Kb Financial Group (KB) AI Stock Analysis

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Kb Financial Group

(NYSE:KB)

Rating:78Outperform

Price Target:

$91.00

▲(15.32%Upside)

KB Financial Group's strong earnings call performance and bullish technical indicators drive its solid overall score. Valuation metrics add further appeal with a low P/E ratio and consistent dividends. While financial performance is generally positive, cash flow concerns and increased leverage suggest areas for caution.

Kb Financial Group (KB) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$27.62B

Dividend Yield2.69%

Average Volume (3M)184.88K

Price to Earnings (P/E)7.4

Beta (1Y)0.84

Revenue Growth-3.00%

EPS Growth32.85%

CountryUS

Employees141

SectorFinancial

Sector Strength75

IndustryBanks - Regional

Share Statistics

EPS (TTM)3.06

Shares Outstanding381,462,100

10 Day Avg. Volume218,250

30 Day Avg. Volume184,878

Financial Highlights & Ratios

PEG Ratio0.60

Price to Book (P/B)0.48

Price to Sales (P/S)0.00

P/FCF Ratio2.21

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusModerate Buy

Number of Analyst Covering0

Kb Financial Group Business Overview & Revenue Model

Company DescriptionKB Financial Group Inc. is a leading financial services provider in South Korea, offering a comprehensive range of products and services across diverse sectors including banking, investment, and insurance. As a prominent player in the financial industry, the company operates through its subsidiaries, which include KB Kookmin Bank, KB Securities, KB Insurance, and KB Card, among others. The group is committed to delivering innovative financial solutions to individual and corporate clients, leveraging its extensive network and expertise.

How the Company Makes MoneyKB Financial Group generates revenue primarily through its banking operations, which include interest income from loans and deposits, as well as fees from various banking services. Another significant revenue stream comes from its insurance business, which involves the collection of premiums from policyholders and investment income from their reserves. The group's investment and securities division also contributes to its earnings through brokerage fees, asset management services, and proprietary trading. KB Financial Group benefits from strategic partnerships and a strong domestic market presence, which enhance its ability to attract and retain customers across its different financial segments.

Kb Financial Group Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 33.32%|

Next Earnings Date:Jul 29, 2025

Earnings Call Sentiment Positive

The earnings call highlighted strong financial performance, including record net profits and high capital ratios, alongside robust shareholder returns. However, challenges were noted in specific segments such as decreased interest income and increased provisions for credit losses, especially in the real estate sector. The overall outlook remains stable with proactive measures to maintain performance amidst uncertainties.

Q1-2025 Updates

Positive Updates

Record High Net Profit

KBFG's Q1 2025 net profit posted KRW1.6973 trillion, showcasing a solid performance in profitability and capital efficiency.

Strong Capital Ratios

The CET1 ratio increased to 13.67%, up by 14 basis points Q-o-Q, maintaining the industry's highest capital ratio.

Improved Operating Profit

Total operating profit reached approximately KRW4.6 trillion, demonstrating KBFG's solid earning power.

Shareholder Returns and Dividends

The BOD resolved a KRW912 per share quarterly cash dividend and a KRW300 billion share buyback, increasing the annual dividend by KRW100 billion compared to the plan.

Non-interest Income Growth

Q1 2025 non-interest income improved Q-o-Q and Y-o-Y, driven by securities performance and an increase in other operating income.

Negative Updates

Decreased Interest Income

Bank interest income from loans decreased due to falling market rates, though this was offset by increased deposits.

Insurance Operating Profits Decline

Insurance operating profits amounted to KRW437.8 billion, down slightly Y-o-Y, though there was a modest increase on a recurring basis.

Increased Provisions for Credit Losses

Q1 provisions for credit losses amounted to KRW655.6 billion, with credit costs up slightly Q-o-Q due to economic slowdowns and increased SME delinquencies.

Potential Exposure to Real Estate Risks

Concerns over real estate and overseas real estate exposures, with conservative provisions set aside for potential future challenges.

Company Guidance

In the 2025 Q1 earnings call, KBFG delivered robust financial metrics, reporting a net profit of KRW1.6973 trillion and achieving a group ROE of 13.04%. The Common Equity Tier 1 (CET1) ratio rose to 13.67%, reflecting a 14 basis points increase quarter-over-quarter. The group's capital strength facilitated an enhancement in shareholder returns, with KRW912 per share cash dividends and a KRW300 billion share buyback and cancellation. Gross net interest income was reported at KRW3.2622 trillion, with a slight decrease in bank interest income due to falling market rates, counterbalanced by an increase in core deposit inflows. The group's non-interest income improved to KRW1.292 trillion, supported by a significant rise in securities-related performance. The net interest margin (NIM) for the group and the bank increased by 3 and 4 basis points quarter-over-quarter, respectively. The group's operating profit hit a record high of approximately KRW4.6 trillion, with a continued focus on maintaining a stable capital ratio and enhancing shareholder value amidst market volatilities.

