KB Financial (KB)

Peter Kweon Head, IR
Scott Y. H. Seo CFO and Senior Managing Director
Han Jung-Ho CFO
Byung-Joo Oh Managing Director
Jaewoo Kim Samsung Securities
Hyung Kim UBS
Joon Seok Morgan Stanley
Lee Byung Gun DB Investment
Jihyun Cho JP Morgan
Call transcript
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Peter Kweon

Good afternoon. My name is Peter Kweon, the Head of IR at KB Financial Group.

We will now begin the 2022 first quarter business results presentation. I’d like to express my deepest gratitude to everyone for participating today.

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

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

Scott Y. H. Seo

KBFG’s Good Group. Thank Financial CFO of QX earnings afternoon. ‘XX KB I am Scott Y. presentation. for H. joining Seo, you

through earnings Before highlights I results, key moving run XXXX. business KBFG first to QX for on for will

at First, year-over-year. attributable and Annualized QX trillion, one-off up to robust on X.X ROCE XX,XXX, retail ‘XX XX.X%, trading outperforming basis shows net QX profit a recurring in on year-over-year, of uncertainties was up Group’s X.XX commissions EPS KB to XX% following improving based Financial rate profit profit, market XX% on KRW lower XX%. net was was despite controlling while hike. factors up X% interest which the and by income capacity percentage earnings KRW market consensus points year, year-over-year came

level, and it to best is was BIS KBFG of ratio year the Second, in hikes, payout, XX say has par a X year-over-year. CETX year was strong loan to for balance, Tier adequacy QX despite to dividend demand markets And demand ratio. that points. end lending. and XXXX Despite won loan and compared there was on SMEs corporate CIB proud basis XXXX up XX result, quarterly been strong capital on of dynamics group’s declines as industry’s in to XX.X%, capital and market household rate thanks ratio by up X.X% last weak has end with

was approaches share ratio with by X% down February, billion reporting program. CIO value X.X and shows other which average X-year KRW basis nominal manner. dividend the but in write-backs, last the cost credit XXX period above after of helps QX the pandemic. enhance on we Also, to various program provisioning credit made a the to cost-to-income points, place dividend before system. resolution develop QX XX BOD ‘XX ratio BOD compared and KBFG XXX visibility control them group the around of NPL down considering the a the cost running built-up the return for following basis and maintain will of ‘XX was on-year and to payout in of QX conservative per KRW consider payout dividend percentage XX points, a will despite stance cost coverage basis, Third, on versus in ratio was as the coverage for NPL on past points corporate-wide cancellation been and rise implement is and enhance group’s headcount management for shareholder quarters. efficiencies, of investment commitment XX.X%, Quarterly and And had pandemic. of of advance quarterly back consecutive XX. shareholder share efforts the Fourth, X points effect in G&A was XXX%, up dividend XX of This, to today into digitalization quarterly consistent set thereof, percentage before uptrending

services. year. far, Integration by the to managed a process of merger which Prudential and of financial implementation integrate on stand-alone adequacy of Life IFRS differentiated business in insurance time so bring help two plan life XX we for comprehensive Life, and scale Insurance consulting Lastly, for and the was basis and subsidiaries improve KB the complete end with capital will the enable economy the

greater gain insurer, an life integrated market As we to expect competitiveness.

led up billion results, NII group year-over-year. X,XXX billion, to around KRW to which of group up or QX X.X% expense interest asset the net to earnings Page paid interest repricing, call, details policyholders starting financial XXX as was up ‘XX interest out provide income under for to driving historical hikes, quarter. up out through XX.X%, this interest better on of expense points, X reserve, practicality, for information insurance basis was X. Now and Please that net performance income reclassified retroactive KRW QX liability let’s note On restated NIM rate we on move treatment. the provisions

the ratio recorded bond due in dipped base and other QX’s year KRW trust commissions and up, and fee only despite in billion, income last from income weak commission derivative market, fee stock and QX profit bank’s slightly result Q-on-Q. XXX sluggish flat But and and of is the brokerage net And to subdued which Next the of resulted to market. fee operating stock year-over-year net This effect profit keeping and sluggish basis, product also is backdrop, a continuous yields on market base fees was billion. result Q-on-Q performances other financial DCM, business. QX from with growth. weak, in strong rise effort which put performance ECM a was gain for basis. with the XXX.X insurance commissions high sales were a On of improvement KRW competitiveness Group’s difficult income the operational not IPO business, loss a insurance and business, X.X% but in solid led positioning securities and on overall securities operating in to income was year-over-year dominant income. performance

your reference, in insurance mostly a net XXX.X reported by ratio recovery billion Insurance, it in KB around profit and of continuing improvement, For for net rise KRW QX, loss auto earned, trend. premium driven the

