[Click eStock] "KB Financial, Sustainable Value-Up Expected"

Investment Opinion: "Buy"

Kyobo Securities maintained a 'Buy' rating and a target price of 110,000 KRW for KB Financial Group on the 4th, stating that a sustainable value-up program is expected.

Ji-young Kim, a researcher at Kyobo Securities, explained, "KB Financial is expected to improve both interest and non-interest income this year based on solid profit-generating capabilities, and a predictable shareholder return policy is anticipated due to the industry's top-tier Common Equity Tier 1 (CET1) ratio." Last year, KB Financial's CET1 ratio was 13.51%.

KB Financial posted a record high net income (consolidated basis) of 5.0782 trillion KRW last year, a 10.5% increase compared to the previous year. This is attributed to increases in net interest income and net fee income, as well as a decrease in credit loss provisions (allowance for loan losses). Net interest income was approximately 12.8 trillion KRW, up 5.3% year-on-year, and net fee income was about 3.8 trillion KRW, up 4.8% year-on-year. Additionally, last year's loan loss provisions amounted to 2.0 trillion KRW, down 35.0% from the previous year.

Researcher Kim analyzed, "It is judged that the impact of the group's proactive provisioning, which has been continuously carried out, is being managed at a stable level."

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