KB Financial Group Inc (KB) 2022 Q4 法說會逐字稿

Greetings. I am Peter Kweon, the Head of IR at KBFG. We will now begin the 2022 Annual Business Results Presentation. I would like to express deepest gratitude to everyone for participating today. We have here with us our group CFO and SEVP, Scott YH Seo, as well as other members from our group management.

問候。我是 KBFG 的 IR 主管 Peter Kweon。我們現在將開始 2022 年年度業務結果演示。我要對今天參加的每一個人表示最深切的感謝。我們的集團首席財務官和 SEVP Scott YH Seo 以及集團管理層的其他成員都在這裡。

We will first hear the 2022 annual major financial highlights from our CFO and SEVP, and then have a Q&A session. I would like to invite our SEVP and CFO, to deliver 2022 annual earnings results.

我們將首先聽取 CFO 和 SEVP 的 2022 年度主要財務亮點，然後進行問答環節。我想邀請我們的 SEVP 和 CFO 來提供 2022 年的年度收益結果。

Good afternoon. I'm Scott YH Seo, CFO of KBFG. Thank you for joining the company's annual 2022 earnings presentation. Before looking at the details of the income statement, I will briefly run through the highlights of business performance and key indicators of the group. KBFG's FY '22 net profit was KRW 4,413.3 billion, flat year-over-year but has underperformed market expectations or the consensus estimates of the analysts. EPS for '22 was KRW 11,200, 1.2% year-over-year, and ROE on common stock basis was 9.9%. As CFO, it's regretful to have to announce results that fall short of expectations of shareholders and investors.

下午好。我是 KBFG 的首席財務官 Scott YH Seo。感謝您參加公司 2022 年年度收益演示會。在查看損益表詳情之前，我將簡要介紹一下集團的經營業績亮點和主要指標。 KBFG 的 FY '22 淨利潤為 44,133 億韓元，同比持平，但表現不及市場預期或分析師的普遍預期。 '22 的每股收益為 11,200 韓元，同比增長 1.2%，普通股淨資產收益率為 9.9%。作為首席財務官，很遺憾不得不宣布低於股東和投資者預期的業績。

Biggest reason why we fell short of market expectations in '22 net profit is due to preemptive provisioning based on conservative FLC, forward-looking criteria. For 3 years up to '22 with the outbreak and spread of COVID-19 and living with COVID, experiences which no one expected drove sense of instability and brought uncertainties to global economy and the financial markets, which heightened concerns. We expect macro uncertainties to grow this year globally and the signals for recession in the domestic economy across consumption, investment and exports are becoming more visible, building on the concern over rise in delinquency ratio and NPL ratio.

我們在 22 年的淨利潤中未達到市場預期的最大原因是基於保守的 FLC、前瞻性標準的先發製人撥備。在 22 年之前的 3 年裡，隨著 COVID-19 的爆發和傳播以及與 COVID 的共存，沒有人預料到的經歷會帶來不穩定感，並給全球經濟和金融市場帶來不確定性，這加劇了人們的擔憂。我們預計今年全球宏觀不確定性增加，國內經濟在消費、投資和出口方面的衰退信號越來越明顯，基於對拖欠率和不良貸款率上升的擔憂。

At KBFG, to thoroughly prepare against such event, we adopted a more conservative FLC future -- forward-looking criteria versus previous years. Preemptive provisions for domestic operations in '22, reflecting conservative FLC was KRW 242 billion, up more than 30% year-over-year. This is to secure ample room if and when credit risks heighten.

在 KBFG，為了徹底應對此類事件，我們採用了更保守的 FLC 未來——與前幾年相比具有前瞻性的標準。 22 年國內業務的優先準備金反映了保守的 FLC 為 2420 億韓元，同比增長超過 30%。這是為了在信用風險升高時確保充足的空間。

Next, provisions for overseas banks who we acquired that we set aside in Q4 on a consolidated basis was 570 billion and was 382 billion on an equity holding basis. Although local supervisors continue to operate COVID-19-related forbearance program to prepare for possible deterioration once the program ends, KBFG decided to provision preemptively based on our own credit assessment principles. This additional provisioning done for domestic and overseas was under a conservative approach to enhance forward-looking projections, and as such, there will not be such a large-scale provisioning for overseas operations in the future. In such preemptive provisioning was absent, 2020 group net profit would have been KRW 4,971 billion, which is on par or above market expectations. Common equity-based ROE would have been 11.1%, highest ever in the past decade.

其次我們收購的境外銀行4季度合併計提5700億元，持股計提3820億元。儘管當地監管機構繼續實施與 COVID-19 相關的寬容計劃，為計劃結束後可能出現的惡化做準備，但 KBFG 決定根據我們自己的信用評估原則預先撥備。本次對境內外的計提是保守的做法，以增強前瞻性，因此未來不會對海外業務進行如此大規模的計提。在沒有這種預提撥備的情況下，2020 年集團淨利潤將達到 49,710 億韓元，與市場預期持平或高於預期。基於普通股的股本回報率為 11.1%，是過去十年來的最高水平。

This level of earnings for the group has yet again proven our solid fundamentals even under difficult and uncertain financial market and the overall economy.

即使在困難和不確定的金融市場和整體經濟下，該集團的盈利水平再次證明了我們穩固的基本面。

Drag from securities and trading has been offset by stronger performances from traditional lending and deposit taking of the bank and the P&C insurance business. Q4 consolidated net profit was KRW 385.4 billion. Net profit saw a big decline Q-on-Q due to seasonal one-off factors, including ERP and preemptive and additional provisioning. But excluding such impact, on a running basis, net profit reported around KRW 1.2 trillion keeping to our solid earnings capacity.

銀行和財產保險業務的傳統貸款和存款業務的強勁表現抵消了證券和交易業務的拖累。第四季度合併淨利潤為 3854 億韓元。由於季節性一次性因素，包括 ERP 和提前及額外準備金，淨利潤環比大幅下降。但排除此類影響，按連續計算，淨利潤約為 1.2 萬億韓元，保持了我們穩健的盈利能力。

Next, group's 2022 credit cost on a consolidated basis was 43 basis points against total loans. On preemptive provisioning for domestic and overseas, group credit cost showed steep rise in '22. But excluding this impact, credit cost on a recurring basis reported 26 basis points, staying within a steady level. Also, NPL coverage ratio as of end of '22 on a domestic operations basis was up 7 percentage points year-to-date to 216%. Considering industry top NPL coverage, I believe KBFG has sufficient buffer to fend off possible domestic and global uncertainties that may emerge in the future.

接下來，集團 2022 年綜合信貸成本佔貸款總額的 43 個基點。在境內外預提撥備方面，22 年集團信貸成本急劇上升。但排除這一影響，經常性信貸成本報告了 26 個基點，保持在穩定水平。此外，截至 22 年底，國內業務的不良貸款覆蓋率今年迄今上升了 7 個百分點，達到 216%。考慮到行業最高的不良貸款覆蓋率，我相信 KBFG 有足夠的緩衝來抵禦未來可能出現的國內和全球不確定性。

Lastly, KBFG's BOD today approved a resolution to increase shareholder return rate up by 7 percentage points versus last year to 33%. In more detail, '22 cash dividend payout ratio was decided at 26%. On top of which, there will be KRW 300 billion of share buyback and cancellation.

