KB Financial (KB)

Scott Seo CFO
Jin-Sang Kim Hyundai Securities
Jaewoo Kim Samsung Securities
Do Ha Kim Hanwha Investment
Lee Byung Gun DB Securities
Yafei Tian Citigroup Inc.
Call transcript
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0:02 Greetings. I'm Peter Kweon, the head of IR at KBFG.

We will now begin the 2021 Yearly Business Results Presentation. I would like to express my deepest gratitude to everyone for participating today.

We have here with us our group CFO and Senior Managing Director, Scott Seo as well as other members from our group management.

the Managing financial then Directors Q&A hear CFO from have first session. Senior and Scott will XXXX highlights major our a We Seo and to Senior like Director invite would XXXX our I and results. to CFO deliver our earnings Managing

Scott Seo

Scott I KBFG Group. joining CFO at and full-year XXXX X:XX Thank am KB all you Good Seo afternoon presentation. for QX Financial earnings release

key on highlights. allow run me presenting to performance the business through XXXX Before first

profit, market, an gained driving merely rate income a posted loan growth, earnings in XX% backdrop used commissions and stronger as of well income, booming growth to to and interest growth Cambodia recovery, clear ROE was sign including core improvement. interest First, of but growth COVID the X net solid XXXX by EPS a notched better however non-Bank on hikes meeting up a testament to economy M&A In achieving XX% market as trillion is risen points X.X net rates up to in income, IB, year driven improvement earnings from Prudential the showing X:XX recovery. the controlling This pandemic, be not WM the outcome competitiveness has share level insurance Won, and capacity. back of year a percentage X.X% which earnings up was on basis and which last interest Also of stock on high KRWXX,XXX, economic was profit consensus. global X.X to Contribution is posted year-over-year, acquisitions by market XX% Life impact Diluted up Driven and XX.X%, XXXX. middle X:XX export of Korean a record Indonesia. XX%.

up XX is experienced conservative bring the X:XX Third, stands payout around market and XXXX support. as note the forbearance net XX levels market the the was percentage real ratio the XXXX as and credit this three to today's point, of group's XX% lower market took pre-COVID outcome concerns achieved were to for liquidity level. softening on digit double average X:XX All rate of since the X.X ratio decline COVID-XX back of income even fixed point NPL interest costs pre-COVID which voluntarily. estate an points years. equities, and was and provisioning is in in under levels FYXXXX preceding XX% coverage basis the Group's times at well regarding pre-COVID midst debt Also after quality on asset the provisioning government and led the hikes, of to was to from household DOD versus growth XXX%, ratio the back during the XXXX we ROE profit pre-emptive pandemic. Second were set payout able that temporary asset of

is equivalent that of the higher was full XX% August, This X.X% In supported XXXX, paid part DPS [Indiscernible] the and profit. got value share profit up solution terms midst including policy was This dividend revenue by X:XX to also by to in decision shareholder difficult out COVID-XX commitment shares. in brought year-over-year. year amounts worth DOD our of of payout interim for normalization was a XX billion cancel on of KRWXXX enhance treasury per pandemic. of There of to DPS net net of XXX to

me Lastly, return options on what advanced global up We it a and for our wide digitalization provide raise shareholder must X:XX policy we let more to standard. ranging efforts. update an explore will continue to the do to

