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Kb Financial Group (KB)
NYSE:KB
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Kb Financial Group (KB) AI Stock Analysis

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KB

Kb Financial Group

(NYSE:KB)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
$87.00
▲(6.85% Upside)
KB Financial Group's overall stock score reflects strong financial performance and attractive valuation, tempered by technical indicators showing a neutral trend. The earnings call provided a positive outlook with profit growth and improved capital adequacy, but challenges remain with flat net interest income and high leverage.

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

Kb Financial Group Business Overview & Revenue Model

Company DescriptionKB Financial Group Inc. provides a range of banking and related financial services to consumers and corporations in South Korea and internationally. The company operates through Corporate Banking, Retail Banking, Other Banking Services, Securities Business, Non-life Insurance Business, Credit Card Business, and Life Insurance Business segments. It offers loans, deposit products, and other related financial products and services to large, small, and medium-sized enterprises, as well as small and home office, and individuals and households; investment banking, and brokerage and supporting services; life insurance products; non-life insurance products; and credit sale, cash service, card loan, and other supporting services. The company also engages in securities and derivatives trading, funding, and other supporting activities. In addition, it offers foreign exchange transaction; financial investment; credit card and installment financing; financial leasing; real estate trust management; capital investment; collection of receivables or credit investigation; software advisory, development, and supply; investment advisory; claim; management; savings banking; information and communication; and general advisory services. The company was incorporated in 2008 and is headquartered in Seoul, South Korea.
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:Oct 30, 2025
(Q3-2025)
|
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with notable achievements in profit growth, ROE improvement, dividend increase, and capital adequacy. However, concerns such as flat net interest income, declining noninterest income, and potential administrative fines were highlighted. The sentiment reflects a cautious optimism as the company manages to maintain strong results amidst challenges.
Q3-2025 Updates
Positive Updates
Strong Net Profit Growth
Group's net profit for the quarter reported KRW 1.686 trillion, with a 16.6% increase year-on-year, reaching KRW 5,121.7 billion.
Improved Return on Equity
Cumulative group ROE in Q3 was 12.78%, showing significant improvement over the previous year.
Increased Dividend
Board of Directors approved KRW 931 DPS, with total cash dividend amounting to KRW 335.7 billion, marking an increase of KRW 135 year-over-year.
Diversified Earnings Portfolio
Nonbank business accounts for 37% of cumulative Q3 net profit, highlighting a diversified earnings structure.
Stable NIM and Deposit Growth
Q3 bank NIM stood at 1.74%, and group NIM posted 1.96%, supported by a KRW 7.9 trillion growth in core deposits.
Cost Efficiency
Q3 cumulative general G&A posted a 2.8% increase year-over-year, supported by continuous cost efficiency efforts.
Improved Capital Adequacy
Estimated group BIS ratio posted 16.28% and CET1 ratio recorded 13.83%, securing one of the highest levels of capital adequacy in the industry.
Negative Updates
Flat Net Interest Income
Group's third quarter cumulative net interest income was KRW 9,704.9 billion, flat year-over-year.
Decrease in Noninterest Income
Q3 cumulative noninterest income posted KRW 3,739 billion, a 1.1% decrease year-over-year.
Provision for Credit Losses
Q3 provision for credit losses posted KRW 364.5 billion, a 44.4% decrease quarter-on-quarter.
Pending Administrative Fines
Potential fines and administrative penalties were discussed, but details on size and timing remain uncertain.
Company Guidance
In the third quarter of 2025, KB Financial Group reported a net profit of KRW 1.686 trillion, marking a 16.6% year-on-year increase to KRW 5,121.7 billion cumulatively. The group maintained a stable NIM with a Q3 bank NIM of 1.74% and a group NIM of 1.96%, supported by strong core deposit growth. KBFG's nonbank business contributed 37% to the cumulative net profit, with significant fee income growth from subsidiaries like KB Securities and KB Asset Management. The group's cumulative net interest income was KRW 9,704.9 billion, and noninterest income saw a 1.1% year-on-year decrease. The group reported a Q3 cumulative general G&A increase of 2.8% year-on-year, maintaining a CIR of 37.2%. Provision for credit losses decreased by 44.4% quarter-on-quarter to KRW 364.5 billion. The group's capital adequacy was robust, with a BIS ratio of 16.28% and CET1 ratio of 13.83%. A Q3 cash dividend of KRW 931 per share was approved, totaling KRW 335.7 billion.

