KB Financial Group Inc (KB) 2025 Q2 法說會逐字稿

Greetings.

問候。

I am Peter Kwon, Head of the KBFG IR division. We will now begin the 2025 first-half business results presentation.

我是 KBFG IR 部門主管 Peter Kwon。我們現在開始2025年上半年經營業績報告。

Thank you very much for participating in today's earnings release. We have here with us executives from the group, including CFO, Nah Sang Rok, and other executives from the group.

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 Nah Sang Rok，以及集團的其他高階主管。

First, our Group CFO will cover 2025 first-half major performance highlights. After that, we will have a Q&A session. Like in the previous quarter, please note that after our real-time Q&A session, we have set aside additional time for management team to answer questions that were previously submitted by our shareholders.

首先，我們的集團財務長將介紹2025年上半年的主要業績亮點。之後我們將進行問答環節。與上一季一樣，請注意，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先前提出的問題。

I will now invite our Group CFO to walk us through the first-half business results of 2025.

現在，我邀請集團財務長向我們介紹 2025 年上半年的經營績效。

Good afternoon.

午安.

I am Nah Sang Rok, CFO of KB Financial Group. Thank you all for joining the first-half 2025 earnings release presentation. Today, I will walk through key results of the first half and update you on the shareholder value and return, then move on to the details of our earnings.

我是 KB 金融集團財務長 Nah Sang Rok。感謝大家參加 2025 年上半年收益發表會。今天，我將介紹上半年的主要業績，並向大家通報股東價值和回報，然後再介紹我們的獲利細節。

First, page 1, Q2 net profit reported KRW1,738.4 billion with first-half cumulative profit reporting KRW3,435.7 billion and ROE of 13.03%. Increase in RWA for the first half on a cumulative basis was managed at around 2.4%, whilst CET1 ratio as of June end came in at 13.74%.

首先第1頁，第二季淨利1.7384兆韓元，上半年累計利潤3.4357兆韓元，ROE為13.03%。上半年風險加權資產累計增幅控制在2.4%左右，6月底的CET1比率為13.74%。

All in all, we maintained the balance between resilient earnings power and stable capital management. And under KB's shareholders' return framework, we will be using what is above CET1 ratio of 13.5%, which is KRW850 billion in total as funds for shareholder return in the second half.

總而言之，我們維持了韌性獲利能力與穩定資本管理之間的平衡。而在KB股東回報框架下，我們將使用高於CET1比率13.5%的資金，總計8,500億韓元作為下半年股東回報的資金。

When accounting for KRW300 billion of proactive buyback done in the second quarter, second round of shareholder return upcoming in the second half will amount to around KRW1.150 trillion. Out of the total annual cash dividend of KRW1.34 trillion for 2025, today's BOD resolution decided on KRW335 billion of equally portioned dividend for second quarter and DPS of KRW920.

如果算上第二季主動回購的3,000億韓元，下半年第二輪股東報酬率將達到1.150兆韓元左右。在2025年全年1.34兆韓元的現金股息中，今天的董事會決議決定向第二季度派發3350億韓元的均等股息，每股派息9.20億韓元。

Also, we decided to first buy back and cancel KRW660 billion of treasury shares within the scope of distributable profit. Out of KRW850 billion, the KRW190 billion, which is excess capital, would be used as fund for shareholder return at book closing of 2025 accounts following the BOD resolution. And this amount will be classified and attributed to shareholder return for 2025.

此外，我們也決定在可分配利潤範圍內先行回購並註銷6,600億韓元庫存股。8,500億韓元中的1,900億韓元（即剩餘資本）將根據董事會決議，在2025年帳目結帳時用作股東返還資金。該金額將被歸類併計入2025年的股東報酬。

It's inevitable that portions of the second round of shareholder return for 2025 will be first paid in Q2, while the rest will be returned by early next year, which is due to the progressive expansion of shareholder return at KBFG versus the past practices as we exceeded the profit available for dividend payout. I want to reiterate that KB's firm commitment to shareholder return and its promise stays unchanged.

