KB Financial Group Inc (KB) 2025 Q1 法說會逐字稿

Greetings, I am Peter Kwon, Head of the KBFG IR Division. We will now begin the 2025 Q1 business results presentation. Thank you very much for participating in today's earnings release. We have here with us Executives from the group, including CFO, Sang Rock Na.

您好，我是 KBFG IR 部門主管 Peter Kwon。我們現在開始2025年第一季業務成果報告。非常感謝您參加今天的收益發表會。我們這裡有集團的高階主管，包括財務長 Sang Rock Na。

First, our Group CFO will cover 2025 Q1 major performance highlights. After that, we will have a Q&A session. Please note that like in the previous quarter, after our real-time Q&A session, we have set aside additional time for the management team to answer shareholders' questions.

首先，我們的集團財務長將介紹2025年第一季的主要業績亮點。之後我們將進行問答環節。請注意，與上一季一樣，在我們的即時問答環節之後，我們為管理團隊留出了額外的時間來回答股東的問題。

I will now invite our group CFO to walk us through 2025 Q1 business Greetings.

現在，我將邀請我們集團的財務長向我們介紹 2025 年第一季的業務問候。

Greetings. I am KBFG CFO, Sang-Rok Na. Thank you for participating in our 2025 Q1 business results presentation. I will first touch upon Q1 key performance and major management indicators and give you more details for each category. In addition by applying the financial supervisory services response to our inquiry regarding insurance contract accounting treatment, we retrospectively restated financial results from 2024 Q1 to Q3. Please take this into consideration.

問候。我是 KBFG 財務長 Sang-Rok Na。感謝您參加我們的2025年第一季業務成果演示。我將首先談談第一季的關鍵績效和主要管理指標，並為您提供每個類別的更多詳細資訊。此外，透過應用金融監理部門對我們關於保險合約會計處理的詢問的回應，我們追溯重述了 2024 年第一季至第三季的財務結果。請考慮這一點。

Let's go to Page 1. In October of last year, we announced our clear road map regarding shareholder return. And this year, we are convinced that this will be a year when we will clearly demonstrate our group shareholder return policy.

讓我們轉到第 1 頁。去年10月，我們公佈了關於股東回報的明確路線圖。而今年，我們堅信，這將是我們清楚展現集團股東回報政策的一年。

Even though concerns over global economic downturn are spreading, once again, KBFG focused on stable capital ratio management and continued robust profit-generating capacity. Most of all, March end CET1 ratio posted 13.67%, a 14 bp increase Q-o-Q, and we expect to maintain the industry's highest level of capital ratio.

儘管對全球經濟衰退的擔憂正在蔓延，但 KBFG 再次專注於穩定的資本比率管理並持續保持強勁的獲利能力。最重要的是，3月底CET1比率為13.67％，環比增加14個基點，我們預計將維持行業最高資本充足率水準。

And we can say that this was a result of stable management of risk-weighted asset growth as well as efficient capital allocation. In addition, Q1 net profit posted KRW1.6973 trillion, and group ROE recorded 13.04% and is showing solid performance in all aspects of profitability and capital efficiency. Going forward, based on our capital management policy, focusing on CET1 ratio and strong earnings capacity, we'll keep the promise that we made with the market.

可以說，這是穩定管理風險加權資產成長和有效資本配置的結果。此外，第一季淨利達1.6973兆韓元，集團ROE達13.04%，在獲利能力和資本效率等各方面均表現穩健。展望未來，我們將秉承資本管理政策，以CET1比率和強大的獲利能力為重點，兌現對市場的承諾。

Next is Page 2. On this page, I will once again explain about our shareholder value enhancement policy that the market is recently mostly interested in. As you are well aware, KBFG in October of last year, focusing on sustainability and predictability announced our shareholder return policy linked to CET1 ratio.

接下來是第 2 頁。在此頁面上，我將再次解釋市場最近最感興趣的我們的股東價值提升政策。眾所周知，KBFG 於去年 10 月宣布了與 CET1 比率掛鉤的股東回報政策，並注重永續性和可預測性。

Shareholder return policy linked to CET1 ratio is designed to return more to the shareholders, the higher the CET1 ratio is without any upper limitation to the total shareholder return ratio. Related to this, I reiterate once again that our basic principle is to implement shareholder returns first in the first half of the year and then again in the second half of the year.

與 CET1 比率掛鉤的股東回報政策旨在使 CET1 比率越高，股東獲得的回報越多，且對股東總回報率沒有上限。與此相關，我再次重申，我們的基本原則是上半年先達成股東回報，下半年再實現股東回報。

In case of this year, capital in excess of last year and 13% CET1 ratio has already been reflected in shareholder returns through methods such as annual cash dividends and Q1 share buyback and cancellation.