Kb Financial Group Financial Statement Overview

Summary
KB Financial Group shows strong revenue growth and operational efficiency, with a high gross profit margin. However, high leverage and negative cash flows present financial risks, necessitating improved cash flow management and debt reduction.
Income Statement
75
Positive
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.
Balance Sheet
65
Positive
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.
Cash Flow
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue25.69T37.77T13.08T16.68T17.04T15.05T
Gross Profit17.70T15.01T13.03T12.09T13.30T15.05T
EBITDA8.95T7.90T6.99T6.27T7.09T0.00
Net Income5.73T5.08T4.63T4.15T4.41T3.47T
Balance Sheet
Total Assets10.00T>10.00T>10.00T>10.00T>10.00T>10.00T>
Cash, Cash Equivalents and Short-Term Investments10.00T>10.00T>10.00T>90.36T92.43T88.54T
Total Debt10.00T>10.00T>10.00T>10.00T>10.00T>90.35T
Total Liabilities10.00T>10.00T>10.00T>10.00T>10.00T>92.39T
Stockholders Equity59.07T57.89T56.69T52.52T48.53T42.54T
Cash Flow
Free Cash Flow-1.02T3.39T3.43T4.26T-2.50T-9.02T
Operating Cash Flow-376.45B4.02T4.11T4.76T-2.03T-8.41T
Investing Cash Flow2.36T-3.83T-3.52T-19.64T-3.86T-10.99T
Financing Cash Flow787.42B-1.98T-1.24T15.18T10.82T25.26T

Kb Financial Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price81.42
Price Trends
50DMA
81.24
Positive
100DMA
81.59
Negative
200DMA
71.02
Positive
Market Momentum
MACD
-0.10
Negative
RSI
50.18
Neutral
STOCH
60.67
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 81.42 is above the 20-day moving average (MA) of 81.18, above the 50-day MA of 81.24, and above the 200-day MA of 71.02, indicating a bullish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 50.18 is Neutral, neither overbought nor oversold. The STOCH value of 60.67 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$27.87B11.189.60%3.06%-0.81%20.34%
$27.65B12.6411.52%3.62%-1.74%11.62%
$33.36B9.9211.76%1.74%-4.58%39.03%
$24.82B7.722.23%-5.54%5.77%
$18.00B11.429.92%3.81%9.73%1.22%
$29.74B7.7610.14%2.31%-3.11%28.74%
$13.09B6.978.90%3.39%-3.55%1.59%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KB
Kb Financial Group
81.42
16.18
24.80%
BBD
Banco Bradesco SA
3.52
1.21
52.38%
FITB
Fifth Third Bancorp
41.95
-0.18
-0.43%
MTB
M&T Bank
181.34
-7.94
-4.19%
SHG
Shinhan Financial Group Co
52.65
14.83
39.21%
WF
Woori Finance Holdings Co
53.91
20.25
60.16%

Kb Financial Group Corporate Events

Kookmin Bank Declares Interim Dividend for KB Financial Group
Oct 30, 2025

On October 29, 2025, the board of directors of Kookmin Bank, a subsidiary of KB Financial Group Inc., declared an interim cash dividend of KRW 2,480 per common share, amounting to a total of KRW 1,002,860,207,680. This dividend will be paid to KB Financial Group Inc., which holds all common shares of Kookmin Bank, with payment scheduled for November 14, 2025. This decision reflects the bank’s adherence to its Articles of Incorporation and demonstrates its commitment to returning value to its parent company.