2025年第二輪股東回報中，部分將在第二季率先支付，其餘部分將在明年年初返還，這是由於KBFG的股東回報相對於過去的做法逐步擴大，因為我們超過了可用於分紅的利潤。我想重申，KB對股東回報的堅定承諾和承諾保持不變。

In particular, total shareholder return for 2025 is KRW3.010 trillion, which is a significant increase year over year. And although TSR may slightly fluctuate depending on the size of annual net income, we expect record-high TSR for the year. Also, we plan to have interim dividend payout from the subsidiaries in the second half to secure ample amount of distributable income for the upcoming year.

尤其是2025年的股東總回報達到3.010兆韓元，較去年同期大幅成長。儘管 TSR 可能會根據年度淨收入的規模而略有波動，但我們預計今年的 TSR 將創歷史新高。此外，我們計劃在下半年向子公司派發中期股息，以確保來年有充足的可分配收入。

Next is page 2. We shared our shareholder return plan for both first half and second half of 2025 with the market for the benefit of transparency and are faithfully implementing the plan.

接下來是第 2 頁。為了提高透明度，我們向市場分享了2025年上半年和下半年的股東回報計劃，並忠實執行該計劃。

In the second half, we plan to focus on three key directions in terms of capital discipline. First, promise to the market. We know the gravity of this commitment and will hence implement the announced shareholder return framework with consistency. Based on our execution capabilities, we will further solidify trust from the market.

下半年，我們計劃在資本紀律方面將重點放在三個方向上。一是向市場做出承諾。我們深知這項承諾的重要性，因此將始終如一地執行已宣布的股東回報框架。憑藉我們的執行力，我們將進一步鞏固市場的信任。

Second, we will manage risk-weighted assets with greater precision. RWA growth will be controlled at an appropriate level, but rather than just managing the rate of RWA growth, we will change the fundamentals to one that guarantees our bottom line.

二是提高風險加權資產管理的精準度。RWA的成長將被控制在適當的水平，但我們不會僅僅管理RWA的成長率，而是將基本面轉變為確保我們底線的基本面。

Third, under such capital discipline, to ensure the shareholder return expansion is not one-off event. We will continue to balance between ROE and capital ratio as done so in the first half of the year.

第三，在這樣的資本紀律下，保證股東回報的擴大不是一次性事件。我們將繼續像上半年一樣平衡ROE和資本比率。

Now, moving on to KBFG's business performance, group's net profit for Q2 was KRW1,738.4 billion. And on a first-half basis, it was up 23.8% year over year, reporting KRW3,435.7 billion. Such result was driven by higher non-interest income and the recovery from non-operating profit, which drove the group's net profit.

現在來看看KBFG的經營業績，該集團第二季的淨利為17,384億韓元。上半年營業額年增23.8%，達34,357億韓元。這一業績得益於非利息收入增加以及非營業利潤的復甦，從而推動了集團的淨利潤。

Non-interest income was up 10.9% year over year. And due to the absence of ELS provisioning seen last year and gains from disposition of assets under consolidated funds, non-operating income increased by KRW1,104.7 billion year over year.

非利息收入年增10.9%。並且由於沒有去年的ELS撥備以及合併資金下資產處置收益，非營業收入較去年同期增加了11,047億韓元。

Also, non-bank accounted for 39% of the group's first-half net profit. Diversified business portfolio of the group is expected to play a critical role in securing earnings stability in times of interest rate decline and boom in the stock market trading.

此外，非銀行業務佔該集團上半年淨利的39%。預計該集團多元化的業務組合將在利率下降和股票市場交易繁榮時期確保盈利穩定方面發揮關鍵作用。

With that said, I will now move on to the breakdown of the earnings results. 2025 first-half group net interest income posted KRW6,368.7 billion. And despite the net interest margin contraction following the rate cut through stable loan growth, we achieved results similar to the same period last year.

話雖如此，我現在將轉到盈利結果的細分。 2025 年上半年集團淨利息收入為 6,3,687 億韓元。儘管降息後淨利差有所收縮，但透過穩定的貸款成長，我們取得了與去年同期類似的表現。

However, it decreased 4.8%. Not QoQ, because around KRW159.1 billion of the expenses from the liquidation of consolidated funds in Q2 was temporarily reflected on interest expenses. And excluding this on a recurring level, we are maintaining the level of the previous quarter.

但下降了4.8%。並非季增，因為第二季合併資金清算費用中約有1,591億韓元暫時反映在利息支出中。除此之外，我們還維持了上一季的水準。

Next, I will cover bank loans in won growth. As of end June 2025, bank loans in won posted KRW372 trillion and grew 2.4% YTD and 1.4% QoQ. Household loans posted KRW181 trillion and mortgage loans and unsecured loans grew evenly and grew 0.9% QoQ.