KRW X,XXX.X group QX expense. G&A on was billion. Next, G&A

asset QX digitalization down expanding control to large off level, plan year-over-year. for review we paid base down was G&A bank our Although cost Except for investments efforts, have year-over-year. to loan The around KRW write-backs. up KRW calculating on provision impact, was and at XXX.X revamp sustaining recovered there sum cost the continue one-off of loss future, billion, Recurring steady billion year-on-year excluding billion of back thoroughly PCL reported X.X upgrading from organization. at KRW on costs a And XX% with our level. such X.XX%, headcount slightly is costs, XX basis reversing PCL KRW provisioning. bad running and of through growth, loans, XX basis around And saving formula labor XXX a around provisions, we but including in inched the cost on for X% our the for credit billion. group the are investment

rate ROE the Page in regulations. the a the loans growth profitability agilely graph, respectively, at the and stood in to sustaining at borrowers Next in regulations, on policy. improvement KRW on and bank key focus market, trillion, the the XXX and X group’s and its quarter end loans financial This interest the X.X% we XX.XX%, to loans, YTD, first policy by growth and In is and end YTD. showing household KRW with increase X.XX% changes look in case ROA In a some a unsecured indicators, a in won loans group continued a loans, If protect to flexible mostly XXXX, is due recorded respect a profitability. rise to of presence corporate year, X.X% X.X% solid we which secure as of to to is of robust corporate But cases, household quality will approximately interest in loan respond apply lending loans, contraction loans, corporate X. rate in of the wons large SOHO grew in thanks YTD, March the SME, Household balanced growth which growth. XXXX, will and group trillion, the impacted continue decreased in by the loans. of

increased X in shows assets. growth the Next compared the advance to from In is an to the but only is last XXXX, further the profit as not X.XX%. basis point well X since year. asset interest momentum by reinforced in which the NIM, the even points interest the policy group’s the annualized strong key basis reflected monetary August as efforts quarter-on-quarter the NIM the resulted enhance also securities expansion the this quarterly Such NIM. direction market effect NIM rate, first strong year, persistent was to This group from effect, XXXX earned in yields rates is quarter as of repricing hikes our bank’s future three rise

efficiency, and ratio group Next the were earlier. BIS cost the ratio, page, credit cost group explained the

long Financial been expertise platforms. in our page, heightened address to competitiveness we this like that Recently, in ago. market, entering market on product digital services corporate the the have banking, quite banking various support corporate with advancing of competitiveness have the KB corporate platform platform Based we interest I’d lineups. Group’s banks Internet-only in been of and corporate loan built has features Next, and us the digital apart. banking there since business sets the platform banking And continuously internally, that corporate

Internet web-based Star Banking while well. for optimized are corporate that platforms banking of provides needs Banking of types services, services, full management The asset Corporate not different types two banking Corporate of KB mobile-based clients. as various have core but We also the only needs KB supports the

the only FX transactions, Star and We features international as recommendation management advisory and Bridge, Trade, solutions FX; and e-commerce business professional cash services. such not corporate deposits, transactions, platforms differentiated as solution banking KB these funds reinforcing platforms. also for and of policy solution; a Corporate competitiveness each an Banking trade KB supports The nonfinancial of KB integrated One are CMS, support loans and of such but an customized

meet industry-leading various the of offer corporate to As such, we needs differentiated clients. services our

corporate and to are activities go we management simple able develop intricately services linked, loans. beyond been client As corporate just banking that relationships have

