KB Financial Group(US:KB)2024-04-26 07:03Financial 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]