就今年而言，超過去年的資本和13%的CET1比率已透過年度現金分紅、Q1股票回購註銷等方式體現在股東回報中。

In addition, the amount, which corresponds to the capital in excess of the first half and base 13.5% CET1 ratio will be utilized as the shareholder return resources in the second half of the year. Likewise, KBFG has transparently established shareholder return principles and standards and based on strong capital strength is aiming for the industry's highest level shareholder return ratio.

此外，上半年超出資本的部分，與基準13.5%的CET1比率相對應的金額，將作為下半年的股東回報資源。同樣，KBFG也透明地制定了股東回報原則和標準，並基於雄厚的資本實力，力爭實現行業最高水準的股東回報率。

However, due to the domestic and international, political and economic uncertainties, which have been continuing from late last year, the market volatility has expanded more than ever. We believe that in this unprecedented environment, this is the time when fostering market stability and flexible operation of our value of program is needed.

然而，由於去年底以來國內外政治、經濟等不確定因素持續存在，市場波動性比以往更大。我們相信，在這種前所未有的環境下，正是需要培養市場穩定性和靈活運作我們的價值計畫的時候。

As a part of this, we preemptively utilized KRW400 billion in the first half of the year and decided to enhance shareholder return predictability. Related to this, to give a more detailed explanation, today, our BOD made resolutions for KRW912 cash dividend per share and KRW300 billion of share buyback and cancellation. KRW912 per share quarterly cash dividend is a sizable KRW108 increase compared to the previous quarter.

作為其中的一部分，我們在上半年預先使用了4000億韓元，並決定提高股東回報的可預測性。與此相關，為了進行更詳細的解釋，今天，我們的董事會做出了每股 912 韓元現金股利和 3,000 億韓元股票回購和取消的決議。每股 912 韓元的季度現金股息與上一季相比大幅增加了 108 韓元。

This was a result of our efforts to improve the somewhat low dividend payout ratio relative to our earnings, increasing our total annual dividend amount to KRW335 billion level each quarter and around KRW1.34 trillion level on an annual basis. This is a KRW100 billion increase compared to the KRW1.24 trillion that we planned and announced in February.

這是因為我們努力提高相對於我們的收益而言略低的股息支付率，將我們的年度股息總額提高到每季 3,350 億韓元的水平，每年提高到 1.34 兆韓元左右。這比我們 2 月計劃和宣布的 1.24 兆韓元增加了 1000 億韓元。

In addition to the KRW300 billion share buyback and cancellation, which was resolved today and considering the shareholder return plan regarding the amount in excess of the 13.5% CET1 ratio plan for the second half of the year, we believe that through ongoing continued share buyback throughout the year, we will more flexibly respond to the market volatilities.

除了今天解決的3000億韓元股票回購和取消，以及考慮到下半年超過13.5% CET1比率計劃的股東回報計劃外，我們相信透過全年持續的股票回購，我們將更靈活地應對市場波動。

With this decision, we expect that the second half shareholder return predictability and annual total shareholder return ratio will proactively expand compared to the past.

透過這項決策，我們預計下半年股東回報預測性和全年總股東回報率將比過去主動擴大。

Going forward, we will uphold the previously announced shareholder return policy as a principle. And based on this, we will flexibly adapt to the internal and external market changes in order to enhance our shareholder value.

展望未來，我們將秉持先前宣布的股東回報政策作為原則。並在此基礎上靈活適應內外市場變化，提升股東價值。

Next, I will elaborate on KBFG financial performance. KBFG 2025 Q1 net profit posted KRW1.6973 trillion. With the fading away of the underlying effect stemming from last year's Q1 provisioning for ELS liabilities, the bank earnings fundamentals recovered in nonbanking subsidiaries' earnings expanded.

接下來我將詳細說明KBFG的財務表現。KBFG 2025年第一季淨利為1.6973兆韓元。隨著去年第一季提列ELS負債的潛在影響逐漸消退，銀行獲利基本面回暖，非銀行子公司獲利有所擴大。

In addition with the demonstration of mutually complementary performance between the bank and the nonbank subsidiaries, the contribution from nonbank in the group's earnings increased to 42% and proved once again KB's unique well-balanced portfolio.

此外，隨著銀行與非銀行子公司之間業績互補的體現，非銀行業務對集團盈利的貢獻上升至42%，再次證明了KB獨特的均衡投資組合。

In the case of our major nonbanking subsidiaries, securities and insurance, WM and trading results improved and delivered a solid performance. Real Estate Trust capital and savings bank that had preemptively provisioned due to concerns in the past over asset quality deterioration have alleviated burden from provisioning.

