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Kb Financial Group
(NYSE:KB)
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Rating:61Neutral
Price Target:
$122.00
â–²(1.04% Upside)
Action:Downgraded
Date:10/29/26
The score is primarily constrained by financial-quality risks—especially deeply negative TTM operating/free cash flow and elevated leverage—despite solid profitability and improving ROE. Technical signals also detract due to bearish momentum and the stock trading below key moving averages. Offsetting these, valuation is supportive (low P/E with a moderate yield) and earnings-call commentary was net-positive with stable credit-cost guidance, strong capital ratios, and ongoing shareholder returns.
Positive Factors
Diversified Financial Platform
KB’s broad mix of banking and non-banking businesses diversifies revenue sources across retail, corporate, and wealth customers. This integrated platform can support cross-selling, balance earnings volatility between businesses, and preserve strategic flexibility across Korea and selected overseas markets.
Negative Factors
Negative Cash Generation
Deeply negative trailing operating and free cash flow weakens the conversion of reported earnings into usable financial resources. If sustained, this volatility could constrain internally funded growth, reduce flexibility during stress, and make capital allocation more dependent on balance-sheet capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Financial Platform
KB’s broad mix of banking and non-banking businesses diversifies revenue sources across retail, corporate, and wealth customers. This integrated platform can support cross-selling, balance earnings volatility between businesses, and preserve strategic flexibility across Korea and selected overseas markets.
Read all positive factors
Kb Financial Group (KB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$38.96B
Dividend Yield2.87%
Average Volume (3M)172.91K
Price to Earnings (P/E)8.9
Beta (1Y)0.81
Revenue Growth3.72%
EPS Growth10.87%
CountryUS
Employees141
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)17263.72
Shares Outstanding354,687,740
10 Day Avg. Volume214,028
30 Day Avg. Volume172,911
Financial Highlights & Ratios
PEG Ratio0.40
Price to Book (P/B)0.76
Price to Sales (P/S)0.93
P/FCF Ratio12.78
Enterprise Value/Market Cap3.27
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.37
Revenue Forecast (FY)$14.11B
Kb Financial Group Business Overview & Revenue Model
Company Description
KB Financial Group Inc. is a prominent financial conglomerate offering a diverse array of banking and associated financial services to both individual consumers and corporate entities, both domestically in South Korea and across international mark...
Kb Financial Group Earnings Call Summary
Earnings Call Date:Oct 29, 2026
(Q3-2026)
| Next Earnings Date:Feb 09, 2027
Earnings Call Sentiment Positive
The call was broadly positive, with strong cumulative net profit and ROE growth, solid loan expansion, higher cumulative fee income, improving cost efficiency, stable credit costs, robust capital ratios, and increased shareholder returns. The main challenges were Q3 NIM and fee-income declines, greater quarterly non-interest income volatility, higher provisions, funding pressure, and potential insurance-sector capital impacts. Overall, the positive operating and shareholder-return trends significantly outweighed the stated challenges.Positive Updates
Strong Cumulative Net Profit and ROE Growth
Q3 net profit was KRW 1,907.5 billion, while cumulative Q3 net profit reached KRW 5,792.1 billion, up 13.1% YoY. Cumulative group ROE was 13.89%, improving by 1.1 percentage points YoY.
Negative Updates
Q3 NIM Contraction
Group NIM declined 2 basis points QoQ to 1.92%, while bank NIM declined 2 basis points QoQ to 1.72%. The decline reflected increased funding costs from uneven funding-market supply and demand, irregular fund flows, corporate-loan spread narrowing, and weaker core deposits.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Cumulative Net Profit and ROE Growth
Q3 net profit was KRW 1,907.5 billion, while cumulative Q3 net profit reached KRW 5,792.1 billion, up 13.1% YoY. Cumulative group ROE was 13.89%, improving by 1.1 percentage points YoY.
