[Click eStock] "KB Financial, Interim Dividend After June... Possible Stock Price Recovery"

[Asia Economy Reporter Ji Yeon-jin] Meritz Securities suggested the possibility of a stock price recovery as KB Financial mentioned policies to enhance shareholder value, such as interim dividends, after the government's dividend restraint recommendation period ends at the end of June.

KB Financial recently adjusted its dividend payout ratio to 19.96%, just under 20%, in accordance with the financial authorities' recommendation. However, through its earnings briefing, KB Financial announced that after the dividend restraint recommendation period ends at the end of June, it will review and implement various shareholder value enhancement policies, including interim dividends, share buybacks and cancellations, and restoring the dividend payout ratio.

Analyst Eun Kyung-hwan of Meritz Securities stated, "Considering KB Financial's leading shareholder return policies and the industry's strongest capital strength, we expect this year's dividend payout ratio to return to the 2019 level of 26%, and we also leave open the possibility of implementing interim dividends depending on real economic conditions." He added, "Since the stock price has already undergone an adjustment process reflecting concerns related to dividends, it is now necessary to focus more on whether and how strongly the recovery will occur."

Meanwhile, KB Financial's controlling shareholder net profit for the fourth quarter recorded 577.2 billion KRW, an 8% increase compared to the previous year, meeting market expectations.

(+8.0% YoY, -50.5% QoQ) it met both our estimates and consensus. Net interest margin (NIM) improved by 2 basis points, and although loan growth was only 1.2%, low-cost deposits (+6.3%) increased significantly. While there is downward margin pressure during the asset price re-pricing process, it is analyzed that the current level can be sufficiently defended based on deposit competitiveness. Fee income was also evaluated to have maintained the previous quarter's level due to a favorable financial market and increased credit card fees.

This content was produced with the assistance of AI translation services.