最後，KBFG 的董事會今天批准了一項決議，將股東回報率比去年提高 7 個百分點，達到 33%。更詳細地說，'22現金股利支付率被定為26%。除此之外，還將進行3000億韓元的股票回購和註銷。

Also, including KRW 1,500 of quarterly dividend already paid out, EPS for FY '22 was 2,951 marginally up from 2,941 last year. We will start buying treasury shares starting tomorrow, and it will last for 3 months. And immediately following the end of that period, those treasury shares will be canceled. I will go into more details on the capital management plan, including dividend policy on the very last page of the presentation.

此外，包括已經支付的 1,500 韓元季度股息，22 財年的每股收益為 2,951，略高於去年的 2,941。我們從明天開始開始買庫存股，持續3個月。在那段時間結束後，這些庫存股將立即被註銷。我將在演示文稿的最後一頁詳細介紹資本管理計劃，包括股息政策。

Next, I will go into more detail on each of the line items. FY '22 Group's net interest income was KRW 11,381.4 billion up 18.9% year-on-year, while Q4 was KRW 3,042.2 billion, up 5% Q-on-Q, driving performance improvement backed by solid loan growth and repricing of the loan book on rise in interest rates, which continue to drive up NIM.

接下來，我將詳細介紹每個項目。 22 財年集團的淨利息收入為 113,814 億韓元，同比增長 18.9%，而第四季度為 30,422 億韓元，環比增長 5%，在穩健的貸款增長和貸款賬簿重新定價的支持下推動業績改善利率上升，繼續推高 NIM。

Next, group's net fees and commission income for FY '22 was around KRW 3.3 trillion. On depressed stock market, trading volume fell driving down brokerage fee income from the securities business by 45% year-over-year. And a sluggish financial product sales, the bank's trust and fund sales also posted a decline, bringing a 0.4% year-over-year decline. However, despite difficult operational backdrop, both internal and external, thanks to the Group's continuing efforts behind business diversification and stronger competitiveness, fee and commission income has been above KRW 3 trillion for 2 consecutive years, attesting to robust earnings capacity. Group's IB fee income was up around 18% year-over-year, further broadening its market dominance.

接下來，集團 22 財年的淨費用和佣金收入約為 3.3 萬億韓元。在股市低迷的情況下，成交量下降導致證券業務的經紀佣金收入同比下降45%。在金融產品銷售不景氣的情況下，該行的信託基金銷售也出現下滑，同比下降0.4%。然而，儘管經營環境困難重重，但得益於集團不斷努力實現業務多元化和增強競爭力，手續費和佣金收入連續2年超過3萬億韓元，證明了強勁的盈利能力。集團的 IB 手續費收入同比增長約 18%，進一步擴大了其市場主導地位。

Net fee commission income for the fourth quarter was 717.9 billion. On the back of deepening down trend in trading volume, brokerage fee income fell and due to seasonal volatilities, IB fee income also contracted, lowering Q4 number down by approximately 12% Q-on-Q.

第四季度手續費佣金淨收入為7179億元。在交易量下降趨勢加深的背景下，經紀費收入下降，並且由於季節性波動，IB 費用收入也收縮，使第四季度的數字環比下降約 12%。

Next is other operating profit. Group's other operating profit for FY '22 was KRW 309.6 billion, showing a significant year-over-year decline, overall displaying underperformance. This is because of steep rate hikes. There were greater losses from bond investment. While due to FX rise and stock market declines, there was underperformance from securities and derivatives and FX. However, other operating profit for Q4 was at KRW 196.3 billion, which is an improvement by a large margin versus last year. This is despite around 93 billion of valuation losses from securities investment.

其次是其他營業利潤。集團22財年的其他營業利潤為3096億韓元，同比大幅下滑，整體表現不佳。這是因為利率急劇上升。債券投資虧損較大。雖然由於外匯上漲和股市下跌，證券和衍生品以及外匯表現不佳。然而，第四季度的其他營業利潤為 1,963 億韓元，與去年同期相比大幅提高。儘管證券投資造成了約 930 億美元的估值損失。

And on falling $1 exchange rate and bond yield, the bank saw a large improvement in securities and derivative FX-related earnings of around 425.5 billion Q-on-Q and base effect from insurance subsidiaries subpar performance due to previous quarter's seasonality has been removed, while loss ratio of non-life business improved, driving up insurance income by around 34% Q-on-Q.

在匯率和債券收益率下降 1 美元的情況下，該銀行的證券和衍生外匯相關收益大幅改善，環比約為 4255 億美元，並且由於上一季度的季節性因素，保險子公司業績不佳的基數效應已被消除，而非壽險業務的賠付率有所改善，帶動保險收入環比增長約 34%。

Next, I will cover group G&A expenses. 2022 G&A expenses posted around KRW 7,537.8 billion. This was an increase of about 4.7% compared to the previous year. And despite the increase in the size and cost of ERP in a situation, where the group's digitalization-related investment is expanding, thanks to company-wide cost management efforts and efforts to improve the efficiency of the workforce structure, training is being well managed. On the other hand, Q4 G&A expenses posted KRW 2,357.7 billion and due to seasonal factors, including around KRW 316 billion of ERP costs, it decreased significantly Q-o-Q.

接下來，我將支付集團 G&A 費用。 2022 年 G&A 費用約為 75,378 億韓元。與前一年相比，增長了約 4.7%。儘管在 ERP 的規模和成本增加的情況下，該集團與數字化相關的投資正在擴大，但由於全公司的成本管理努力和提高勞動力結構效率的努力，培訓得到了很好的管理。另一方面，第 4 季度 G&A 費用為 23,577 億韓元，由於季節性因素，包括約 3,160 億韓元的 ERP 成本，環比大幅下降。

The following is the group provision for credit losses. 2022 Q4 group's consolidated provision for credit losses amounted to KRW 1,060.7 billion, a significant increase compared to the previous quarter. As mentioned earlier, this was on the back of preemptive large-scale additional provisioning. And excluding this, provisioning amount on a recurring level posted around a KRW 370 billion level. On the other hand, the amount of provision for credit losses on a consolidated basis in 2022 posted KRW 1,835.9 billion, excluding one-off items such as preemptive accumulation of additional loan loss provisions on a recurring basis has posted about KRW 1.1 trillion.

以下為集團信用損失準備。 2022年Q4集團綜合信用損失準備金為10607億韓元，較上一季度大幅增加。如前所述，這是在先發製人的大規模額外供應的支持下進行的。除此以外，經常性水平的撥備金額約為 3700 億韓元。另一方面，2022 年綜合信用損失準備金額為 18,359 億韓元，不包括預先累計額外貸款損失準備的一次性項目約為 1.1 萬億韓元。

On the next page, I will cover key financial indicators. First, the group profitability in the upper left corner. As mentioned earlier, the group ROE in 2022 posted 9.9%. Next, looking at the bank loans in the growth graph in the middle, as of end 2022, bank loans in won posted KRW 329 trillion, an increase by 3.1% YTD and maintained a similar level compared to late September. Among the loans, corporate loans posted KRW 163 trillion. And SME SOHO and large corporate loans all had balanced growth. And on the back of this, it grew 9.4% YTD and realized a sound growth trend. On the other hand, corporate loans decreased slightly by 0.2% compared to the end of September, and this was due to decrease in SOHO loan demand due to rising loan interest rates and economic slowdown and also due to overall year-end debt recovery increased, including large corporations.

