Group 1: Company Overview - KB Financial Group was established in 2008 as a financial holding company, allowing for the reorganization of various businesses and subsidiaries under Kookmin Bank [2] - As of December 31, 2023, KB Financial Group had total assets of KRW 716 trillion, making it one of the largest financial holding companies in Korea [15] - The company operates an extensive banking network with 797 branches and serves approximately 37.6 million retail customers [3] Group 2: Financial Performance - KB Financial Group's net interest income has been steadily growing, reaching $9.4 billion in 2023 [6] - The company's EBIT margins have been rising over the past decade, indicating healthy financial performance [7] - The stock is currently trading at a forward PE ratio of approximately 6x, showing significant growth from previous years [8] Group 3: Shareholder Returns and Value Up Program - The Board of Directors has approved a quarterly cash payout of KRW 791 per share and a share buyback totaling KRW 400 billion, reflecting a commitment to enhancing total shareholder return [11] - The Value Up program aims to maximize shareholder value, with KB Financial Group actively participating and leading in this initiative [20][22] - The management's commitment to share buybacks and shareholder-friendly policies is expected to drive the company's valuation closer to its book value [26] Group 4: Market Context and Challenges - The "Korea Discount" refers to the historical undervaluation of South Korean companies due to weak corporate governance and low dividend payouts [36] - Recent government incentives and aligned management efforts are aimed at reducing this valuation gap, creating opportunities for value investors [12] - The Value Up program, inspired by successful initiatives in Japan, seeks to improve corporate valuations and attract investment [35]

Financial Data and Key Metrics - CET1 ratio increased by 17 basis points QoQ to 13.59%, the highest in the domestic market [1] - Q2 other operating profit posted KRW323.1 billion, a 19.5% QoQ increase, driven by improved financial market conditions and securities investment performance [2] - First half cumulative other operating profit was KRW593.5 billion, lower YoY due to interest rate and FX rate effects on securities, FX, and derivatives [2] - Q2 non-operating profit grew significantly QoQ due to the reversal of large-scale ELS provisioning in Q1 [3] - First half group net fee and commissions income increased 2.4% YoY to KRW1,909.8 billion, driven by higher stock transaction amounts and brokerage income [11] - Q2 group net fee income was KRW919.7 billion, slightly down QoQ due to a decline in IB fees from real estate PF market contraction [11] - Q2 provision for credit losses increased QoQ to KRW552.6 billion, mainly due to additional provisioning for real estate trust and conservative provisioning stance [12] - First half cumulative provision for credit losses decreased significantly YoY to KRW981 billion, reflecting preemptive large-scale provisioning in the previous year [12] - Q2 net interest income increased 9% YoY and 1.7% QoQ to KRW3,206.2 billion, driven by loan average balance growth and interest income expansion [23] - First half group net interest income was KRW6,357.7 billion [23] - Q2 group and bank NIM declined by 3 basis points QoQ to 2.08% and 1.84%, respectively, due to spread contraction and market interest rate decline [25] - First half group ROE was 10.78%, with recurring ROE (excluding one-offs) at 12.26% [24] - Q2 credit cost ratio was 43 basis points, slightly increased QoQ but remains stable [26] - First half group CIR was 36.4%, showing downward stabilization due to cost efficiency efforts [14] - First half G&A expenses increased 2% YoY to KRW3,222.1 billion, with Q2 G&A decreasing 2.1% QoQ [34] Business Line Performance - Insurance income increased KRW185.7 billion YoY in the first half, driven by non-life insurance IBNR reserve reversal and improved loss ratios [2] - Bank loans in won grew 2.3% QoQ and 2.9% YTD to KRW352 trillion, with loan demand recovering in Q2 [13] - Household loans increased 3.0% YTD to KRW172 trillion, driven by home transaction increases [74] - Corporate loans increased 2.7% YTD, supported by large corporate loans and moderate SME loan growth [74] Market Performance - Banking sector prices showed strength due to high expectations for the value-up program [10] - Real estate PF market contraction impacted IB fees and provisioning [11][12] Company Strategy and Industry Competition - The company is committed to a progressive dividend policy and enhancing shareholder returns through share buybacks and cancellations [1][9][21] - The company plans to maintain a CET1 ratio at 13.5% and improve capital adequacy to enhance shareholder return visibility [80] - The company is focusing on cost efficiency and labor cost reduction to stabilize CIR [22] - The company is preparing for value-up disclosures, focusing on capital ratio, ROE improvement, and shareholder value enhancement [44] Management Commentary on Operating Environment and Future Outlook - Macro uncertainties continue, but the company has ample capacity to respond with conservative provisioning and rigorous risk management [10] - The company expects to maintain stable credit costs and asset quality despite economic slowdown concerns [10][12] - The company plans to focus on qualitative growth in asset quality and profitability in the second half [74] - The company is cautious about the real estate PF market, with conservative provisioning and a focus on senior loans [43][77] Other Important Information - The company announced a quarterly cash payout of KRW791 per share and a KRW400 billion share buyback and cancellation, totaling KRW720 billion for shareholder returns [21] - The company has about 14 million treasury shares, with no plans to release them into the market [66] Q&A Session Summary Questions and Answers - **Question:** Will there be changes in the value-up disclosure? **Answer:** The company is implementing measures under the value-up program, including quarterly dividends and share buybacks, but has not yet made the disclosure [17] - **Question:** Will shareholder return calculations shift to a calendar basis? **Answer:** The company will integrate shareholder return calculations on a calendar basis going forward [30][82] - **Question:** What is the outlook for NIM and defensive strategies against interest rate declines? **Answer:** The company expects NIM to remain flat YoY and will focus on core deposit growth and funding cost management [31][63][65] - **Question:** What is the status of asset quality and provisioning for real estate PF? **Answer:** The company has accumulated sizable provisioning and maintains a conservative stance, with senior loans accounting for over 95% of property loans [42][43][77] - **Question:** What is the expected credit cost for the year? **Answer:** The recurring credit cost is around 40 basis points, with conservative provisioning in place [68] - **Question:** Will there be additional shareholder returns beyond the KRW720 billion announced? **Answer:** The company plans to gradually increase shareholder returns and will decide on additional measures based on the situation [81] - **Question:** What is the appropriate level of coverage ratio for NPLs? **Answer:** The company considers 130%-140% as an appropriate coverage ratio, depending on the macro environment [58][79]

