [33][43]

Financial Performance Highlights - KB Financial Group's 1H25 net profit reached ₩3.436 trillion, a 23.8% year-over-year increase[12, 17] - The Group's ROE for 1H25 was 13.03%, a 2.23%p increase year-over-year[8, 14] - Non-bank subsidiaries contributed 39% to the Group's net profit[16, 17] Shareholder Returns - The company plans a total shareholder return of ₩1.15 trillion, including a ₩850 billion share buyback and cancellation[8] - A proactive return of ₩300 billion was implemented in 2Q25[8, 11] - The CET-1 ratio as of June 2025 reached 13.74%[8, 11] Financial Analysis - Group net interest income slightly decreased by 0.4% year-over-year to ₩6.3687 trillion[24] - Group net non-interest income increased by 10.9% year-over-year to ₩2.7233 trillion[29] - Group G&A expenses increased by 4.1% year-over-year to ₩3.3553 trillion[35] Asset Quality - The Group's NPL ratio was 0.72%, with an NPL coverage ratio of 138.5%[48] - Provision for credit losses totaled ₩1.3107 trillion in 1H25, a 33.6% increase year-over-year[41] Subsidiary Performance - KB Kookmin Bank reported a net profit of ₩2.1876 trillion and an ROE of 11.63%[84] - KB Securities recorded a net profit of ₩338.9 billion and an ROE of 10.10%[87] - KB Insurance's net profit was ₩558.1 billion with an ROE of 20.51%[90]

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting the need for strong fundamentals to maintain momentum [1][2]. Group 1: Stock Performance - KB Financial (KB) has shown a solid price increase of 36.5% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 5.7% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, KB is trading at 85.5% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - KB Financial holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like KB that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are other stocks passing through this screen, providing additional investment opportunities [8].

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting that sound fundamentals and positive earnings revisions are crucial for maintaining momentum in stock prices [1][2]. Group 1: Stock Performance - KB Financial has shown a solid price increase of 47.2% over the past 12 weeks, indicating strong investor interest and potential upside [4]. - The stock has also increased by 9.3% in the last four weeks, suggesting that the upward trend is still intact [5]. - Currently, KB Financial is trading at 91.2% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - KB Financial holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for investors to identify stocks like KB Financial that are on an uptrend supported by strong fundamentals [3]. - The article suggests that there are several other stocks passing through this screen, providing additional investment opportunities for trend-focused investors [8].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: KB Financial - KB Financial currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy), indicating a favorable outlook for the stock [3][12]. - The stock has shown significant price performance, with a 4.29% increase over the past week, compared to a 0.88% increase in the Zacks Banks - Foreign industry [6]. - Over the past month, KB Financial's shares have increased by 17.55%, outperforming the industry's 2.79% [6]. - In the last quarter, KB Financial shares have risen by 42.35%, and over the past year, they have gained 37.52%, while the S&P 500 has only moved 8.49% and 13.75%, respectively [7]. Trading Volume - The average 20-day trading volume for KB Financial is 173,812 shares, which serves as a baseline for price-to-volume analysis [8]. Earnings Outlook - Recent earnings estimate revisions have been positive, with one estimate moving higher for the full year, increasing the consensus estimate from $10.40 to $10.67 over the past 60 days [10]. - For the next fiscal year, one estimate has also moved upwards, with no downward revisions during the same period [10].