[Featured Stock] KB Financial, Strong Despite ELS Compensation Due to Positive Capital Policy Expectations

by Lee Seunghyeong

Published 13 Mar.2024 13:53(KST)

KB Financial's stock price is on the rise. Despite ELS compensation, the sufficient capital ratio is expected to impose few restrictions on capital policy, which seems to be influencing the stock price.

KB Financial Group, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

As of 1:52 PM on the 13th, KB Financial is trading at 77,700 KRW, up 6.15% (4,500 KRW) from the previous day. During the session, it rose to 78,500 KRW, marking a 52-week high.

Park Hye-jin, a researcher at Daishin Securities, said, "The shareholder return ratio based on the settlement is 38.8%, showing active willingness to participate in the corporate value value-up program recently announced by the government," adding, "We expect a progressive dividend policy befitting a financial holding company with the highest capital ratio in the country."

Researcher Park continued, "Considering the basic compensation ratio and investor considerations, the estimated compensation amount related to ELS is expected to be in the range of 600 billion to 900 billion KRW," and added, "As of the end of last year, the Common Equity Tier 1 (CET1) ratio was 13.6%, so even if the maximum estimated compensation amount is paid, it still exceeds 13%, and a sufficient buffer has been secured in preparation, so there will be no restrictions on dividend policy due to this issue."