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Kb Financial Group (KB)
NYSE:KB
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Kb Financial Group
(NYSE:KB)
Rating:62Neutral
Price Target:
$85.00
â–²(8.71% Upside)
Kb Financial Group (KB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.24B
Dividend Yield2.24%
Average Volume (3M)237.68K
Price to Earnings (P/E)7.4
Beta (1Y)0.89
Revenue Growth-3.11%
EPS Growth28.74%
CountryUS
Employees141
SectorFinancial
Sector Strength72
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.42
Shares Outstanding381,462,100
10 Day Avg. Volume147,574
30 Day Avg. Volume237,679
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap4.93
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.02
Forecast
1Y Price Target
$85.00Price Target Upside8.71% Upside
Rating ConsensusHold
Number of Analyst Covering1
Kb Financial Group Business Overview & Revenue Model
Company DescriptionKb Financial Group (KB) is a leading South Korean financial services holding company that provides a wide range of financial products and services across various sectors, including banking, insurance, asset management, and investment banking. The company operates through its subsidiaries, primarily KB Kookmin Bank, which is the largest commercial bank in South Korea, and KB Insurance. KB Financial Group is committed to delivering innovative financial solutions to meet the diverse needs of its customers, both individual and corporate.
How the Company Makes MoneyKb Financial Group generates revenue through multiple key streams. Primarily, the company earns money from interest income generated by its banking operations, particularly through loans and mortgages offered by KB Kookmin Bank. Additionally, KB receives fee income from various services, including transaction fees, investment banking services, and wealth management offerings. Insurance premiums collected from KB Insurance represent another significant revenue source. The company also benefits from asset management fees associated with managing investment funds and portfolios. Strategic partnerships with financial institutions and companies further enhance its revenue through syndication fees and collaborative financial products. Overall, KB Financial Group's diversified revenue model allows it to maintain a stable income base while adapting to market changes.
Kb Financial Group Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The call highlighted strong capital ratios, record operating profit, and robust shareholder returns as key positive aspects. However, challenges in loan yields, slight declines in net fee income, and increased credit loss provisions present concerns. There is also significant uncertainty in market conditions.Q1-2025 Updates
Positive Updates
Strong Capital Ratio and Profitability
CET1 ratio posted 13.67%, a 14 bp increase Q-o-Q, maintaining the industry's highest level. Q1 net profit was KRW1.6973 trillion, with a group ROE of 13.04%.
Record Operating Profit
Total operating profit reached a record high of approximately KRW4.6 trillion, demonstrating strong earning power.
Shareholder Returns and Dividend Increases
KRW912 cash dividend per share and KRW300 billion share buyback and cancellation announced. This represents a KRW108 increase compared to the previous quarter.
Balanced Growth in Non-Interest Income
Non-interest income amounted to KRW1.292 trillion, improving on both Q-o-Q and Y-o-Y basis, driven by securities performance.
Cost Efficiency Improvements
G&A expenses were down 1.4% Y-o-Y, and the group CIR reached a record low of 35.3%.
Negative Updates
Challenges in Loan Yield and Interest Margin
Bank interest income, mostly from loans decreased due to falling market rates, though net interest income remained stable.
Slight Decline in Net Fee Income
Net fee income reached approximately KRW934 billion, down slightly Y-o-Y due to adjustments in card merchant fees and delays in real estate PF fees.
Increase in Credit Loss Provisions
Provision for credit loss amounted to KRW655.6 billion, with the group's credit cost standing at 54 bps, up slightly Q-o-Q.
Uncertainty in Market Conditions
Uncertainties due to domestic and international political and economic factors have expanded market volatility.