KB Financial Group Reports Q3 2025 Financial Results Amid Revenue Decline
Oct 30, 2025

On October 30, 2025, KB Financial Group announced its preliminary operating results for the third quarter of 2025, revealing a notable decline in operating revenue by 38.13% compared to the previous quarter. Despite this, the company experienced a 9.47% increase in net operating profit from the second quarter of 2025, indicating resilience in its core operations. The results, still subject to auditor review, highlight the company’s ability to maintain profitability amidst revenue challenges, which may reassure stakeholders of its strategic positioning in the competitive financial sector.

KB Financial Group Sets Record Date for Q3 2025 Dividends
Oct 30, 2025

KB Financial Group Inc. has announced November 14, 2025, as the record date for its interim cash dividends for the third quarter of 2025. This decision, in line with Article 60 of its Articles of Incorporation, underscores the company’s commitment to returning value to its shareholders, with dividends determined based on the specified record date without closing the shareholders’ registry.

KB Financial Group Declares Quarterly Dividend Amid Treasury Share Adjustments
Oct 30, 2025

On October 30, 2025, KB Financial Group’s board of directors declared a quarterly cash dividend of KRW 930 per common share, totaling approximately KRW 335.7 billion, assuming 361,001,975 shares are outstanding. The record date for the dividend is set for November 14, 2025, with payment expected within a month, subject to adjustments based on the actual number of shares outstanding due to treasury share acquisitions.

KB Financial Group Updates on Share Buyback Progress
Oct 28, 2025

On October 28, 2025, KB Financial Group announced interim results for its share buyback program, which began on July 24, 2025. The program involves acquiring treasury shares through a trust agreement with Hana Securities Co., Ltd. As of October 24, 2025, KB Financial Group had acquired 2,870,000 common shares, representing 0.75% of total issued shares, bringing the total treasury shares held to 5.29% of the company’s issued shares. This ongoing acquisition is part of the company’s strategy to optimize its capital structure and potentially enhance shareholder value.

KB Financial Group Reports Change in Largest Shareholder’s Stake
Oct 21, 2025

On October 21, 2025, KB Financial Group Inc. announced a decrease in the number of shares owned by its largest shareholder, the Korean National Pension Service. The shares decreased from 31,844,527 to 31,601,545, representing a slight drop in ownership from 8.35% to 8.28% of the total shares. This change reflects a minor adjustment in the shareholder composition of KB Financial Group, which may have implications for the company’s governance and stakeholder dynamics.

KB Financial Group to Host Q3 2025 Earnings Conference
Oct 15, 2025

KB Financial Group Inc. announced that it will hold its 2025 Third Quarter Earnings Conference on October 30, 2025. The event will be available via live webcast and conference call in both Korean and English, providing stakeholders with insights into the company’s financial performance and strategic direction. This conference is a significant event for investors and analysts as it offers a detailed overview of the company’s quarterly earnings and allows for direct engagement through a Q&A session.

KB Financial Group Reports Change in Major Shareholder’s Stake
Aug 18, 2025

On August 18, 2025, KB Financial Group Inc. announced a reduction in the number of shares owned by its largest shareholder, the Korean National Pension Service. The shareholding decreased from 33,064,648 shares, representing 8.40% of the company’s total shares as of May 12, 2025, to 31,844,527 shares, representing 8.35% as of August 11, 2025. This change in shareholding may impact the company’s governance dynamics and influence future strategic decisions.

KB Financial Group Releases 2025 First Half Business Report
Aug 14, 2025

On August 14, 2025, KB Financial Group filed its business report for the first half of 2025 with the Financial Services Commission of Korea and the Korea Exchange. The report, prepared in accordance with Korean IFRS, provides insights into the company’s financial position and performance, reflecting its strategic operations and market positioning. The filing highlights the company’s consolidated financial statements and operational results, which are crucial for stakeholders to assess the company’s financial health and future prospects.

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.Date of analysis: Oct 30, 2025