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. Looking at this fiscal year, KB expects sol ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of ...

NoonBuSin/iStock via Getty Images Elevator Pitch KB Financial Group Inc. (NYSE:KB) [105560:KS] shares are awarded a Buy investment rating. I previously wrote about KB's new CEO appointment and regulatory developments relating to South Korea's financial services industry in my October 5, 2023 update. This latest write-up highlights KB Financial's valuation re-rating potential that supports a Buy rating for the stock. Investors are getting more interested in Korean banks, and KB intends to reveal its value en ...

As filed with the Securities and Exchange Commission on April 26, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition peri ...

Financial Data and Key Indicator Changes - KB Financial Group's net income attributable to controlling interest for Q1 2024 was KRW1,049.1 billion, down 30.5% year-over-year [5] - Group net interest income for Q1 2024 was KRW3,151.5 billion, an increase of 11.6% year-over-year, but a slight decrease of 1.0% quarter-over-quarter [6] - Group ROE for Q1 2024 was 8.15%, while the recurring ROE, excluding one-off items, was 12.18% [18] - Group CIR for Q1 2024 stood at 36.9%, showing a steady downward trend [19] Business Line Data and Key Indicator Changes - Q1 group net fee and commissions income was KRW990.1 billion, up 8.3% year-over-year and 9.2% quarter-over-quarter, driven by increased securities fee income and card fee income [16] - Other operating profit for Q1 was KRW270.4 billion, decreasing KRW366.2 billion year-over-year but increasing by KRW762.8 billion quarter-over-quarter [28] Market Data and Key Indicator Changes - Bank loans in won at the end of March 2024 were KRW344 trillion, growing 0.6% year-to-date, with household loans at KRW167 trillion and corporate loans at KRW177 trillion [30] Company Strategy and Development Direction - The company aims to maintain a CET1 ratio of at least 13.5% by year-end to enhance future shareholder returns [3] - A new shareholder return policy was introduced, featuring evenly paid quarterly dividends and a target of maintaining or increasing annual cash dividends to at least KRW1.2 trillion [12][13] Management Comments on Operating Environment and Future Outlook - Management acknowledged the impact of heightened global security risks and exchange rate fluctuations on future economic uncertainties [3] - The company expects limited potential for rapid increases in credit costs due to previously secured loss absorption capabilities [8] Other Important Information - Provision for credit losses in Q1 was KRW428.4 billion, down 35.9% year-over-year and down 68.9% quarter-over-quarter [15] - The company plans to actively buy back and retire shares to enhance dividend per share [24] Q&A Session Summary Question: What are the expectations regarding the shareholder return policy? - The company plans to maintain a cash dividend of around KRW300 billion per quarter and aims to gradually increase the shareholder return rate through share buybacks and cancellations [13][24] Question: How does the company view the current economic environment? - Management expressed concerns about global security risks and exchange rate fluctuations but emphasized the importance of maintaining capital competitiveness [3]

