KB Financial Group Reports 4.4096 Trillion KRW Net Profit Last Year, Up 27.6% Year-on-Year

Implementing Share Buyback for Shareholder Returns

Q4 Net Profit Recorded at 637.2 Billion KRW

[Asia Economy Reporter Sim Nayoung] KB Financial Group announced on the 8th that it recorded a net income of 4.4096 trillion KRW last year. On this day, profits increased mainly due to interest income and net fee income, and growth through mergers and acquisitions led to a 27.6% (954.4 billion KRW) increase compared to the previous year (3.4552 trillion KRW).

The net income for the 4th quarter was 637.2 billion KRW. Due to one-time expenses such as voluntary retirement costs, future economic outlook, and proactive loan loss provisions related to COVID-19, as well as seasonal factors, it sharply decreased compared to the previous quarter (1.2981 trillion KRW). However, ordinary net income remained at about 1.1 trillion KRW.

Last year, the group's Return on Equity (ROE) was recorded at 10.22%. The proportion of non-bank sectors in the group's net income also expanded from around 30% in the past to 42.6%. Last year, the dividend payout ratio recovered to 26.0%, the level before the COVID-19 outbreak. The dividend per share (2,940 KRW) increased by about 66% compared to the previous year.

KB Financial Group stated, "To enhance shareholder value, we have decided to cancel 150 billion KRW worth of treasury shares and continue efforts for shareholder return policies that meet global standards."

In preparation for uncertainties related to COVID-19, risk management has been strengthened by setting aside additional loan loss provisions of about 264 billion KRW in the 4th quarter. Following the additional loan loss provisions of about 377 billion KRW in 2020, this additional provision has enhanced loss absorption capacity.

At the end of last year, the group's total assets amounted to 663.9 trillion KRW.

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