接下來，我將討論韓國經濟成長中的銀行貸款。截至 2025 年 6 月底，韓元銀行貸款總額為 372 兆韓元，年初至今成長 2.4%，較上季成長 1.4%。家庭貸款達181兆韓元，抵押貸款和無抵押貸款成長均衡，季增0.9%。

Corporate loans posted KRW191 trillion and centering on large corporates and prime SMEs grew 1.9% QoQ. We plan to operate our loan policy from a comprehensive profitability perspective in the second half as well and stably secure our interest income base.

企業貸款餘額為191兆韓元，以大型企業和優質中小企業為主，較上季成長1.9%。我們計劃在下半年繼續以綜合盈利的角度來執行我們的貸款政策，並穩定地確保我們的利息收入基礎。

Next is net interest margin that you can see on the bottom-right side. Q2 bank NIM posted 1.73% despite efforts to cut funding costs, including increasing core deposits. And with the loan yield contraction following the market rate cut, it went down 3 bp QoQ.

接下來是淨利差，您可以在右下角看到。儘管銀行努力削減融資成本，包括增加核心存款，但第二季淨利差仍為 1.73%。且隨著市場利率下調，貸款殖利率也隨之收縮，季減3個基點。

Meanwhile, group NIM posted 1.96%, and the impact to the bank NIM decline was further compounded by the decline in credit card receivables yield and went down 5 bps QoQ. In the second half as well, since we expect the interest rate decline trend to continue through core deposit growth and profitability-based loan portfolio management, we plan to minimize the contraction of NIM as much as possible.

同時，集團淨利差為1.96%，信用卡應收帳款收益率的下降進一步加劇了銀行淨利差下降的影響，季減5個基點。下半年，我們預計透過核心存款成長和基於獲利能力的貸款組合管理，利率下降趨勢仍將持續，因此我們計劃盡可能減少淨利差的收縮。

Next, I will cover non-interest income. First-half group non-interest income posted KRW2,723.3 billion and improved 10.9% YoY. Due to the decline in exchange rates and the rise in stock market index performance related to securities and derivatives significantly improved, leading to an increase of KRW211.7 billion of other operating income compared to the same period last year.

接下來，我將介紹非利息收入。上半年集團非利息收入達2.7233兆韓元，年增10.9%。由於匯率下降以及股市指數上漲，相關證券及衍生性商品的業績大幅改善，導致其他營業收入較去年同期增加2,117億韓元。

On the other hand, first-half group net fee income posted KRW1.966 trillion, a 2.9% increase YoY. And with the increase in bancassurance sales commissions and securities brokerage fees, combined with higher fee income from the disposal of assets under management, achieved results, which was a KRW56.3 billion increase compared to the same period last year.

另一方面，上半年集團淨費用收入為1.966兆韓元，年增2.9%。而隨著銀保銷售佣金及證券經紀手續費的增加，加上管理資產處置手續費收入的增加，取得了比去年同期增加563億韓元的業績。

In particular, Q2 group net fee income posted KRW1.032 billion, a 10.5% increase QoQ and surpassed for the first time on a quarterly basis KRW1 trillion. I believe these results were a fruit of our consistent efforts to expand fee income that does not accompany RWA growth and our growth in non-interest income by our subsidiaries. Going forward, based on diversified group portfolio, we will gradually achieve qualitative improvement of our profit structure.

其中，第二季集團淨費用收入達10.32億韓元，季增10.5%，單季首度突破1兆韓元。我相信這些結果是我們不斷努力擴大不伴隨 RWA 成長的費用收入和我們子公司的非利息收入成長的成果。未來，我們將基於多元化的集團組合，逐步實現利潤結構質的提升。

Next, I will walk you through our G&A expenses. First-half G&A expenses posted KRW3,355.3 billion, a 4.1% growth YoY. First-half group CIR is being maintained at a stable level of 36.9%. Going forward, we will actively expand investments to secure future growth drivers, including exploring new businesses and enhancing productivity through AI and also strive to rationalize costs, focusing primarily on rationalizing recurring expenses and continue our group's CIR downward stabilization trend.