在下一頁，我將介紹主要的財務指標。首先，左上角的集團盈利能力。如前所述，集團2022年淨資產收益率為9.9%。接下來，從中間增長圖中的銀行貸款來看，截至 2022 年底，以韓元計價的銀行貸款為 329 萬億韓元，年初至今增長 3.1%，與 9 月底持平。在這些貸款中，企業貸款達 163 萬億韓元。而中小企業SOHO和大企業貸款均實現均衡增長。在此背景下，年初至今增長了 9.4%，實現了良好的增長趨勢。另一方面，企業貸款較9月末小幅下降0.2%，這是由於貸款利率上升和經濟放緩導致SOHO貸款需求下降，以及年底整體債務回收增加，包括大公司。

On the other hand, household loans recorded KRW 166 trillion, and due to steep rise in loan interest rates and influence of loan regulations, it decreased by about 2.4% YTD centering on unsecured loans. However, with a 0.2% growth Q-on-Q, there was a slight stabilization of household loans, which have been declining throughout the year, and in particular, housing loans due to increased real demand just in Q4 increased by about KRW 1.7 trillion.

另一方面，家庭貸款錄得 166 萬億韓元，由於貸款利率急劇上升和貸款監管的影響，以無抵押貸款為中心，年初至今減少了約 2.4%。然而，環比增長 0.2%，家庭貸款略有穩定，全年一直在下降，特別是由於實際需求增加，住房貸款僅在第四季度就增加了約 1.7 萬億韓元.

Next, I will cover the net interest margin. 2022 Q4 group and bank NIM recorded 1.99% and 1.77%, respectively, and improved by 1 bp Q-o-Q. Bank NIM due to increase in core deposits and increase in term deposits led to funding cost burden increase, and had a limited expansion until Q3 of the previous year, but with the still continued loan asset repricing effect the overall improvement trend is continuing. On the other hand, regarding Group and bank 2022 annual NIM with steady loan asset repricing reflecting interest rate increase as a result of profitabilities. And third, loan portfolio management and efforts to enhance managed asset yields, there was a 13 bp and 15 bp sizable increase Y-o-Y, respectively, and led the group's interest income expansion.

接下來，我將介紹淨息差。 2022年Q4集團和銀行NIM分別錄得1.99%和1.77%，環比提高1個基點。銀行淨息差因核心存款增加和定期存款增加導致資金成本負擔增加，上年三季度擴張有限，但隨著貸款資產重定價效應仍在持續，整體改善趨勢仍在延續。另一方面，關於集團和銀行 2022 年的淨息差，穩定的貸款資產重新定價反映了盈利能力導致的利率上升。第三，貸款組合管理和提高管理資產收益率的努力，分別同比大幅增長 13 個基點和 15 個基點，並帶動了集團的利息收入擴張。

Let's go to the next page. First, I will cover group cost efficiency. 2022 group CIR recorded 50.2%. And despite the expansion of the group's ERP volume on the back of solid growth in core earnings there was only a slight increase Y-o-Y. Recurring CIR is being managed at a stable level at 46.7%, excluding one-off items, including ERP and digitalization costs. Going forward, we will continue to strengthen our top line profit generation capabilities. And through group-wide cost management efforts, we will further improve the group's cost efficiency.

讓我們轉到下一頁。首先，我將介紹集團成本效率。 2022年集團CIR錄得50.2%。儘管在核心收益穩健增長的支持下，該集團的 ERP 業務量有所擴大，但同比僅略有增長。經常性 CIR 管理在 46.7% 的穩定水平，不包括一次性項目，包括 ERP 和數字化成本。展望未來，我們將繼續加強我們的營收盈利能力。通過全集團的成本管理，我們將進一步提高集團的成本效率。

Finally, I would like to cover the group's capital ratio. As the end of 2022, group's BIS ratio posted 16.16%. CET1 ratio recorded 13%, 2.5% and we are maintaining the industry's highest level robust capital adequacy against economic slowdown and macro uncertainty. In particular, for the BIS ratio, despite the corporate loan center growth, rise in exchange rate and stock price decline leading to RWA increase, on the back of capital management efforts, including hybrid bond issuance and flexible positioning strategy, rose 39 bp YTD.

最後，我想談談集團的資本比率。截至2022年底，集團BIS比率為16.16%。 CET1 比率分別為 13% 和 2.5%，我們在經濟放緩和宏觀不確定性的情況下保持行業最高水平的穩健資本充足率。特別是，對於 BIS 比率，儘管公司貸款中心增長，匯率上漲和股價下跌導致 RWA 增加，但在包括混合債券發行和靈活定位策略在內的資本管理努力的支持下，年初至今上漲了 39 個基點。

On this page, I would like to cover KB Financial Group's mid- to long-term capital management plan. The domestic financial market in 2022 had a rapid change in the macro environment, including steep rise in the key interest rate, sharp rise in $1 exchange rate and expansion of global inflation. In the industry overall, there was greater interest and concern about loss absorption capability against the economic shock, in other words, capital ratio and adequacy. Accordingly, KB Financial Group while increasing the group's capital ratio and managing it at a stable level to respond to economic shocks that may occur in the future, we'll expand shareholder value and pursue a continuous shareholder return policy. And to this end, we established a mid- to long-term capital management plan for the group.

在此頁面上，我想介紹 KB Financial Group 的中長期資本管理計劃。 2022年國內金融市場宏觀環境變化較快，關鍵利率大幅上行，1美元匯率大幅上漲，全球通脹擴大。在整個行業中，人們更加關注和關注抵禦經濟衝擊的損失吸收能力，即資本充足率和充足性。因此，KB金融集團在提高集團資本比率並將其穩定管理以應對未來可能發生的經濟衝擊的同時，我們將擴大股東價值並追求持續的股東回報政策。為此，我們制定了集團中長期資本管理規劃。

To this end, in early December 2022, after deriving KB Financial Group's optimal capital structure based on robust capital capability and abundant liquidity, our management plan was established. After this, through in-depth consideration and sufficient discussion between the management and the BOD, we came out with a capital management plan that takes into account complex factors, including appropriate capital ratio, asset growth rate and shareholder return policy.

為此，2022 年 12 月上旬，在推導出 KB 金融集團基於穩健的資本能力和充裕的流動性的最佳資本結構後，制定了我們的管理計劃。在此之後，經過管理層和董事會的深入考慮和充分討論，我們得出了一個綜合考慮了複雜因素的資本管理方案，包括適當的資本比率、資產增長率和股東回報政策。

Please look at the right side of the page, and I will explain in detail about our mid- to long-term capital management plan. First, our CET1 ratio maintenance target is 13%. This will not only meet the 10.5% regulatory capital ratio or RRP basis but also as a result of the stress test reflecting a conservative scenario at the level of the IMF financial crisis, we found that if the group maintained a CET ratio of 13%, the group will secure a total of 250 BP management buffer.