Kb Financial Group Financial Statement Overview

Summary

KB Financial Group shows solid revenue growth and profitability despite some operational efficiency variances. The stable balance sheet is slightly offset by increased leverage, and recent challenges in cash flow management demand attention.

Income Statement

Positive

The company's revenue has shown solid growth over the years, with a notable increase from 2023 to 2024. The gross profit margins are strong, reflecting efficient cost management. However, EBIT margin fluctuated, indicating some inconsistency in operational efficiency.

Balance Sheet

Positive

The debt-to-equity ratio indicates a moderate level of leverage, typical of regional banks, but it has increased slightly over the years. The return on equity is satisfactory, showing good profitability relative to equity. The equity ratio is stable, suggesting a balanced approach to asset financing.

Cash Flow

Positive

The company experienced fluctuations in free cash flow, with a significant decline in the latest period. The operating cash flow was negative for 2024, which could pose sustainability concerns if it persists. The free cash flow to net income ratio indicates that the cash generation from operations is not currently supporting net income effectively.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
31.55T	15.01T	13.08T	16.68T	17.04T	15.05T
	Gross Profit
32.86T	15.01T	13.03T	12.09T	13.30T	15.05T
	EBIT
7.91T	6.99T	6.74T	5.39T	6.42T	300.60B
	EBITDA
8.76T	7.90T	6.99T	6.27T	7.09T	0.00
	Net Income Common Stockholders
5.73T	5.08T	4.63T	4.15T	4.41T	3.47T
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
10.00T>	10.00T>	10.00T>	90.36T	92.43T	88.54T
	Total Assets
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	10.00T>
	Total Debt
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	90.35T
	Net Debt
10.00T>	10.00T>	90.60T	10.00T>	71.42T	63.64T
	Total Liabilities
10.00T>	10.00T>	10.00T>	10.00T>	10.00T>	92.39T
	Stockholders Equity
58.23T	57.89T	56.93T	48.36T	47.46T	42.50T
Cash Flow		Free Cash Flow
-16.05T	-20.14T	3.43T	5.15T	-7.18T	-12.15T
	Operating Cash Flow
-15.57T	-19.80T	4.11T	5.69T	-6.70T	-11.54T
	Investing Cash Flow
-1.27T	-3.83T	-3.52T	-20.29T	-3.86T	-10.99T
	Financing Cash Flow
16.20T	21.84T	-1.24T	31.75T	43.32T	25.26T

Kb Financial Group Technical Analysis

Technical Analysis Sentiment

Positive

Last Price78.91

Price Trends

50DMA

67.23

Positive

100DMA

61.85

Positive

200DMA

62.64

Positive

Market Momentum

MACD

3.47

Positive

RSI

62.87

Neutral

STOCH

36.87

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KB, the sentiment is Positive. The current price of 78.91 is above the 20-day moving average (MA) of 76.33, above the 50-day MA of 67.23, and above the 200-day MA of 62.64, indicating a bullish trend. The MACD of 3.47 indicates Positive momentum. The RSI at 62.87 is Neutral, neither overbought nor oversold. The STOCH value of 36.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KB.

Kb Financial Group Risk Analysis

Kb Financial Group disclosed 44 risk factors in its most recent earnings report. Kb Financial Group reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Kb Financial Group Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WF	79 Outperform	$11.21B	5.69	9.43%	3.02%	-0.86%	13.17%
KB	78 Outperform	$27.62B	7.44	10.66%	2.69%	-3.00%	32.85%
FITB	77 Outperform	$25.89B	12.32	11.71%	3.82%	5.75%	0.68%
SHG	72 Outperform	$22.12B	6.80	8.79%	3.00%	-3.37%	4.50%
BBD	70 Outperform	$30.36B	9.81	10.61%	1.26%	-9.78%	27.43%
BSBR	70 Outperform	$20.60B	16.92	10.89%	4.99%	-3.94%	31.52%
Sector *	64 Neutral	$12.73B	9.77	7.84%	78.17%	12.05%	-7.99%

* Financial Sector Average

Performance Comparison

Kb Financial Group

78.91

23.23

41.72%

BBD

Banco Bradesco SA

3.09

0.92

42.40%

BSBR

Banco Santander Brasil

5.45

0.63

13.07%

FITB

Fifth Third Bancorp

38.78

4.02

11.57%

SHG

Shinhan Financial Group Co

43.05

9.12

26.88%

Woori Finance Holdings Co

45.36

14.31

46.09%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.