接下來，我將向您介紹我們的一般及行政費用。上半年一般及行政費用為33,553億韓元，較去年同期成長4.1%。上半年集團CIR維持在36.9%的穩定水準。展望未來，我們將積極擴大投資以確保未來的成長動力，包括探索新業務和透過人工智慧提高生產力，同時努力合理化成本，主要集中在合理化經常性費用，並延續集團CIR向下穩定的趨勢。

Next is page 8, group's provision for credit losses. Q2 provision for credit losses posted KRW655.1 billion and group credit cost posted 55 bp and maintained a similar level to the previous quarter. In the previous quarter, in the Card division, which the market was concerned about as a result of implementing focused measures to improve asset quality, including sale of non-performing loans and reinforcement of short-term delinquency recovery teams, the scale of provisioning was significantly reduced compared to the previous quarter.

接下來是第8頁，集團的信用損失準備金。第二季信貸損失準備金為 6,551 億韓元，集團信貸成本為 55 個基點，與上一季維持相似水準。上一季度，市場關注的信用卡部門透過實施不良貸款出售、加強短期拖欠清欠隊伍建設等集中措施改善資產質量，撥備規模較上一季大幅減少。

However, while maintaining a conservative provisioning stance, bank and securities additionally provisioned around KRW100 billion for real estate PF sites and guaranteed completion real estate trust projects, leading to Q2 credit loss provisioning level. And CCR is being maintained at a similar level to the previous quarter. And the NPL coverage ratio slightly improved QoQ.

不過，銀行和證券在維持保守撥備立場的同時，為房地產PF用地和保證竣工房地產信託項目額外計提了約1000億韓元撥備，導致第二季度信貸損失撥備水平上升。CCR 維持在與上一季相似的水平。不良貸款撥備覆蓋率較上季略有提高。

Meanwhile, in the second half of the year, along with key rate cuts, driven by the government's economic stimulus efforts such as supplementary budget and support for vulnerable borrowers through the establishment of a bad bank, we expect that the asset quality management conditions will improve favorably, and we believe that the credit cost has passed its cyclical peak and is entering into a downward phase. In the second half, we will do our best to achieve meaningful improvements in asset quality by actively promoting the rebalancing of nonperforming assets and reducing high-risk asset limits.

同時，下半年，隨著主要利率下調，在政府補充預算、透過設立壞帳銀行支持弱勢借款人等經濟刺激措施的推動下，我們預計資產品質管理狀況將得到改善，我們認為信貸成本已經度過週期性高峰，正在進入下降階段。下半年，我們將積極推動不良資產再平衡，降低高風險資產限額，並努力實現資產品質的明顯改善。

Let's go to the next page. Q2 group NPL ratio posted 0.72% and improved 0.04 percentage points QoQ. Group's NPL coverage ratio improved 5.4 percentage points QoQ and recorded 138.5% and has sufficient loss absorption capacity to prepare for potential non-performing assets.

我們進入下一頁。第二季集團不良貸款率為0.72%，季減0.04個百分點。集團不良貸款覆蓋率較上季提升5.4個百分點至138.5%，具備充足的損失吸收能力，為潛在不良資產做好準備。

Lastly, I will cover group's capital ratio. As I explained previously, group's BIS ratio at the end of June 2025 on a preliminary basis posted 16.36% and the CET1 ratio recorded 13.74% and secured the industry's highest level of capital adequacy.

最後，我將介紹集團的資本比率。正如我之前所解釋的，集團2025年6月底的BIS比率初步為16.36%，CET1比率為13.74%，確保了行業最高的資本充足率。

As of end June '25, group's risk-weighted assets posted KRW354 trillion and grew 2.4% YTD, and considering our annual RWA growth target, is being maintained at and managed at appropriate and controlled pace of growth. The following pages contain details on the performance we have just presented, so please refer to it if needed.

截至2025年6月底，集團風險加權資產達354兆韓元，年初至今成長2.4%，考慮到我們的年度風險加權資產成長目標，該集團正維持並管理適當且可控的成長速度。以下頁麵包含我們剛剛展示的表演的詳細信息，如有需要，請參考。

This concludes KB Financial Group's 2025 first-half business performance report. Thank you for your attention.

這是KB金融集團2025年上半年營運業績報告。感謝您的關注。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助此活動的公司提供。