就我們主要的非銀行子公司、證券和保險而言，財富管理和交易績效有所改善，表現穩健。過去因擔心資產品質惡化而預先提列撥備的房地產信託資本和儲蓄銀行已減輕了提列撥備的負擔。

Meanwhile, the group's top line was further strengthened, thanks to balanced growth across interest and noninterest income, enhancing its overall profitability. As a result, total operating profit reached a record high of approximately KRW4.6 trillion demonstrating a solid earning power.

同時，由於利息和非利息收入的均衡成長，集團的營收得到進一步增強，從而提高了整體獲利能力。結果，總營業利潤創下約4.6兆韓元的歷史新高，展現出強勁的獲利能力。

Now I will provide a more detailed breakdown of our business performance by segment. . First, the gross net interest income amounted to KRW3.2622 trillion. Due to the impact of falling market rates, bank interest income, mostly from loans, decreased; however, the inflow of core deposits from market liquidity funds increased. And as a result, net interest income remained at a level similar to the previous quarter.

現在，我將按部門更詳細地細分我們的業務表現。。一是淨利息收入總額達3.2622兆韓元。受市場利率下行影響，銀行利息收入（主要來自貸款）減少，但市場流動性資金流入核心存款增加。因此，淨利息收入與上一季維持相似水準。

Next, on the banks of Korean won loans. As of the end of March 2025, the bank's total Korean won-denominated loans amounted to KRW357 trillion, up slightly YTD. Household loans stood at KRW179 trillion, growing by 1.3% YTD, mainly driven by group loans. Corporate loans amounted to KRW188 trillion, with loans to high-quality SMEs and self-employed growing approximately KRW1 trillion YTD, driving the overall increase in corporate loans.

其次，關於銀行韓元貸款問題。截至2025年3月底，該銀行的韓元貸款總額為357兆韓元，較年初略有成長。家庭貸款達 179 兆韓元，年初至今成長 1.3%，主要受團體貸款推動。企業貸款總額達188兆韓元，其中優質中小企業及自營貸款年初至今成長約1兆韓元，拉動企業貸款整體成長。

We plan to continue to maintain a growth strategy that is focused on comprehensive profitability while managing risk-weighted assets in consideration of the economic situation and the household debt levels.

我們計劃繼續保持以綜合盈利能力為重點的成長策略，同時考慮經濟情勢和家庭債務水準來管理風險加權資產。

Next, on the net interest margin in the bottom right section. In the first quarter, the group and the bank's NIM stood at 2.01% and 1.76%, respectively, showing an increase of 3 bps and 4 bps, respectively, Q-o-Q. For the bank's NIM, while the decline in loan yields continued due to asset repricing from falling interest rates, the NIM increased by 4 bps Q-o-Q, thanks to efforts in cost reduction based on ALM management, such as increase in core deposits and repricing of high interest time deposits.

接下來是右下角的淨利差。一季度，集團及銀行淨利差分別為2.01%及1.76%，較上季分別增加3個基點及4個基點。對於該銀行的淨利差，儘管由於利率下降導致資產重新定價，貸款收益率繼續下降，但由於基於資產負債管理的成本削減措施，例如增加核心存款和高息定期存款重新定價，淨息差環比增長了 4 個基點。

Next, moving on to noninterest income. In the first quarter, the group's noninterest income amounted to KRW1.292 trillion, improving both on a Q-o-Q and a Y-o-Y basis. This was largely due to significant improvements in securities related performance as a decline in market rates, including government bonds continued.

接下來，談談非利息收入。第一季度，集團非利息收入達1.292兆韓元，季減和年比均有所提高。這主要是由於包括政府公債在內的市場利率持續下降，導致證券相關績效大幅改善。

As a result, other operating income increased KRW115.9 billion Y-o-Y. Additionally, the first quarter's net fee income reached approximately KRW934 billion, although it was down slightly Y-o-Y due to adjustments in card merchant fees and delays in the recovery of real estate PF fees.

因此，其他營業收入較去年同期增加了1159億韓元。此外，第一季的淨費用收入達到約 9,340 億韓元，但由於卡商戶費用的調整和房地產 PF 費用回收的延遲，同比略有下降。

Since 2023, we have maintained an earnings fundamental of over KRW900 billion each quarter.

自2023年以來，我們每季都保持著超過9,000億韓元的獲利基礎。

On the other hand, insurance operating profits amounted to KRW437.8 billion, down slightly Y-o-Y. However, excluding base effects such as the write-back of IBNR reserves and non-life insurance during the fourth quarter of last year, there was a modest increase on a recurring basis.

另一方面，保險營業利潤為4378億韓元，年比略有下降。然而，若不計去年第四季 IBNR 準備金和非壽險的回撥等基數效應，經常性收入仍呈現小幅成長。

While some challenges are expected this year, including adjustments to the optimal assumptions and the realization of insurance liability discount rates, we plan to sustain stable earnings through improvements in insurance profitability based on CSM growth, and expansion of investment returns.

