KB Financial Group, in its Q3 2023 Business Results Presentation, announced an 8.2% YoY increase in cumulative net profit, reaching KRW4,370.4 billion. However, the company noted a QoQ decrease of 8.4% in Q3 net profit, attributing it to financial market volatilities and one-off losses. The group's cumulative ROE for the year was reported at 11.7%, and the annualized EPS increased by 8.3% YoY to KRW14,691. KB Financial also declared a quarterly dividend of KRW510 per share, reflecting its commitment to a progressive dividend payout policy.
Key takeaways from the earnings call include:
- The company's net profit for Q3 was KRW1,373.7 billion, down 8.4% QoQ.
- The credit cost for the group in Q3 stood at 52 basis points, and the NPL ratio was 0.48%.
- KB Financial Group's CET1 ratio was 13.70%, indicating a strong financial position.
- The company reaffirmed its progressive dividend payout policy and announced a quarterly dividend of KRW510 per share.
- The group's estimated BIS ratio was 16.76%, and the bank loans in won increased by 1.8% QoQ.
- The net interest margin for the group was 2.09%, and 1.84% for the bank.
During the earnings call, KB Financial Group emphasized its focus on improving company valuation and canceling treasury shares. The company also discussed potential changes in actuarial assumptions and guidelines, as well as stress test and buffer capital methodologies. Providing updates on their overseas real estate investments, the group stated that they have minimal risk of losses.
In response to a query from Goldman Sachs about the company's shareholder return policy, KB Financial Group stated that it aims to emulate the shareholder return policies of large U.S. banks. The company also confirmed that it has made its treasury share buyback plans public and has been paying quarterly dividends.
Regarding net interest margin (NIM), the company expects it to remain relatively flat in Q4. The details of collateral LGD for Q4 provisioning have not been finalized, but the company does not anticipate a significant impact on their previous guidance. The earnings presentation concluded with no further questions.
InvestingPro Insights
In light of the recent Q3 2023 Business Results Presentation by KB Financial Group, it is important to consider some key insights provided by InvestingPro. According to InvestingPro data, the company has a market cap of 14.87B USD and a P/E ratio of 4.51 as of Q3 2023. The revenue growth for the last twelve months as of Q3 2023 stands at 11.88%, indicating a positive trend.
Two noteworthy InvestingPro Tips for KB Financial Group are that the company has maintained dividend payments for 15 consecutive years and that it is a prominent player in the Banks industry. These tips, along with the company's commitment to a progressive dividend payout policy as stated in their recent earnings call, make a compelling case for potential investors.
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