around our net business billion, capacity. KRWX.X profit growth increase securities, KRWX.X contribution life capabilities, Group's profit billion all improving decline expanded hence improvements. of billion rise was But loan income, income. M&A up large one earnings KRWXXX the group impact I XX.X% goose well our and There results which platform through as on Meanwhile, a connect platform and launched to X:XX was XXXX a NIM Liiv Group's profit and between commissions to of vein, income my In was rise commissions of and competitiveness core group's we X:XX strategies. year super billion continuous details of bank was bank's September affiliate interest as the the content points sizable card detail. interest launched improvement better of consumption a around seen well X:XX dive fees through X,XXX.X to data trust solid or will recovery up net loan seasonality. ERP solid income provisioning as by core will information platform, lead growth Non-bank strong company, which the and be as triggering Cambodians is basis same credit fee bank I M&A. the sizeable is a net and driving in basis two as further will financial credit knowhow of of was in profits fiercer growth QX subsidiaries, trust to fully this and of KB income improvement. KRW the comprehensive attesting pre-emptive XX,XXX.X is card incumbents. Last were up interest for banks in XX.X%. financial interest This business XX% and hub expense insurance analytics financial group. inorganic app Nonetheless, through financial drove number X:XX net was profit also to KBFG writing competitiveness fees income the driving billion, XX.X% and or tech XXX.X we robust which the This Over initiate, from able for run a service earnings Q-on-Q, Gen market billion, up to ensure year-over-year KRWX,XXX.X, income, XX.X% Q-on-Q. net prospect IB the to net equities interest and X.X% we into underpinned KRWXXX X.X% KRW KRWX,XXX.X result competitiveness income critical and platform and of Q-on-Q each XX by as expert the uptrend, ourselves full we bold will securities bottom course versus future. more and year-over-year Asset business. to KBFG’s net XXXX year, via meaningful the back As competition X:XX level items Page product due going drove the bank, a year-over-year. performance in big continuing QX driven seen store the to versus have are we up redefine a recurring now platform Next NIM of which one customers, through of a year, to can while improvement Next, growth KRW non-financial on potential and data XXXX. bank a quarter, were Z's customers right XXXX versus around utilize This now new item. the as three graph financial on number valuable capacity of the recovery, and XXXX trillion, and banking, of increases subsidiaries, financial to undertook in sustaining trillion Management group. which efforts from growth financial million including in XXXX QX performance one due the fee one-off a enhanced net improve income income sales

mainly in came generating On brokerage KRWX we But capacity Commission's Q-on- marginal commissions notched the level, groups group business annual Q income, that seasonal improved KRWXXX.X, other of fee hand, QX endorses trillion from compared net and income up income on to back at XXXX, to squeeze securities mid the fees such income. declined and on fee of which around KRWX X:XX IB. level in trillion in a

leading other outcome which to was Next X:XX due improvement market was KRWX,XXX.X G&A or ERP profit, spooking billion other QX income, [Indiscernible] $X of and to Life, operating other Cambodia's year-over-year, which high promotion which from operating driving profit bank of Prudential increase. higher M&A from G&A. wave X.X% trading approximately Q-on-Q market Apart lower the and seasonal the KRWXXX.X of billion performance. XX securities earnings and on was KRWXXX.X and adding headcount seasonal by rate KRWXXX value QXXX expenses a other mark, for billion volatilities Life FX tangible cold equities reporting on insurance of factors and provision and the billion. But interest operating down efforts believe up XXX on such rate balance Prudential profit ratio, year-over-year. financial mainly G&A for billion making grew Group acquisition in securities is XX:XX related X:XX index, of rising Next KRW business Next improvement was Also all higher wide of rate, to PCL cost was up earnings KRW to added is like Group’s QX on X.X% acquisition accidents is and gradual result. significant exchange loss on management KB XX:XX a erosion prospects, efficiencies. squeezed we underwriting COVID G&A only KRWX,XXX.X, Indonesia impacted expense year-over-year. year, by losses. the insurance impact, impacted billion constraining factors and XXX terms was its there led with snowfall derivatives KRWXXX other back credit operating up of drove of and Group’s was expenses. and heavy insurance, QX which

of impact, loans COVID-XX size we additional given XX:XX up of around related conservative As reclassifying economic Large know, provisioning you KRWXXX for there KRW during the XXX believe last against to year, to off part has forecast usual fully set place which one to additional COVID-XX yet of times such to uncertainties. fourth was us certain Q-on-Q. scenarios used made due quarter, provisioning. top which and pre-emptive we additional To billion quarterly related the we've prepare provisions, COVID-XX pre-emptive KRWXXX.X XXXX QX three As uncertainties risk on provisioning led amounting rise management. buffer billion aside of ample to took

