[Click eStock] KB Financial's Quarterly Dividend Possibility Increases... Positive Active Shareholder Returns

[Asia Economy Reporter Myung-hwan Lee] Samsung Securities analyzed on the 17th that the possibility of quarterly dividends for KB Financial Group has increased, and that it will gradually expand quarterly dividends. The investment opinion and target price were maintained at 'Buy' and 70,000 KRW, respectively.

KB Financial Group decided the record date for shareholders eligible for the first quarter dividend as the 31st of this month and announced this on the 16th. However, it stated that the decision on whether to implement the first quarter dividend will be made later by the board of directors, considering uncertainties related to COVID-19 and financial impacts.

Samsung Securities predicted that KB Financial Group will adopt a strategy of gradually increasing quarterly dividends. Researcher Jo A-hae of Samsung Securities said, "For visibility and enhancing shareholder returns, quarterly equal dividends like those of large banks in developed countries should be the goal," but added, "Considering the current uncertain situation in the banking industry due to COVID-19 and the Ukraine crisis, and the fact that quarterly dividends are just beginning, the strategy will be to gradually increase quarterly dividends rather than immediately adopting equal quarterly dividends."

Earlier, Shinhan Financial Group, which was the first financial holding company to decide on quarterly dividends last year, paid 300 KRW and 260 KRW for the second and third quarters, respectively. This corresponds to 15.3% and 13.3% of the annual dividend of 1,960 KRW.

Samsung Securities analyzed that KB Financial Group has focused on increasing shareholder returns by conducting multiple share buybacks even before COVID-19, and actively pursuing shareholder return policies such as canceling some of the treasury shares held. Researcher Jo evaluated, "It is positive from the perspective of expanding efforts to increase shareholder returns rather than the dividend size itself."

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