KB Financial Group (A105560) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 reached KRW 1,892.4 billion, up 11.5% YoY, driven by record-high non-interest income and stable NII base.

• Non-bank subsidiaries contributed 43% of group net profit, reflecting successful capital market expansion and diversification.

• Immediate cancellation of 14.26 million treasury shares (3.8% of issued shares), the largest in industry value, was executed.

• Dividend per share for Q1 2026 increased 25.3% YoY to KRW 1,143, with ongoing share buybacks totaling KRW 1.2 trillion for 1H26.

• Total consolidated assets reached KRW 829,741,377 million as of March 31, 2026.

Financial highlights

• Net interest income rose 2.2% YoY to KRW 3,334.8 billion, supported by core deposit growth and stable NIM.

• Non-interest income surged 27.8% YoY to KRW 1,650.9 billion, led by a 45.5% increase in fee and commission income.

• G&A expenses increased YoY to KRW 1.7649 trillion, mainly due to higher taxes and bonuses.

• Provision for credit losses dropped 24.8% YoY to KRW 493.2 billion, with CCR at 0.40%.

• Group CIR stood at 35.4%, reflecting stable cost efficiency.

Outlook and guidance

• Household loan growth targeted at 1%-2%, corporate loans at 6%-7%, with overall credit growth around 4% for 2026.

• NIM expected to remain stable or slightly increase, reflecting market rate trends.

• Credit cost ratio guidance maintained at early to mid-40 bps, with a conservative provisioning stance.

• Continued focus on expanding non-interest income and capital market activities.

• Ongoing share buybacks and quarterly-even dividend policy to enhance shareholder returns.