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Kb Financial Group Inc. (KB)
:KB
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Kb Financial Group
(NYSE:KB)
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Rating:65Neutral
Price Target:
$85.00
â–²(2.62% Upside)
KB Financial Group's overall score is driven by strong valuation metrics, indicating potential undervaluation. However, financial performance is hindered by high leverage and negative cash flows. Technical indicators suggest a lack of strong momentum, which could limit short-term price appreciation.
Kb Financial Group (KB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.16B
Dividend Yield2.27%
Average Volume (3M)131.47K
Price to Earnings (P/E)7.8
Beta (1Y)0.93
Revenue Growth-3.11%
EPS Growth28.74%
CountryUS
Employees141
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.39
Shares Outstanding381,462,100
10 Day Avg. Volume140,182
30 Day Avg. Volume131,473
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 Cap4.62
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda0.02
Forecast
1Y Price Target
$95.42Price Target Upside15.20% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
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: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, high leverage and negative cash flows present financial risks, necessitating improved cash flow management and debt reduction.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
Positive
82.83
Price Trends
81.20
Positive
79.98
Positive
68.99
Positive
Market Momentum
0.41
Positive
52.43
Neutral
65.13
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 82.83 is below the 20-day moving average (MA) of 83.00, above the 50-day MA of 81.20, and above the 200-day MA of 68.99, indicating a neutral trend. The MACD of 0.41 indicates Positive momentum. The RSI at 52.43 is Neutral, neither overbought nor oversold. The STOCH value of 65.13 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $29.39B | 13.82 | 11.58% | 3.40% | 1.90% | 2.87% | |
76 Outperform | $30.41B | 12.60 | 9.47% | 2.85% | 0.69% | 14.79% | |
71 Outperform | $31.63B | 9.28 | 11.76% | 1.93% | -4.58% | 39.03% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $13.63B | 7.08 | 8.90% | 3.26% | -3.55% | 1.59% | |
65 Neutral | $30.16B | 7.82 | 10.14% | 2.27% | -3.11% | 28.74% | |
65 Neutral | $24.03B | 7.74 | 8.58% | 2.32% | -3.83% | 4.06% |
* Financial Sector Average
KB
Kb Financial Group
82.83
18.79
29.34%
BBD
Banco Bradesco SA
3.17
0.61
23.83%
FITB
Fifth Third Bancorp
44.41
3.75
9.22%
MTB
M&T Bank
194.56
21.66
12.53%
SHG
Shinhan Financial Group Co
50.64
9.21
22.23%
WF
Woori Finance Holdings Co
56.15
20.40
57.06%
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.