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a me ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of March 2024 Commission File Number: 000-53445 KB Financial Group Inc. (Translation of registrant's name into English) 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports unde ...

Financial Data and Key Metrics Changes - In Q3 2023, net profit was reported at KRW1,373.7 billion, reflecting an 8.4% decrease quarter-on-quarter due to financial market volatility and reduced other operating income [3] - Group's net interest income for Q3 2023 was KRW3,087.9 billion, up 3.8% quarter-on-quarter, driven by loan growth [4] - Cumulative ROE for the year was 11.7%, with annualized EPS reported at approximately KRW14,691, an 8.3% year-over-year increase [13] Business Line Data and Key Metrics Changes - Net fee and commission income for Q3 was KRW901.4 billion, down 5.3% quarter-on-quarter [4] - Q3 G&A expenses were KRW1,564.7 billion, showing a slight decrease quarter-on-quarter due to cost rationalization efforts [5] - Other operating profit showed a loss of KRW23.1 billion in Q3, impacted by higher market rates and a one-off loss of around KRW71 billion from insurance operations [16] Market Data and Key Metrics Changes - Bank loans in won increased to KRW336 trillion as of September 2023, up 1.8% compared to late June [6] - Corporate loans increased by approximately KRW5 trillion, with large corporate loans rising by 8.9% compared to end June [6] - Group's NPL ratio as of September 2023 was 0.48%, up 4 basis points from the end of June [14] Company Strategy and Development Direction - The company aims to maintain a progressive dividend payout policy, emphasizing shareholder returns through both cash dividends and share buybacks [9][31] - The management is focused on maintaining a conservative provisioning policy to mitigate potential economic shocks and sustain stable net profit generation [66] - The company is actively managing asset quality by strengthening management of potential non-viable exposures [17] Management's Comments on Operating Environment and Future Outlook - Management expects Q4 NIM to remain stable, despite ongoing downward pressure from funding costs [7][34] - The company anticipates that full-year 2023 group credit cost will not exceed 50 basis points, reflecting a conservative approach to provisioning [14] - Management expressed confidence in the company's ability to manage risks associated with overseas real estate investments, indicating a low likelihood of losses [28] Other Important Information - The company reported a cumulative credit cost of 52 basis points for Q3, reflecting a conservative provisioning stance against economic uncertainties [66] - The estimated group BIS ratio as of late September was 16.76%, with a CET1 ratio of 13.70% [71] - The company plans to implement changes to its dividend policy in line with potential regulatory updates by the end of the year [29] Q&A Session Summary Question: Dividend payout policy changes - The CFO confirmed that the company will continue to adopt a progressive dividend payout policy [9][31] Question: Concerns about overseas real estate investments - Management reassured that the company has substantial loss absorption capability and is closely monitoring the situation [50] Question: Future dividend confirmations and government policy changes - The company is working to reflect improved government policies for dividends starting from Q1 of next year [29][51] Question: Additional provisioning for Q4 - Management indicated that the previous guidance for provisioning remains unchanged despite potential economic fluctuations [36] Question: Share buyback routine - The company is considering making share buybacks a routine practice, aligning with shareholder return policies [57]