‘XX X, XXXX beginning sustaining on XX% KBFG’s Page year-to-date of and X.X% was sources, XX:XX score denominated consecutive and basis Next quarterly on For X.X% XX core credit conservative earnings fundamentals to growth since in provision trillion is provisioning level of probability steady by one was billion, model up cost the meaningfully notched loan KRWXXX the in X.X% one growth solid retail reported XX is X,XXX.X a driven first to decided XXXX XX:XX card revisions event and with Also versus basis banks. of there model, as in for Group's KRWX,XX.X above QX. the new additional basis of up there level billion diversified for was indicators. basis underpinned PCL two in level earnings following learned and actual of compliance profitability. end full the XX in and is point year. provisioning of with financial upgrade credit KRWXXX required a XX.XX% KRW reported default Banks Next by III the fair in of year-to-date. years. key [Indiscernible] PD XX:XX point credit is take growth in approach of we end. cost revenue of FYXX ROE trillion, orally gross on year points, the with loans was demand, line KRWXX the of credit applied recurring Basel was accordingly September business

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So to release concludes Group KB I you as earnings XXXX please will thank them for Financial listening. refer presentation because needed


internet. us give Q&A please very of joining moment us via Instructions] XX:XX those to contact the We screen. refer begin of now questions. wait we the will info a the the [Operator you for Please presentation for as last the on page

Please from Mr. Hyundai the ahead. will Securities. take We Motors question go Sang from Jin Kim

Jin-Sang Kim

Good questions. results. XX:XX two ask afternoon. you like I Thank to you for would good

whether XX%. the and shares, we as but you've so understand would time out understand and First I some of to I'd like your decision considering share think making is gratitude perspective capital ratio in well as forward go you not your this also that already from quarterly additional your be extend be payouts, cancellations to would mid-term going to my and would would share as is terms what significant year same cancellation some the at dividend your also forward this like your direction normalizing and payout relating cancelled year – size you treasury you the have will management ratio. to dividend for paid to like of that because dividend interim be I Are approach your payout

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color that. like different We'd So some some year? to And discrepancies some this these others businesses get better do on you across with visibly some not? perform subsidiaries see

Scott Seo

for question. very XX:XX much Thank you that

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As to buffer. however, those has to sufficient efforts, crisis, capped. a normalized to payout the part very the want been capital years, past for the due quickly KB had dividend two XX% of We COVID-XX level.

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We thinking many return that different so up could boost level. are of we shareholder total further options,

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Unidentified Company Representative

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A –Unidentified Company Representative

XX:XX Hello, securities. KB I am [Indiscernible] from

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Unidentified Company Representative

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Unidentified Company Representative

XX:XX Yes. Good I afternoon, am [Indiscernible].

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XX:XX Thank you for the very detailed answers.

Jaewoo we From the Samsung on Please sir. Securities, will We take Mr. Kim line. next have the question.

Jaewoo Kim

XX:XX have you I'm for I Thank Samsung from questions. Kim Securities. Jaewoo two question. your

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Unidentified Company Representative

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Unidentified Company Representative

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Lee Byung Gun

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Unidentified Company Representative

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Lee Byung Gun

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Unidentified Company Representative

would XX:XX answer the And to [Indiscernible]. from like I question

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Yafei Tian

questions. taking have XX:XX Hi, my thank questions. I quick for you two

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Unidentified Company Representative

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Yafei Tian

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Unidentified Company Representative

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Unidentified Analyst

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Unidentified Company Representative

answer. of a our [Indiscernible] more give XX:XX Financial KB a detailed big risk give head will picture I Group and will

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Unidentified Company Representative

mentioned an on a conservative. would to XX:XX [Indiscernible] will on be the We and assumptions, FLC for provisioning risk policy explain I for pre-emptive for wide and like group overall policy and they basis. basis

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Unidentified Company Representative

sufficient it believe CRO, the crisis, was XX:XX including is and is a XXXX. this by that IMF actually but instead that I answer not our he

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