請看右邊，我將詳細介紹我們的中長期資本管理計劃。首先，我們的CET1比例維持目標是13%。這不僅滿足 10.5% 的監管資本比率或 RRP 基礎，而且作為反映 IMF 金融危機級別保守情景的壓力測試的結果，我們發現如果集團保持 13% 的 CET 比率，該集團將獲得總共 250 個 BP 管理緩衝區。

Secondly, KB Financial Group will pursue Group's growth strategy from the perspective of shareholder value. Therefore, system growth, such as the nominal GDP growth rate, will be used as the basic benchmark, and we will pursue flexible capital allocation and asset growth strategies considering macroeconomic, regulatory environment and business objectives. In addition, with efficient asset management, we will make efforts to improve ROA and PBR in parallel.

其次，KB Financial Group將從股東價值的角度來實施集團的增長戰略。因此，我們將以名義GDP增長率等系統增長為基本基準，結合宏觀經濟、監管環境和經營目標，採取靈活的資本配置和資產增長策略。此外，通過高效的資產管理，我們將努力同步提高ROA和PBR。

Thirdly, after achieving the aforementioned asset growth target, if exceeding target CET1 ratio of 13%, as long as there are no changes in the supervisory regulatory environment or financial market volatility or special reason for the business purpose of the company, our principal will be to actively return to our shareholders.

第三，在實現上述資產增長目標後，如果超過目標CET1比例13%，只要沒有監管監管環境變化或金融市場波動或公司經營目的的特殊原因，我們的本金將是積極回報我們的股東。

Fourth, KB Financial group based on solid fundamentals and industry highest level capital strength while maintaining the cash dividend payout ratio and amount at a stable level. We'll utilize various shareholder return tools such as share buyback and cancellations and gradually increase our total shareholder return ratio. In order to continuously expand shareholder value, instability of dividends must be secured along with the expansion of shareholder return ratio. Each year, we plan to maintain at least the same level of DPS at the minimum at the same level as the previous year and gradually increase it so that we can provide stable payout to our shareholders. If KBFG's valuations, absolute and relative discounted transactions continue, we will actively implement share buyback and cancellations.

第四，KB金融集團基於堅實的基本面和行業最高水平的資本實力，同時將現金分紅比例和金額保持在穩定水平。我們將利用股票回購和註銷等多種股東回報工具，逐步提高我們的股東總回報率。為了不斷擴大股東價值，必須在擴大股東回報率的同時，保障分紅的不穩定性。每年，我們計劃至少維持與上一年相同水平的最低派息水平，並逐步增加，以便我們能夠為股東提供穩定的派息。如果 KBFG 的估值、絕對和相對折讓交易持續，我們將積極實施股份回購和註銷。

Finally, KB Financial Group will do our best to play our role as Korea's representative financial institution and do our best to harmonize this with shareholder interest. As previously mentioned, KB Financial Group subsidiaries, including our bank is the most important source of liquidity for economic entities, and we believe that proportion of the role of KB Financial Group occupies in maintaining the stability of the domestic financial system is by no means small. Accordingly, KBFG as Korea's representative financial institution at a time when the unit functions and roles of financial institutions are needed, including stability of the domestic financial system and stop landing of economic entities in response to economic fluctuations, we will comprehensively review all interest, including shareholders and stakeholders and implement our capital policy.

最後，KB Financial Group 將盡最大努力發揮我們作為韓國代表性金融機構的作用，並儘最大努力使之與股東利益相協調。如前所述，包括我行在內的KB金融集團子公司是經濟實體最重要的流動性來源，我們認為KB金融集團在維護國內金融體系穩定中所佔的比重絕不小.因此，KBFG作為韓國的代表性金融機構，在需要金融機構的單位職能和作用的時候，包括國內金融體系的穩定和經濟實體停止登陸以應對經濟波動，我們將全面審查所有利益，包括股東和利益相關者並執行我們的資本政策。

For the stability of the social system, we plan to faithfully fulfill the role of the group at a time when it is needed. And to this end, we plan to have our sustainable growth in parallel with the expansion of shareholder profits. Through the group's mid- to long-term capital management plan I have covered so far going forward, we believe that we have come up with a framework, which has developed a level further to implement a more sophisticated capital management and advanced capital policies. We promise you that we will more safely implement and develop this further to more solidify the group's sustainable growth, and at the same time, do our best to implement the industry's leading shareholder return policy. We will do our best.

為了社會系統的穩定，我們計劃在需要的時候忠實地履行小組的作用。為此，我們計劃在擴大股東利潤的同時實現可持續增長。通過我迄今為止所涵蓋的集團中長期資本管理計劃，我們相信我們已經提出了一個框架，該框架進一步發展到一個水平，以實施更複雜的資本管理和先進的資本政策。我們向您承諾，我們將更加穩妥地實施和進一步發展，以更加鞏固集團的可持續發展，同時盡最大努力實施行業領先的股東回報政策。我們會全力以赴。

From the next page, there is detailed data regarding the business performance I have covered so far, and please refer to it if needed. With this, I will conclude my report on 2022 business performance report of KBFG. Thank you for your attention.

從下一頁開始，有關於我到目前為止所涵蓋的業務績效的詳細數據，如果需要請參考。至此，我將結束我對 KBFG 2022 年業務績效報告的報告。感謝您的關注。

Thank you very much for the presentation. We will now begin the Q&A. (Operator Instructions). We will take the first question.

非常感謝您的介紹。我們現在開始問答環節。 （操作員說明）。我們將回答第一個問題。

Mr. Kim Jaewoo from Samsung Securities.

三星證券Kim Jaewoo先生。

My first question relates to your shareholder return policy. You did provide us with the detail, but I still do have a couple of items that I want to clarify. In terms of the total shareholder return rate, what is your target? And how do you break that between dividend and share buyback? I would like to understand how you're going to balance between the 2. And you've been paying out on a quarterly basis, and I am wondering what your plans are, quarterly dividend or year-end dividend payout? Would there be any change in your dividend payout policies? Would like to understand that in more detail.

我的第一個問題與你們的股東回報政策有關。您確實向我們提供了詳細信息，但我仍然有幾項需要澄清。就股東總回報率而言，您的目標是什麼？你如何打破股息和股票回購之間的關係？我想了解您將如何在兩者之間取得平衡。而且您一直按季度支付，我想知道您的計劃是什麼，季度股息還是年終股息支付？您的股息支付政策會有任何變化嗎？想更詳細地了解這一點。

And also last year, if my memory is correct, there was no shareholder buyback, but I believe that going forward, you will be quite aggressive in share buyback and cancellation. And you talked about CET1 ratio of target of 13% and excess capital, you would use aggressively to pay dividend. But -- when you achieve CET 13%, 1/3 about 12 billion of share buyback was announced by JP. So I'm just wondering whether you would move very aggressively and actively in actually paying out your dividend. And I would like to understand the shares did you buy back, how would you use them? Some of the global companies rather than canceling them, they would use it to compensate their executives and employees. I would like to understand what your plans are with regards to that practice.

