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Kb Financial Group (KB)
NYSE:KB
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Kb Financial Group
(NYSE:KB)
Rating:78Outperform
Price Target:
$91.00
â–²(10.42%Upside)
Kb Financial Group (KB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$30.72B
Dividend Yield2.48%
Average Volume (3M)213.00K
Price to Earnings (P/E)8.1
Beta (1Y)0.85
Revenue Growth-3.00%
EPS Growth32.85%
CountryUS
Employees141
SectorFinancial
Sector Strength73
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.06
Shares Outstanding381,462,100
10 Day Avg. Volume181,835
30 Day Avg. Volume212,995
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)0.76
Price to Sales (P/S)0.00
P/FCF Ratio-2.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$91.00Price Target Upside10.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Kb Financial Group Business Overview & Revenue Model
Company DescriptionKB Financial Group Inc. is a South Korean financial holding company headquartered in Seoul. It operates through a diverse array of sectors, including banking, asset management, insurance, and securities. The company provides a wide range of financial services, such as retail and corporate banking, investment banking, asset management, life insurance, and other related financial services. KB Financial Group is one of the leading financial institutions in South Korea, known for its comprehensive financial solutions and extensive customer base.
How the Company Makes MoneyKB Financial Group generates revenue through a variety of financial services. The primary revenue stream comes from its banking segment, which includes interest income from loans and deposits, and fees from financial products and services. The securities segment contributes to revenue through trading and brokerage fees. The asset management unit earns income from management fees based on assets under management. Additionally, the insurance division generates premiums from life and non-life insurance products. The company's revenue is also supported by strategic partnerships and collaborations within the financial sector, enhancing its product offerings and market reach.
Kb Financial Group Earnings Call Summary
Earnings Call Date:Apr 24, 2025
(Q1-2025)
| % Change Since: 39.23%|
Next Earnings Date:Jul 24, 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 demonstrates solid revenue growth and profitability despite some operational efficiency variances. The balance sheet is stable, though there is a slight increase in leverage. Cash flow management presents challenges, particularly with recent negative operating cash flow, which warrants monitoring.Income Statement
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.75
Positive
Balance Sheet
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.70
Positive
Cash Flow
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.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.01T | 13.08T | 16.68T | 17.04T | 15.05T |
| Gross Profit | 15.01T | 13.03T | 12.09T | 13.30T | 15.05T |
| EBITDA | 7.90T | 6.99T | 6.27T | 7.09T | 0.00 |
| Net Income | 5.08T | 4.63T | 4.15T | 4.41T | 3.47T |
Balance Sheet | |||||
| Total Assets | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 10.00T> |
| Cash, Cash Equivalents and Short-Term Investments | 10.00T> | 10.00T> | 90.36T | 92.43T | 88.54T |
| Total Debt | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 90.35T |
| Total Liabilities | 10.00T> | 10.00T> | 10.00T> | 10.00T> | 92.39T |
| Stockholders Equity | 57.89T | 56.93T | 48.36T | 47.46T | 42.50T |
Cash Flow | |||||
| Free Cash Flow | -20.14T | 3.43T | 5.15T | -7.18T | -12.15T |
| Operating Cash Flow | -19.80T | 4.11T | 5.69T | -6.70T | -11.54T |
| Investing Cash Flow | -3.83T | -3.52T | -20.29T | -3.86T | -10.99T |
| Financing Cash Flow | 21.84T | -1.24T | 31.75T | 43.32T | 25.26T |
Kb Financial Group Technical Analysis
Neutral
82.41
Price Trends
76.59
Positive
66.13
Positive
64.56
Positive
Market Momentum
2.46
Positive
52.69
Neutral
35.72
Neutral
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 82.41 is below the 20-day moving average (MA) of 82.81, above the 50-day MA of 76.59, and above the 200-day MA of 64.56, indicating a neutral trend. The MACD of 2.46 indicates Positive momentum. The RSI at 52.69 is Neutral, neither overbought nor oversold. The STOCH value of 35.72 is Neutral, 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $29.20B | 13.90 | 11.71% | 3.46% | 5.75% | 0.68% | |
78 Outperform | $30.72B | 8.15 | 10.66% | 2.48% | -3.00% | 32.85% | |
74 Outperform | $14.28B | 7.22 | 9.43% | 2.38% | -0.86% | 13.17% | |
71 Outperform | $25.60B | 7.95 | 8.79% | 2.57% | -3.37% | 4.50% | |
70 Outperform | $28.58B | 9.24 | 10.61% | 0.92% | -9.78% | 27.43% | |
70 Outperform | $18.34B | 15.27 | 10.89% | 5.46% | -3.94% | 31.52% | |
67 Neutral | $16.64B | 11.61 | 9.79% | 3.78% | 11.89% | -8.13% |
* Financial Sector Average
Performance Comparison
KB
Kb Financial Group
82.41
22.85
38.36%
BBD
Banco Bradesco SA
2.88
0.77
36.49%
BSBR
Banco Santander Brasil
5.00
0.06
1.21%
FITB
Fifth Third Bancorp
43.05
4.24
10.93%
SHG
Shinhan Financial Group Co
49.68
11.73
30.91%
WF
Woori Finance Holdings Co
53.79
21.61
67.15%
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.