Read all positive updates
Company Guidance
Management expects the group's credit cost for the year to be managed within the mid-40 basis point range; from Q4, the base rates hikes from July and August will be gradually reflected in loan-asset repricing, and they expect the improvement in asset yields to further expand. Quarterly fee income’s basic fundamentals are thought to be around KRW 1 trillion, while a slowdown in fee income is inevitable. The year-end dividend will include KRW 180 billion of cash dividend, mid to long-term ROE is targeted at near 13%, and non-life insurance expects KRW 90 billion-KRW 100 billion of positive effect from the policy change regarding car accidents, with about a KRW 2 billion positive effect from manual-therapy measures. KB Insurance’s CSM is expected to decline by around KRW 500 billion and the K-ICS ratio by 5%, although the overall increase size is expected to be declined; KB Life’s CSM balance is expected to be about 8%, so difference, at about KRW 3.5 trillion level.Kb Financial Group Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
64
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.75T | 50.69T | 37.77T | 36.41T | 25.64T | 20.97T |
| Gross Profit | 27.57T | 24.86T | 18.06T | 16.30T | 14.56T | 15.81T |
| EBITDA | 9.93T | 9.45T | 7.90T | 6.99T | 6.27T | 7.09T |
| Net Income | 6.31T | 5.85T | 5.08T | 4.59T | 4.11T | 4.41T |
Balance Sheet | ||||||
| Total Assets | 10.00T> | 0.00 | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 0.00 | 10.00T> | 10.00T> | 10.00T> | 92.05T |
| Total Debt | 10.00T> | 0.00 | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Total Liabilities | 10.00T> | -61.37T | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Stockholders Equity | 60.89T | 61.37T | 57.89T | 56.69T | 52.52T | 48.53T |
Cash Flow | ||||||
| Free Cash Flow | -14.76T | 3.67T | 3.39T | 3.43T | 4.26T | -2.50T |
| Operating Cash Flow | -14.38T | 4.23T | 4.02T | 4.11T | 4.76T | -2.03T |
| Investing Cash Flow | -10.81T | -5.54T | -3.83T | -3.52T | -19.64T | -3.86T |
| Financing Cash Flow | 29.02T | 5.80T | -1.98T | -1.24T | 15.18T | 10.82T |
Kb Financial Group Technical Analysis
Neutral
120.75
Price Trends
123.20
Negative
118.47
Negative
111.24
Positive
Market Momentum
-2.72
Positive
38.99
Neutral
19.85
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 120.75 is above the 20-day moving average (MA) of 119.69, below the 50-day MA of 123.20, and above the 200-day MA of 111.24, indicating a neutral trend. The MACD of -2.72 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 19.85 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $31.80B | 11.46 | 10.65% | 2.72% | 0.14% | 18.15% | |
70 Outperform | $48.52B | 18.06 | 8.30% | 3.03% | 15.15% | -12.33% | |
68 Neutral | $59.15B | 12.32 | 8.14% | 4.23% | -5.73% | 4.01% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $16.52B | 7.27 | 8.82% | 4.32% | 32.89% | -9.62% | |
63 Neutral | $30.14B | 7.94 | 9.51% | 3.05% | 27.85% | 15.08% | |
61 Neutral | $38.96B | 8.92 | 10.68% | 2.87% | 3.72% | 10.87% |
* Financial Sector Average
KB
Kb Financial Group
115.38
34.31
42.32%
TFC
Truist Financial
48.42
5.90
13.88%
FITB
Fifth Third Bancorp
53.47
12.87
31.71%
MTB
M&T Bank
220.20
42.49
23.91%
SHG
Shinhan Financial Group Co
65.62
14.20
27.62%
WF
Woori Finance Holdings Co
66.50
12.77
23.77%
Kb Financial Group Corporate Events
KB Financial Group Posts Strong Year-on-Year Profit Growth in Q3 2026 Preliminary Results
Oct 29, 2026
On October 29, 2026, KB Financial Group reported preliminary consolidated results for the third quarter of 2026, showing operating revenue of KRW 24.5 trillion, down 22.9% quarter-on-quarter but up 63.6% year-on-year, while net operating profit ed...
KB Financial Group Sets November 12 Record Date for Q3 2026 Interim Dividend
Oct 29, 2026
KB Financial Group Inc. has designated November 12, 2026, as the record date for interim cash dividends for the third quarter of 2026, meaning only shareholders on the register that day will be entitled to receive the payout. The announcement, fil...
KB Financial Group Announces KRW 1,167 Quarterly Dividend per Share
Oct 29, 2026
On October 29, 2026, KB Financial Group’s board approved a quarterly cash dividend of KRW 1,167 per common share, for a total planned payout of KRW 404.9 billion based on 346,973,821 outstanding shares. The move underscores the group’s...
KB Financial Group Calls November EGM to Appoint Veteran Executive Director
Oct 28, 2026
On October 28, 2026, KB Financial Group announced it had convened an extraordinary general meeting of shareholders scheduled for November 20, 2026 to vote on the appointment of a new executive director. The sole agenda item is the proposed electio...
KB Financial Group Sets October 29 Date for Q3 2026 Earnings Conference
Oct 15, 2026
KB Financial Group Inc. has scheduled its 2026 third-quarter earnings conference for Thursday, October 29, 2026, at 16:00 Korea time. The event will be delivered via live webcast and conference call, with materials available in both Korean and Eng...
KB Financial Group Calls November EGM to Appoint New Executive Director
Oct 2, 2026
KB Financial Group has called an extraordinary general meeting of shareholders for November 20, 2026, in Seoul to vote on the appointment of a new executive director. Shareholders of record as of October 19, 2026, will be eligible to vote, with th...
KB Financial Group Notes Slight Reduction in National Pension Service Stake
Aug 21, 2026
On August 21, 2026, KB Financial Group disclosed a modest reduction in the stake held by its largest shareholder, the Korean National Pension Service. The pension fund’s holding fell from 32,734,500 common shares, equal to 9.23% of 354,687,7...
KB Financial Group Reports Reviewed First-Half 2026 Results
Aug 14, 2026
On August 14, 2026, KB Financial Group filed its first-half 2026 business report with Korean regulators, providing an English summary prepared under K-IFRS and updated interim financials as of June 30. The package covers operations, funding, gover...
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.