還有去年，如果我沒記錯的話，沒有股東回購，但我相信今後，你們在股票回購和註銷方面會相當積極。你談到了 13% 的目標 CET1 比率和超額資本，你將積極使用來支付股息。但是——當你達到 13% 的 CET 時，JP 宣布了 1/3 約 120 億股回購。所以我只是想知道你是否會非常積極主動地實際支付你的股息。我想了解一下您回購的股票，您將如何使用它們？一些全球性公司不會取消它們，而是用它來補償他們的高管和員工。我想了解您對該實踐的計劃。

Thank you very much for the question. That is a quite difficult question to tackle. As I presented at the beginning, we came up with the mid- to long-term capital management plan. And I can tell you for certain that this was not attributable to any outside drivers, but we felt that internally, it was necessary for us to really provide a strong commitment to the market. I just wanted to preface this answer with that. If you look at capital management, we look towards advanced countries, U.S., Japan, Singapore and Australia. There are multiple number of countries that we looked into. We studied them and we adopted them as our benchmark. But as you would appreciate, when we need to talk about the dividend payout, we need to first start off with our target CET1 ratio. We also need assumptions on growth.

非常感謝你的提問。這是一個很難解決的問題。正如我在開頭介紹的那樣，我們提出了中長期資本管理計劃。我可以肯定地告訴你，這不能歸因於任何外部驅動因素，但我們認為在內部，我們有必要真正為市場提供強有力的承諾。我只是想以此作為這個答案的序言。如果你看資本管理，我們會看向發達國家，美國、日本、新加坡和澳大利亞。我們調查了多個國家。我們研究了它們，並將它們作為我們的基準。但正如您所理解的，當我們需要談論股息支付時，我們需要首先從我們的目標 CET1 比率開始。我們還需要對增長做出假設。

And thirdly, with regards to the excess capital, we need to have a principle and discipline in place. At this point in time last year, our group's ROE on a common equity basis, was 9.9%. Now for this year, if the nominal GDP growth rate for '23 was assumed at 5%, this is just for illustrative purposes, let me remind you. Now so if nominal GDP growth was 5%, if there's 5% asset growth for the group, then in 2023, we would reach ROE of 9.9%. So under this capacity, this means that we cannot increase our payout ratio to 50%. It is just simple arithmetic so you would understand this.

第三，對於過剩的資本，我們需要有原則和紀律。去年此時，我們集團的普通股淨資產收益率為 9.9%。今年，如果假設 23 年的名義 GDP 增長率為 5%，這只是為了說明目的，讓我提醒您。現在，如果名義 GDP 增長率為 5%，如果該集團的資產增長率為 5%，那麼到 2023 年，我們將達到 9.9% 的股本回報率。所以在這種能力下，這意味著我們不能將我們的派息率提高到50%。這只是簡單的算術，所以你會明白這一點。

So based on our basic capital plan, through asset growth, increasing leverage and increasing ROE rather than taking that approach, what I want to emphasize that we would like to increase ROA continuously. And the way we could do that is a steady credit cost and SG&A, strong control over G&A. And noninterest income increased that's the way for us to increase the ROE. You'd mentioned JPMorgan of U.S. For us to pay our dividends like JPMorgan, basically, ROE or ROA would have to rise significantly from where we are today.

因此，基於我們的基本資本計劃，通過資產增長、增加槓桿和增加 ROE 而不是採用這種方法，我想強調的是我們希望不斷增加 ROA。我們可以做到這一點的方法是穩定的信貸成本和 SG&A，對 G&A 的強有力控制。非利息收入的增加是我們提高股本回報率的方式。你提到了美國的摩根大通。如果我們要像摩根大通一樣支付股息，基本上，ROE 或 ROA 必須比我們今天的水平大幅上升。

Our CET1 ratio target, if we meet that 13% target and as the biggest financial company, if we achieve the asset growth up to our potential, basically, our principal and discipline of paying back to the shareholders whatever is left in terms of excess capital is a strong commitment. Just want to emphasize it as well.

我們的 CET1 比率目標，如果我們達到 13% 的目標，並且作為最大的金融公司，如果我們實現資產增長達到我們的潛力，基本上，我們的原則和紀律就是以超額資本的形式回報股東是一個堅定的承諾。也只是想強調一下。

And then you asked about how we will be paying out. In terms of our quarterly payout plan. We have no plan to change that. Just as we've done in 2022, it will be done in the same manner. Third question relating to the treasury shares. We bought -- we mentioned that we will buy 300 billion of treasury shares and immediately cancel them. If you look at treasury shares, when you purchase, the market principle is that you should cancel immediately. When we return back to our shareholders, and this will be an element that we will put a lot of interest in. And as I also previously mentioned, for shareholder return and shareholder value, returning back to shareholders is very important. But our price to book or price to earnings at this point is very much at the lower level. Under that situation, share buyback and share cancellation is something that we are planning to progressively expand going forward.

然後你問我們將如何支付。就我們的季度支付計劃而言。我們沒有改變這一點的計劃。就像我們在 2022 年所做的那樣，它將以同樣的方式完成。第三個問題與庫存股有關。我們購買了——我們提到我們將購買 3000 億庫存股並立即註銷。你看庫存股，當你買入的時候，市場的原則是你應該立即註銷。當我們回報股東時，這將是我們非常關注的一個因素。正如我之前提到的，對於股東回報和股東價值，回報股東非常重要。但我們目前的賬面價值或市盈率非常低。在這種情況下，我們計劃在未來逐步擴大股票回購和股票註銷。

Thank you very much. Thank you for your various questions regarding dividends, and I hope the answer was sufficient.

非常感謝。感謝您提出有關股息的各種問題，我希望答案是足夠的。

We will take the next question from JPMorgan, Jihyun Cho.

我們將接受摩根大通 Jihyun Cho 的下一個問題。

I would like to ask about provisioning for your overseas subsidiaries. And I know that related to Bukopin, probably the provision is for that. And I think you mentioned this briefly. And can you tell us about the operations. And regarding the provisioning, if it will not be burden for the future if it's already sufficient at this level. And I know that you are working to normalize the operations of this bank. And when do you think this bank will add to your earnings to the group. Are there other overseas subsidiaries that you can tell us about that may lead to these types of provisioning or losses?

我想問一下你們海外子公司的準備金。我知道這與 Bukopin 有關，可能規定就是針對此的。我想你簡短地提到了這一點。你能告訴我們這些操作嗎？關於供應，如果在這個水平上已經足夠的話，它不會成為未來的負擔。我知道您正在努力使這家銀行的運營正常化。你認為這家銀行什麼時候會把你的收入加到集團裡。是否還有其他海外子公司可能導致此類撥備或損失？

Or are there any positive movements for overseas subsidiaries? If you can answer that, it will be helpful. And in 2023 guidance, I would like to ask you questions because looking at your book compared to your competitors, regarding your loan growth or others, it seems that it's a bit lower. So can you tell us about 2023 guidance, NIM and loan growth and credit cost guidance and your bottom line? What kind of growth that you are in envisaging based on your guidance for 2023?