雖然今年預計面臨一些挑戰，包括調整最佳假設和實現保險責任折現率，但我們計劃透過基於合約服務邊際增長的保險盈利能力改善和投資回報的擴大來維持穩定的盈利。

Next, I'll go on to general and administrative expenses. In the first quarter, G&A were kept at stable KRW1.6056 trillion, down 1.4% Y-o-Y, thanks to efforts to rationalize costs mainly in recurring expenses. Additionally, the group CIR reached a record low of 35.3% reflecting a strong top line growth in efforts to optimize the workforce and cost structure as such. There is a clear improvement in cost efficiency. Looking ahead, we expect a downward stabilizing trend of the group CIR to continue, driven by ongoing cost efficiency efforts at the group level.

接下來，我將討論一般和行政費用。第一季度，由於努力合理化主要經常性費用的成本，一般及行政費用保持穩定，為 1.6056 兆韓元，年減 1.4%。此外，集團 CIR 達到 35.3% 的歷史最低水平，反映出在優化勞動力和成本結構方面的努力實現了強勁的營收成長。成本效率有明顯提高。展望未來，我們預計，在集團層面持續的成本效率努力的推動下，集團 CIR 將繼續保持下降的穩定趨勢。

On Page 8, we have the group's provisions for credit losses. On the first quarter, a provision for credit loss amounted to KRW655.6 billion, with the group's credit cost standing at 54 bps up slightly Q-o-Q. However, excluding one-off factors from the bank, the recurring level of the group's credit cost is 45 bps and is still being managed at a predictable level.

第 8 頁列出了該集團的信貸損失準備金。第一季度，信貸損失準備金為 6,556 億韓元，該集團的信貸成本較上季小幅上漲 54 個基點。不過，剔除銀行一次性因素，集團信貸成本的經常性水準為45個基點，仍在可預測的水準上進行管理。

Going forward, we will continue to strengthen our management to potential nonperforming exposures and maintain a conservative risk management stance to ensure asset quality. For your reference, considering the current level of provisions, market interest rates and the macroeconomic environment, we expect the group's annual credit costs for 2025 to be a manageable mid-40 bps level.

未來我們將持續加強潛在不良資產管理，維持穩健的風險管理態勢，確保資產品質。供您參考，考慮到目前的撥備水準、市場利率和宏觀經濟環境，我們預計集團 2025 年的年度信貸成本將處於可控的 40 個基點左右的水平。

Finally, let me discuss the group's capital ratio. As mentioned earlier, thanks to the group's efforts in managing risk-weighted assets and a solid increase in net income, the group's [tentative] BIS ratio as of the end of March 2025 was 16.57% and the CET1 ratio was 13.67%.

最後我來討論一下集團的資本比率。如前所述，由於集團在管理風險加權資產方面的努力以及淨收入的穩定增長，截至2025年3月底，集團的BIS比率（暫定）為16.57％，CET1比率為13.67％。

Now please refer to the next page. This year, our target for the annual growth rate of risk-weighted asset is 4.5%. And to achieve this, the group is strengthening its RoRWA management system for each subsidiary and business segment and is making every effort to achieve efficient asset growth from a comprehensive profitability perspective.

現在請參閱下一頁。今年我們風險加權資產年增率的目標是4.5%。而為實現此目標，集團正在強化各子公司、各業務部門的風險加權資產管理體系，從綜合獲利能力角度全力實現資產高效成長。

At the same time, one of our management strategies for achieving a stable capital ratio is not solely focused on unconditionally reducing the growth rate of risk-weighted assets. Rather, the risk-weighted assets are also the customer base of KB Financial Group and are assets that guarantee our sustainable strength.

同時，我們實現穩定資本比率的管理策略之一併不是僅僅著眼於無條件地降低風險加權資產的成長率。相反，風險加權資產也是KB金融集團的客戶基礎，是確保我們可持續實力的資產。

We believe that the most important goal is to generate appropriate returns for the asset through efficient capital allocation while ensuring stable growth. From the next page onwards, you will find detailed materials related to the performance that I've just explained, so please refer to them at your leisure.

我們認為，最重要的目標是透過有效的資本配置為資產產生適當的回報，同時確保穩定的成長。從下一頁開始，您將找到與我剛剛解釋的效能相關的詳細資料，因此請隨時參考。

With that, let me conclude the KB Financial Group's Q1 2025 management performance report. Thank you very much for your attention.

至此，我來結束 KB 金融集團 2025 年第一季管理績效報告。非常感謝您的關注。

Portions of this transcript that are marked (interpreted) were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中標記（翻譯）的部分是由現場通話中的翻譯人員說的。翻譯由贊助此活動的公司提供。