and Banking at the expect the of this stands to has reference, last main in year, the the trend Recently, MAU industry. Banking is level XXX,XXX growth KB the end and XXX,XXX banking currently, of Corporate soon be corporate about KB. at we accelerated, Internet Star Corporate which of your is as platform MAU it For highest about KB recorded

of settlement competitive channel launched in finance. have loan product Since and The in chain industry KB we proactively features by in well for in the landscape, first The terms in the online business sole KB well, Seller a these received to seller Korea. KRW small limit up supply preemptively XXXX growing KB’s banking million as product XXX interest become flagship in launch, known market offered leadership Lastly, rates. very in the it its was and Loan, the and online online has maintains early line and clients that loan changes. loan online is with competitive addressed of proprietors products changes

we KB become with banking alternative on We will extended I platforms develop have banking Financial corporate results based launch Group’s them pages Moreover, the following Thank Star services quarter and attention. to on loan various in so market. corporate the subsidiaries our offer at corporate for platform to presentation. lead #X credit of corporate corporate refer to leisure. an Banking in on are external banking, you earnings platform differentiated first just product the information, lines finance. collaborate the KB establish results to banking will to XXXX information The This products Corporate covered, your earnings banking your detailed concludes please continue

Peter Kweon

Thank you.

now Kim begin Q&A. will will Instructions] We Jaewoo the the Mr. first Securities. from Samsung question, [Operator take We

Jaewoo Kim

quarter. for I you two good Thank have questions. earnings this

your return do shareholder policy. First with to has

pay You have to decided color certain out to do to decided dividend? a understand of year-end such more regarding your that are quarterly some I to what dividend would a dividend. amount competitors quarterly I and as then understand plans quarterly dividend. like your

announced the buyback total of cancel it’s and for return, also instance, has terms in share shares. going do aggregate to its Shinhan So shareholder

your I I’m understand Second if LTV regulations and look there has do with those plans? return rates that at has KB in also whether recently. cut aspect. interest additional the So to place. quite DSR, you’ve significantly other are Recently, you shareholder rate loan wondering

the the would at of if purpose understand So objective that not rollover demand. like your think of you current strategies have? and that I I big a look Also, trend, you there’s to

it there people deregulation for be if that? if a use for counter lower margin, loans interest actually what to to would wouldn’t are with that your loan be portfolio, switch impact on plans to consumers direction, And smaller So meaning to your move rate? your a possible there’s that

Peter Kweon

one to respond the moment us give Just question. to

Scott Y. H. Seo

shares, for much you Scott our Seo, the year, KBFG. dividend to to was very offer payout and XX% This of was additional thoughts. done. cancellation through CFO respect is treasury question. also done, like Thank the With your Last dividends, dividend I’d payout of Y. X.X% H. you

second consideration There into taking consider. will for the dividend, year, the situations rest, of different first plan need share And quarter, quarter, been has on our the year end amount lot resolution the what be BOD based exact third we are it today, things of decide will done that will dividend And XXX decided. quarter, this So per a evenly. at many KRW is, we the to be.

And so much we have to think about.

no if and price, cash dividend, rise dividend. now. the if with gains, And there’s in a there’s a to right buyback there’s the there’s capital then respect tax. a then stock First, also, on treasury cancellation, But tax

then to that have X than KBFG, about X. KRW book as tax -- issue So less we secondly, less price think than it’s transacted is well. currently, the KRW And at

So better distressed need not also option. the KBFG but only a cash shares is canceled. bought to and dividend important, be be That might then might

So started thirdly, when to don’t do quarterly there And this consider. yet. then most quarterly we companies have are the listed caps that that’s the something that of top need dividends XX dividend we in quarterly who market them but many dividends, have did still time, been Korea,

results, And quarter as will there’s indirect have volatile need saw So on market. as our changes in the portfolio. the great in well been in we also to impact first investment you capital portfolio what about think that

bond demand is corporate much corporate higher CIB Compared individual loans. so weight has the slow, And been to risk loans a large for increasing. loans, issuance but is these

so that into to And need well. also our we strategy factor growth as

KRW return. conclusion, and in we will of the we paid consideration the a the that be second, rest taking shareholder first DPS with the of out of in a XXX the factors into end So year, XXXX, different quarterly at in do all maximize third quarter, dividend way a will quarter,

that’s so moment. can this you. And I say at Thank what

Unidentified Company Representative

I questions. asked understand about three you the

do question was And policy. first question on third, And interest second The rate-related to had growth. with LTV.