Company Guidance
During the call, guidance was provided on several key financial metrics for KB Financial Group's performance in the first quarter of 2025. The Common Equity Tier 1 (CET1) ratio was reported at 13.67%, a 14 basis point increase quarter-over-quarter, reflecting stable capital management. The group achieved a net profit of KRW1.6973 trillion, with a return on equity (ROE) of 13.04%. Total operating profit reached approximately KRW4.6 trillion, driven by balanced growth in interest and non-interest income. The bank's net interest margin (NIM) increased by 4 basis points to 1.76%, while the group's non-interest income amounted to KRW1.292 trillion. General and administrative expenses were maintained at KRW1.6056 trillion, resulting in a cost-to-income ratio (CIR) of 35.3%. Provisions for credit losses were KRW655.6 billion, with a credit cost rate of 54 basis points. The group aims to maintain an annual credit cost in the mid-40 basis points range and target a 4.5% annual growth rate for risk-weighted assets. The capital return policy included a KRW912 per share cash dividend and a KRW300 billion share buyback and cancellation, enhancing shareholder value amidst market volatility.Kb Financial Group Financial Statement Overview
Summary
KB Financial Group shows strong revenue growth and operational efficiency with a high gross profit margin. However, the company faces challenges with high leverage and negative cash flows, indicating potential liquidity issues and financial risks.Income Statement
The income statement shows strong revenue growth with a 28.48% increase in TTM, indicating robust business expansion. Gross profit margin is high at 104.16%, reflecting efficient cost management. However, the net profit margin is moderate at 18.15%, suggesting room for improvement in profitability. EBIT and EBITDA margins are healthy, indicating strong operational performance.75
Positive
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 2.42, indicating significant leverage which could pose financial risks. Return on equity is moderate at 10.13%, showing decent profitability relative to equity. The equity ratio is stable, suggesting a balanced asset structure.65
Positive
Cash Flow
Cash flow analysis highlights negative operating and free cash flows, indicating potential liquidity issues. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow covers net income, but the negative growth rate of free cash flow is concerning.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.69T | 37.77T | 13.08T | 16.68T | 17.04T | 15.05T |
| Gross Profit | 17.70T | 15.01T | 13.03T | 12.09T | 13.30T | 15.05T |
| EBITDA | 8.95T | 7.90T | 6.99T | 6.27T | 7.09T | 0.00 |
| Net Income | 5.73T | 5.08T | 4.63T | 4.15T | 4.41T | 3.47T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 10.00T> | 10.00T> | 10.00T> | 90.36T | 92.43T | 88.54T |
| Total Debt | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 90.35T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 92.39T |
| Stockholders Equity | 59.07T | 57.89T | 56.69T | 52.52T | 48.53T | 42.54T |
Cash Flow | ||||||
| Free Cash Flow | -1.02T | 3.39T | 3.43T | 4.26T | -2.50T | -9.02T |
| Operating Cash Flow | -376.45B | 4.02T | 4.11T | 4.76T | -2.03T | -8.41T |
| Investing Cash Flow | 2.36T | -3.83T | -3.52T | -19.64T | -3.86T | -10.99T |
| Financing Cash Flow | 787.42B | -1.98T | -1.24T | 15.18T | 10.82T | 25.26T |
Kb Financial Group Technical Analysis
Neutral
78.19
Price Trends
81.79
Negative
73.96
Positive
66.82
Positive
Market Momentum
-0.91
Positive
43.56
Neutral
15.27
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KB, the sentiment is Neutral. The current price of 78.19 is below the 20-day moving average (MA) of 80.20, below the 50-day MA of 81.79, and above the 200-day MA of 66.82, indicating a neutral trend. The MACD of -0.91 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 15.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $29.78B | 14.00 | 11.58% | 3.25% | 1.90% | 2.87% | |
75 Outperform | $31.28B | 12.82 | 9.47% | 2.67% | 0.69% | 14.79% | |
71 Outperform | $29.64B | 8.78 | 11.76% | 1.95% | -4.58% | 39.03% | |
68 Neutral | $17.84B | 12.03 | 10.32% | 3.73% | 9.70% | 0.76% | |
67 Neutral | $22.06B | 7.30 | 8.58% | 2.56% | -3.83% | 4.06% | |
66 Neutral | $13.02B | 6.78 | 8.90% | 4.02% | -3.55% | 1.59% | |
62 Neutral | $28.24B | 7.43 | 10.14% | 2.24% | -3.11% | 28.74% |
* Financial Sector Average
Performance Comparison
KB
Kb Financial Group
78.19
12.93
19.81%
BBD
Banco Bradesco SA
3.02
0.41
15.71%
FITB
Fifth Third Bancorp
45.51
4.81
11.82%
MTB
M&T Bank
202.02
36.81
22.28%
SHG
Shinhan Financial Group Co
47.39
4.16
9.62%
WF
Woori Finance Holdings Co
54.32
17.47
47.41%
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.