還是海外子公司有什麼積極的動向？如果你能回答這個問題，那將會很有幫助。在 2023 年的指導中，我想問你一些問題，因為與你的競爭對手相比，看你的書，關於你的貸款增長或其他，似乎有點低。那麼你能告訴我們 2023 年的指導、NIM 和貸款增長以及信貸成本指導以及你的底線嗎？根據您對 2023 年的指導，您預計會有什麼樣的增長？

And regarding Bukopin, I would like to explain a bit more about the situation. I'm the CFO, so maybe I can explain about the financials. And from KBFG, we can hear about the situation more from our CGSO, Cho Nam-Hoon.

關於布科平，我想多解釋一下情況。我是首席財務官，所以也許我可以解釋一下財務狀況。從 KBFG，我們可以從我們的 CGSO Cho Nam-Hoon 那裡了解更多情況。

Regarding Bukopin, to explain the situation in 2018 in July, Indonesia's mid- to large bank, Bukopin shares were acquired. And in July of 2020, we had -- and in September, we had third-party allotment of capital increase. So we have about 67% of shares as of now, and we are the largest shareholder. The reason why we decided to acquire Bukopin because we paid attention to the possibility potential of Indonesia, it is because they have a very high economic growth rate compared to other countries, they have very strong internal demand economic structure and abundant resources and a middle class increase. They have a very large population of 270 million. And we found that they have a lower utilization rate of financial service.

關於Bukopin，為了說明2018年7月的情況，收購了印尼中大型銀行Bukopin的股份。在 2020 年 7 月，我們進行了——在 9 月，我們進行了第三方增資配額。所以我們現在有大約67%的股份，我們是最大的股東。我們之所以決定收購Bukopin，是因為我們看中了印尼的可能性潛力，因為他們的經濟增長率相對於其他國家來說非常高，他們有非常強大的內需經濟結構和豐富的資源以及中產階級增加。他們有 2.7 億人口。而且我們發現他們對金融服務的利用率較低。

So we found that it's a very attractive market. And we try to enter into the local market very quickly through acquiring the shares of Bukopin Bank. And by acquiring this mid- to long -- mid- to large bank with a large customer structure with very vast sales operations, we believe that we could have a differentiated move compared to other Korean banks that were pursuing organic growth. However, Bukopin Bank after -- although we made many efforts to turn around Bukopin Bank, there was the COVID-19 situation that became prolonged. And the top line growth that we had thought of in the beginning was actually delayed. And there was the NPLs of the loans. So it went against our expectations in 2021 in November.

所以我們發現這是一個非常有吸引力的市場。我們試圖通過收購 Bukopin 銀行的股份來快速進入當地市場。通過收購這家擁有龐大客戶結構和龐大銷售業務的中長期——中大型銀行，我們相信，與其他追求有機增長的韓國銀行相比，我們可以採取與眾不同的舉措。然而，Bukopin 銀行之後——儘管我們為扭轉 Bukopin 銀行做出了很多努力，但 COVID-19 的情況持續了很長時間。而我們一開始想到的收入增長實際上被推遲了。還有貸款的不良貸款。所以它違背了我們在 2021 年 11 月的預期。

There was the third-party allotment of capital increase. So there was about KRW 390 billion of the burden, and we had KRW 640 billion of capital increase that we have determined as of now. And until now currently, we have 3 rounds of investment after getting the shares and total IDR, KRW 982.2 billion, which is about KRW 790 billion actually that we had invested as shares and the net asset value of Bukopin is IDR 11.6 billion. And we had very conservative provisioning for Bukopin. So I would like to emphasize that and for the Indonesian regulatory authorities, you can see the growth NPL ratios of Bukopin is 6.2% and NPR is KRW 2.8 trillion. And on a consolidated basis as of end 2022, the total provision is KRW 57 billion -- KRW 570 billion and compared to the NPL, you can see that provisioning is much higher than this amount. So that is why this is very preemptive provisioning that we have implemented.

有第三方增資配股。所以有大約 3900 億韓元的負擔，我們有 6400 億韓元的增資，我們現在已經確定了。到目前為止，我們在獲得股份和總 IDR 後進行了 3 輪投資，9822 億韓元，這相當於我們實際投資的股份約 7900 億韓元，Bukopin 的淨資產值為 116 億印尼盾。我們對 Bukopin 的供應非常保守。所以我想強調的是，對於印度尼西亞監管機構，您可以看到 Bukopin 的不良貸款率為 6.2%，NPR 為 2.8 萬億韓元。在合併的基礎上，截至 2022 年底，撥備總額為 570 億韓元——5700 億韓元，與不良貸款相比，您可以看到撥備遠高於此數額。這就是為什麼我們已經實施了非常先發製人的規定。

For the additional provisioning this year, we believe that it is sufficient enough to absorb the future NPLs. So we believe that we will not have more provisioning against future losses. And we believe that this will be the year 2023 to cut our ties with all these NPLs so that we will not have any additional burden because of this. And I would like to ask Cho Nam-Hoon, who is the CGSO to explain more about the situation.

對於今年的額外撥備，我們認為足以消化未來的不良貸款。所以我們相信我們不會為未來的損失準備更多的準備金。我們相信，今年將是 2023 年，我們將切斷與所有這些不良貸款的聯繫，這樣我們就不會因此而有任何額外的負擔。我想請 CGSO Cho Nam-Hoon 詳細解釋一下情況。

I am Global Strategy Head, Cho Nam-Hoon. Regarding Bukopin and when it can add to the earnings of our group. Well, because this is not normalized as of now, so we believe that we will need a bit more time for it to become normalized. And we are managing this situation with a long-term perspective. And as was mentioned by our CFO previously, compared to what we had planned, it is true that we have been delayed for 2 to 3 years for the normalization of Bukopin. And I am quite prudent, but because we had sizable provisioning this year, although it has not been normalized yet, I think prudently, we can estimate that by 2026, we can have -- 2025, actually where we can make a profit. And we believe that by 2026, it can add to our ROE, at least not work against our ROE, and we are doing our best to faithfully implement our plans for normalization.

我是全球戰略主管 Cho Nam-Hoon。關於 Bukopin 以及它何時可以增加我們集團的收入。好吧，因為目前還沒有標準化，所以我們相信我們需要更多時間才能使其標準化。我們正在以長遠的眼光來處理這種情況。正如我們的首席財務官之前提到的，與我們的計劃相比，我們確實將 Bukopin 的正常化推遲了 2 到 3 年。而且我非常謹慎，但是因為我們今年有相當大的撥備，雖然還沒有正常化，但我謹慎地認為，我們可以估計到 2026 年，我們可以 - 2025 年，實際上我們可以盈利。我們相信，到 2026 年，它可以增加我們的 ROE，至少不會影響我們的 ROE，我們正在盡最大努力忠實地執行我們的正常化計劃。

And for our other subsidiaries, for 2022, there was Cambodia PRASAC that we had acquired another bank, and there's also other overseas subsidiaries that we had acquired and established. Then they are being managed well for asset quality. And for their earnings actually, they are actually quite positive even going over our expectations. So it is not a burden to us in our earnings. And we believe that the contribution they can make to our earnings will become very positive going forward.