them. each through walk will I of So one

because trillion rates gone loan have reduced as has loan property QX, become was X.X our household KRW up, sluggish. the the Now market by know, you

been QX of performance on the well because weak. demand as was slow. been So loan quite household that, stronger had a overall And has requirement. loan there cap volume quite as And our DSR

the X.X we in loans, On trillion. KRW grew other hand, by QX, corporate

low-risk been growth. And SMEs For large have for borrowers, IB, able growing. especially drive SOHO to on and are we we significant corporation

and also Now in QX, expect we lending strong to look household we forward to loan corporate growth, recover.

related to there terms So growth loan X.X%. is and currently, And our this objective, exercised year, contract due, there the be that. there visible, rest target real demand expectations. in this of once estate will we We X% more for at In is able suppressed And recovery. market believe and is once and comes still significant this will our achieve is related business, relevant then there loans, of the collective growth are time, rights. the policy that in household slow becomes demand. this of Jeonse which the Jeonse the the rate, And upcoming, achievable. regulation positive for that the be a basically, believe we payments. think level X% growth terms are although maturity changes the need there to in And a year, we then is also the If that the are exists August, is

So expect follow demand that. we the to

for loan. But because seen market cut. we to unable Moving the that demand provided the that year, a interest rate we rate. provide company, landscape. a provide significant were in competitive preferential the could on to April, preferential And we those book, cut and loan of the we’ve in have loan to in cap, depending Beginning to in there’s last temporary backdrop. their because drop limit. we demand, rates on had of continuously interest their rate year, interest believe grow our order to cut interest some that significant been March of rate and And respond banks loan of

our be strong quite still flexible a rate will we interest we’ll but on focus operating forward, policies, Going profitability. have in

requirement go market, Especially requirement. up. first financial the that believe of or backdrop LTV think market the is up, tier lessened will positive. loosened If to the become in demand we will LTV we on Moving quite

However, there is DSR requirement.

capped. As the stays demand be the is as DSR same, increase long to going

In respond terms that benefits, subordinated in we are alleviate order the overall their cost, in can existing so of the financing who different customers demand. we the structure, to various providing to are

Peter Kweon

detailed Mr. UBS Kim? the very Thank We’ll you answers. next for question. take those Securities, much

Hyung Kim

the be Next IFRS consolidation your year, I have on to that introduced. the impact will expected IFRS understand what company would XX your with XX is insurance consolidated to implementation for FG, and the understand statement? I like

Peter Kweon

us moment that to one to question. respond Yes, give

Byung-Joo Oh

My Financial I’m KB at Oh name Director Group. is Managing Byung-Joo. the

IFRS are at of know, especially, look actuarial you There changes you if as final to yet bit the be well the XX, assumptions accounting, As a And requirements are is there economic and quite there. statements. concluded. insurance aspect as financial

we competitiveness. aspects key of the need that able are going changes to in there be terms to provide be when actually our regime, in reliable to information. financial is So And

impact, assess and force we And in-source channel stabilize and we system, the before all value the assumptions, in need product we and for also Insurance, the have really to capabilities financial policies. all that. KB retention the capabilities overall So accounting and revisit

is those year, be the aspects, really requirement, need doing. believe very we what and we look conduct All of and After XX. the a going of of once able after what final KIC’s IFRS as KIC’s to be which the of financial have closely, we to to second I are clearer is impact half this study will understanding study, we implementation that more impact the

Peter Kweon

Seok. next question Morgan We’ll take Stanley, the Mr. from

Joon Seok

bit Last the quarter the sluggish. but well. of securities course, did this year, did in In we of quite it But expect first nonbanking. it, was year, a

be second So you wasn’t DCM of And the but the for securities? also outlook and CIB, bad. quarter the mentioned will in second that maybe also the year, half the what

Peter Kweon

Seok. Mr. you. Thank

one give moment. us Just

Han Jung-Ho

that KB am Jung-Ho, CFO for of Securities. I Han Thank you question.

