KB Earns 5.8 Trillion Won in Net Income, "Returns What It Makes"... Largest-Ever Shareholder Payout

KB Financial Group has unveiled the largest shareholder return plan in its history, fully launching its push to become a "national dividend stock." On the back of profit growth centered on its banking business and expansion in its non-interest income segment, the group posted annual net income in the 5 trillion won range, and this strong performance has translated into an aggressive shareholder return policy.

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KB Financial’s board of directors announced on the 5th that it has resolved to pay a dividend of 1,605 won per share for the fourth quarter of 2025. This is about twice the level of the same period a year earlier. Including the quarterly dividends already paid, the total annual cash dividend amounts to 1.58 trillion won, up 32% from the previous year. The annual dividend payout ratio came in at 27%, the highest level ever for the group, surpassing the 25% threshold commonly used to define high-dividend companies. A payout ratio of 27% carries significance beyond the number itself. It exceeds the 25% standard used to qualify companies for separate taxation of dividend income, meaning that KB Financial now meets the conditions to receive related tax benefits.

KB Financial has set aside a total of 2.82 trillion won as the first-stage shareholder return pool for 2026. This amount was calculated in linkage with the common equity Tier 1 (CET1) ratio at the end of the previous year, and is scheduled to be executed as 1.62 trillion won in cash dividends and 1.2 trillion won in share buybacks.

The expansion of shareholder returns at KB Financial is underpinned by confidence in its earnings. KB Financial’s cumulative net income for 2025 was tallied at 5.843 trillion won. Despite an unfavorable environment marked by heightened volatility in exchange rates and interest rates, profits at key subsidiaries such as the bank and securities firm increased, and earnings in the non-interest segment also surged, driven mainly by capital markets-related income. The group’s cumulative return on equity (ROE) last year was 10.86%, an improvement of 1.1 percentage points from a year earlier, once again demonstrating solid earnings power and capital efficiency.

Although interest income declined, growth in the non-interest segment helped defend overall earnings. Supported by higher revenues in the securities and wealth management businesses, net fee and commission income increased 6.5% year-on-year on a cumulative basis, surpassing the 1 trillion won mark per quarter for the first time. Fourth-quarter net income fell to 721.3 billion won from the previous quarter, affected by early retirement program costs and the buildup of provisions related to equity-linked securities (ELS).

Na Sangrok, Executive Managing Director and Chief Financial Officer of KB Financial, explained, "Despite an unfavorable environment with increased volatility in exchange rates and interest rates, profits at our core subsidiaries expanded, and performance in the non-interest segment grew significantly, centered on capital markets-related income, thereby enhancing the group’s earnings-generating capacity."

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Another factor that enabled KB Financial to pursue such aggressive shareholder returns is the improvement in cost efficiency and profitability. The group’s cost-to-income ratio (CIR) stood at 39.3%, the lowest level in its history, while ROE and return on assets (ROA) improved to 10.86% and 0.75%, respectively.

Figures also show that the group retains ample capital capacity even after large-scale dividends and share buybacks. As of the end of December 2025, the common equity Tier 1 (CET1) ratio was 13.79%, and the BIS total capital adequacy ratio was 16.16%, indicating that capital adequacy has been stably maintained even amid heightened exchange rate volatility.

KB Financial’s 2025 results were driven by its banking and securities businesses. KB Kookmin Bank defended its interest income through loan asset growth and reduced funding costs, while improved fee income and the reversal of ELS-related provisions combined to significantly boost net income.

KB Securities also saw improved results thanks to higher brokerage commissions and gains on securities valuation amid a booming stock market. In contrast, KB Insurance recorded lower net income despite higher investment gains, due to a rising loss ratio and base effects. KB Kookmin Card and KB Life Insurance also saw their results deteriorate, affected by card finance regulations and higher cost burdens in the case of the card business, and increased insurance benefit payments in the case of the life insurer.

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