對於我們的其他子公司，2022 年，我們收購了另一家銀行的柬埔寨 PRASAC，還有我們收購和建立的其他海外子公司。然後他們在資產質量方面得到了很好的管理。實際上，對於他們的收入，他們實際上非常積極，甚至超出了我們的預期。所以這對我們的收入來說不是負擔。我們相信，他們對我們收益的貢獻將在未來變得非常積極。

I am [Kim Jae Kwan], I'm the CFO of the bank. And for loan growth, I would like to answer your question. In Q4, for the household loans, there was KRW 0.4 trillion growth -- KRW 0.2 trillion growth and strategically in Q4, there were securities KRW 9.9 trillion growth. And for this year, I would like to comment on loan growth rate. 3% to 4% that we are estimating as an outlook, but we do have the interest rate burden we are seeing a lot of the repayment of the loans, and there is the special program loan situation and corporate loan market is stabilizing. So we believe that large core demand will stabilize. So we believe that going forward, the loan growth loan book growth will be a bit lower than expected, but we will do our best to meet the real demand in the market. And we are focusing more on profitability and asset quality on high-quality loans rather than just size, growth based on size.

我是 [Kim Jae Kwan]，我是銀行的首席財務官。對於貸款增長，我想回答你的問題。第四季度，家庭貸款增長了 0.4 萬億韓元 - 增長了 0.2 萬億韓元，戰略性地，第四季度證券增長了 9.9 萬億韓元。對於今年，我想對貸款增長率發表評論。我們估計前景為 3% 至 4%，但我們確實有利率負擔，我們看到很多貸款還款，而且有特別計劃貸款情況，公司貸款市場正在穩定。所以我們認為大核心需求會企穩。所以我們認為，展望未來，貸款增長貸款賬面增長將略低於預期，但我們會盡力滿足市場的實際需求。我們更多地關注高質量貸款的盈利能力和資產質量，而不僅僅是規模，基於規模的增長。

Just to add to that answer. For our capital management plan, I mentioned that for the asset growth, well it will follow system growth for the midterm plans. And regarding the guidance for 2023 that you asked about, well, in principle, we don't give our net earnings guidance NP guidance, but what I can comment on is that with IFRS 17 change for accounting and when this macro situation continues and taking into account our preemptive provisioning, then 2023 earnings guidance will be quite positive.

只是為了添加到那個答案。對於我們的資本管理計劃，我提到對於資產增長，它將跟隨中期計劃的系統增長。關於您詢問的 2023 年指引，嗯，原則上，我們不提供淨收益指引 NP 指引，但我可以評論的是，隨著 IFRS 17 的會計變更以及這種宏觀形勢持續和採取考慮到我們的先發製人撥備，那麼 2023 年的收益指引將非常積極。

And when we have these earnings releases related to Bukopin preemptive provisioning and FLC preemptive provisioning, if excluding that, then it would have been KRW 4.9 trillion, of additional of these earnings. So we believe that this will become sufficient guidance for 2023.

當我們發布與 Bukopin 搶先撥備和 FLC 搶先撥備相關的收益時，如果將其排除在外，那麼這些收益的額外收入將達到 4.9 萬億韓元。因此，我們相信這將成為 2023 年的充分指導。

Thank you for that. We will take the next question from Citi, Yafei.

謝謝你。我們將接受花旗亞非的下一個問題。

I have a follow-up on capital return. So it's really around imaging, you mentioned that, 2023 profit was still very good. And to loan growth is relatively subdued. I just wanted to plug those numbers together and given your CET1 ratio already ahead of a 13% target. So is it possible that the payout ratio, including buybacks is going to be materially higher than what you have for this year, so probably somewhere around 40% or even 50% range?

我有一個關於資本回報的後續行動。所以它真的圍繞成像，你提到，2023 年的利潤仍然非常好。而貸款增長相對低迷。我只是想將這些數字放在一起，並考慮到您的 CET1 比率已經超過 13% 的目標。那麼，包括回購在內的派息率是否有可能大大高於今年的水平，所以可能在 40% 甚至 50% 左右？

Yes, once again, from a mid- to long-term capital management plan, we have a very detailed plan laid out. But as I mentioned before, our principle once again is not to give out a specific number in terms of the payout ratio target. But as you've mentioned, once we achieve the net profit target internally. And once we have enough of the capital ratio, as mentioned under the mid- to long-term capital management plan, our clear principle that we shared with you previously is something that we will safely comply with.

是的，再一次，從中長期資本管理計劃，我們有一個非常詳細的計劃。但正如我之前提到的，我們的原則再次是不給出派息率目標的具體數字。但正如你提到的，一旦我們在內部實現了淨利潤目標。一旦我們有足夠的資本比率，正如中長期資本管理計劃中提到的那樣，我們之前與您分享的明確原則是我們將安全遵守的。

We will take the next question from Hanwha Securities, Kim Do Ha.

我們將接受韓華證券金道河的下一個問題。

I Have 3 questions. The first question could be a detailed question, and you mentioned towards a target and you told us about excess capital return. And I believe that it can be finalized at the end of the year. And like today, we will see the earnings finalized at the end of February, and you mentioned that you will have share buyback from tomorrow. So do you think this will be the schedule going forward if you have the cancellation of the shares. So after the end of the year when everything is finalized. So at the end of the financial year. So it will be included in the previous year's shareholder return. And at the end of the year, if you did not reach 13% CET1 ratio, then it will be hard to expect your buyback. But could we also expect more dividends in this situation. And next, regarding the share -- what are you going to do with the shares that you hold now? And regarding the credit risk, I know that you have seen some provisioning. So can you tell us about your plans for the CET1 ratio, taking these factors into consideration?

我有 3 個問題。第一個問題可能是一個詳細的問題，你提到了一個目標，你告訴我們超額資本回報。我相信它可以在今年年底完成。就像今天一樣，我們將在 2 月底看到最終的收益，你提到你將從明天開始回購股票。那麼，如果您取消股份，您認為這將是未來的時間表嗎？所以在年底之後，一切都敲定了。所以在財政年度結束時。所以會計入上一年的股東回報。而到了年底，如果你的 CET1 比例沒有達到 13%，那麼你的回購就很難指望了。但在這種情況下，我們還能期待更多的紅利嗎？接下來，關於股份——你打算如何處理你現在持有的股份？關於信用風險，我知道你已經看到了一些撥備。那麼您能告訴我們您在考慮這些因素的情況下對CET1比率的計劃嗎？

Thank you for various questions, and I would like to answer those questions. We mentioned our mid capital management and dividend plan and maybe I was not clear enough. So I would like to emphasize this once again. For cash dividends, compared to the past, compared to the previous year, our principle is not to actually have a at a level lower than the previous year. So that is our principle. And secondly, for shareholder return that you aforementioned for a share buyback, as was mentioned in your question, for the KRW 300 billion of these shares, well, this will be included in the 2022 TSR, total shareholder return, and there is government initiated dividend related change for the dividends. And when this is confirmed, then of course, we will include that if the change is confirmed. So we will communicate with the bank regarding this. And for the Basel III credit risk, Well, I would like to ask our group CRO, [Cheal Soo Choi], to answer that question.

感謝您提出各種問題，我想回答這些問題。我們提到了我們的中期資本管理和股息計劃，也許我還不夠清楚。所以我想再次強調這一點。現金分紅，跟過去比，跟上年比，我們的原則是，實際上不比上年低。所以這是我們的原則。其次，對於你提到的股票回購的股東回報，正如你在問題中提到的，對於這些股票中的 3000 億韓元，這將被納入 2022 年 TSR，股東總回報，並且有政府發起與股息相關的股息變化。當這一點得到確認時，當然，如果更改得到確認，我們將包括在內。因此，我們將就此與銀行進行溝通。對於巴塞爾協議 III 的信用風險，我想請我們集團的首席風險官 [Cheal Soo Choi] 來回答這個問題。

Yes, regarding Basel III, I would like to answer your question for the credit risk. I'm the CRO. And we have actually implemented that already. And for this year, for Basel III, there's market risk and operational risk that we will implement. And for market resist on sensitivity, and for operation owners, there's the multiples, the internal multiples that we will use. And for the numbers, Well, we will need to divide that in March. But I think, although I cannot mention the numbers as of now for PI ratio or CET1 ratio, we believe that it will have a positive impact. And we believe that the results will probably be similar to what we have been expecting.

是的，關於巴塞爾協議III，我想回答你關於信用風險的問題。我是首席風險官。我們實際上已經實施了。今年，對於巴塞爾協議 III，我們將實施市場風險和運營風險。對於市場對敏感性的抵制，以及對於運營所有者，我們將使用倍數，即內部倍數。至於數字，嗯，我們需要在三月份進行劃分。但我認為，雖然我現在不能提到 PI 比率或 CET1 比率的數字，但我們相信它會產生積極的影響。我們相信結果可能與我們一直期待的相似。

Thank you for the answer. We do not have any more questions waiting in the queue, but give us 1 moment. Yes, we have 1 question from CLSA.

謝謝你的回答。隊列中沒有其他問題在等待，請給我們 1 分鐘的時間。是的，我們有 1 個來自里昂證券的問題。

My name is Shim Jong Min from CLSA. I have one question relating to domestic economic outlook. I would like to understand what the executives take is on the future outlook of the domestic market. We hear these days a lot about the real estate market, and SOHO loans in the past have grown quite steeply. And so there's a concern relating to the real estate-related, mortgage-related loans. But is it okay for us to interpret that you are well prepared against such domestic economic recessions. Are there any areas where you are overly concerned about in terms of the domestic market?

我叫 CLSA 的 Shim Jong Min。我有一個關於國內經濟前景的問題。我想了解高管們對國內市場未來前景的看法。這些天我們聽到很多關於房地產市場的消息，過去SOHO貸款增長非常快。因此，人們擔心與房地產相關的抵押貸款相關的貸款。但是我們可以解釋為您已做好應對此類國內經濟衰退的準備嗎？就國內市場而言，您是否有過分關注的領域？

Allow me to respond to that question. This is Cheal Soo Choi. With the very high rate cycle, we are clearly aware of heightened uncertainty. So we do have concerns, we are mindful of the asset quality, of course, as our CFO has mentioned, we've been very conservative. And based on our forward-looking criteria, we have provisioned significantly. Even aside from Bukopin, we've applied a lot of stress on our economic scenario based on which we've provisioned for the reserve. And also, our asset quality management through our portfolio, has always been the range that we have we have been foreseeing. And so once again, with ample amount of provisions, we will do our best to focus on asset quality management.

請允許我回答這個問題。這是 Cheal Soo Choi。在利率週期非常高的情況下，我們清楚地意識到不確定性增加。所以我們確實有顧慮，我們關注資產質量，當然，正如我們的首席財務官所提到的，我們一直非常保守。根據我們的前瞻性標準，我們已經進行了大量準備。即使不考慮 Bukopin，我們也對我們的經濟情景施加了很大壓力，我們已經根據這些情景為儲備金做了準備。而且，我們通過投資組合進行的資產質量管理一直是我們所預見的範圍。因此，再次在撥備充足的情況下，我們將盡最大努力專注於資產質量管理。

On some of the areas where there may be more concern compared to the past, as long as we put in corporate-wide effort, we believe that we will be able to keep that under control. And come end of the year, I believe that our outlook and projection will more or less materialize. And so in terms of loan policy and managing the overall portfolio, we believe that we will have ample capability to be able to manage the issues.

在一些可能比以往更值得關注的領域，只要全公司上下齊心協力，相信一定能夠控制住。到今年年底，我相信我們的前景和預測或多或少會實現。因此，在貸款政策和管理整體投資組合方面，我們相信我們將有足夠的能力來管理這些問題。

We will take the last question from DB Securities, [Cheon Kwon Myeong.]

我們將接受 DB Securities [Cheon Kwon Myeong] 的最後一個問題。

I just have 1 question. Well, based on your NIM and your outlook, can you tell us about the situation? What is the NIM outlook 2023 outlook for NIM outlook and your rationale behind that.

我只有 1 個問題。那麼，根據您的 NIM 和您的前景，您能告訴我們情況嗎？ NIM outlook 2023 的 NIM outlook 展望是什麼以及您背後的理由。

Thank you for the question. This is Jae Kwan Kim. Continuing from the previous year to this year, we have seen core deposits that are going down and the interest rate hike cycle, well, there are expectations that this will end. So it has been already implemented into the market preemptively, and we are seeing the spread going down. So it seems that we will have a difficulty in having a great NIM hike. However, with the key rate increase, we have some loan repricing that we can have. So on a Y-o-Y basis, we can have a slight increase that we can expect for the NIM in 2023.

感謝你的提問。我是 Jae Kwan Kim。從去年到今年，我們看到核心存款在下降，加息週期，嗯，有預期這將結束。所以它已經先發製人地進入市場，我們看到價差正在下降。所以看起來我們很難有一個很好的 NIM 加息。但是，隨著關鍵利率的提高，我們可以進行一些貸款重新定價。因此，在 Y-o-Y 的基礎上，我們可以預期 2023 年的 NIM 會略有增加。

Thank you. We do not have any further questions that's waiting in line, but just bear with us 1 moment before we close. While preparing for the earnings presentation, we believe there will be a lot of interest regarding the mid- to long-term capital management plan, additional provisioning, and we had this opportunity to discuss quite a bit about these items as I would think that in terms of the financial performance itself, there won't be too many questions as they are quite clear in and of themselves. But we will still wait just a couple more seconds.

謝謝。我們沒有任何其他問題在排隊等候，但請在我們結束前耐心等待 1 分鐘。在準備收益報告時，我們相信會有很多人對中長期資本管理計劃、額外準備金感興趣，我們有機會就這些項目進行了很多討論，因為我認為在就財務業績本身而言，不會有太多問題，因為它們本身就很清楚。但我們仍會再等幾秒鐘。

With no further questions being submitted, we would like to now close the earnings presentation of KBFG. Thank you very much.

在沒有提交進一步問題的情況下，我們現在想結束 KBFG 的收益介紹。非常感謝。