results. earnings QX our Now

down our XX% has a average basis. income gone fee As brokerage on you daily know, by

interest happened. and And down. what the And losses. The trading equity and wealth in is some problem we down, biggest commissions, fixed our going fell. income, is were actually brokerage ELS, prepayment In the to had the to we’ve management, So is on coming going actually up, sales be business. the equities that market impact felt going in it with rate expecting amount decline, is that’s

there So some weren’t but able we was because some there related hedge were losses. to recover costs, that,

-- were side. denominated segment, spread the able the on widen, rate did we Now cover, credit bond rate but interest won to on interest

FX So unable that on bond, for on even. it were basically, we rate. cover the But to was FX interest

deals, on On were basis, moving big deals. then there to So a year-over-year IB. IPO

on our up has profit significantly. So gone basis, year-over-year a quite

And seen performance. the overall so we’ve in improvement

the going securities our wealth going compared less trading I some is of going sell because But more have brokerage for will have improve the really impact. we significantly to so that resume Now forward, not of to private will to view, sales, flat. my today. is sanctions be what business? positive In believe to volume total is projection income management, But but that levied, on equity the we funds, to were some be able been that that unable or

in place. way big Now in trading. are protect is improvement seeing are spread, spread. there profit the credit fortunately, right But And hedge measures we seeing on in difference hike, credit the positions put the rate not QX, were certain where have NIM. a go interest in volume. we could And we sales side, spread, to up, biggest and some with interest our looked for credit company as of business some rate now, we hedging But against

In to we believe repayment -- are able sure to gains with any capabilities, second index, ELSs long that back pushed trading falling and we equity our spread-related don’t profit. some we additional So level will losses, early be has of I that on credit generate the we been half. as as from price, make with incur

XX related about payment early our KRW is going be QX, to gains come think billion. I

we -- gains. the current more expect as prepayment able the market as half, products, the go make of unless be index-based think further, So will market, falls second to we of we into I stock

we business, For to think deals. a fee growth. I to going our be brokerage compared big light don’t also forward, international forward was that income definitely, is in QX, to better going Even quite up. can But I look there’s IB previous in inbound going there performance. And that, of year, think more

So better expecting performance. we for our institutional business, are

businesses are brokerage So key company. year-over-year, and the for S&T

last to I improvement. QX may there be figure, but year, to we not that compared believe well So I perform as as expect some

Peter Kweon

Next question [Ph] is Dow. from Kim

Unidentified Analyst

noninterest Q-on-Q For income, On fees. have quite consolidated basis, was the increase I a encouraging. about a question

Y-o-Y of subsidiary, So card fees looking by are there a and a much was factor, declining. fee income And basis in and credit bank’s the fees, a which decline, brokerage the figures, at was and in also securities, banking more fees the the there one-off was a also very was bit IBs. on

backdrop can consolidated income, us expect you level we and on If that? the be will year? fee basis the can that So for a what consolidated context fees, to what give some this

Peter Kweon


the for prepare we wait us? While kindly answer, you would

Unidentified Company Representative

question. Thank I’d answer Yes. for that like that. you to

declined saw was the stock that’s market. in sluggish were because income trust sharply, the and the ELS bank income First, quite capital stock of overall also And a market that’s sales and why there. market decline and The sluggish the the we sluggish.

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be income volatility, mentioned, ECM So respect to CFO generating M&A, with are Securities could we some as income. and our fee continuously there this, but in

the we so past really X these during believe are And and efforts the to X reinforced, materializing. now Securities years been has franchise

and KB and continuously income focused Group And this of I fee that has on KB income, also Securities enhancing that’s the don’t so one-off I result think but rather feel is Financial that.

Peter Kweon

Thank you.

Gun. Lee Investment, DB Mr. from question Next Byung

Lee Byung Gun

Gun to two Lee like Securities. Investment questions. I Byung I’m and would from Yes, DB ask

be could First, there NIM, regarding perspectives. differing

on decelerating. time trends, growth Some up at basically, pricing the forward in are policy rate. may we say early the that are looking is compared it deposit And deposit to going But recent seeing speed and rates, rates core will uptrend.

a of you already what are at what’s and perspective, the come expectation be rate And is issue, simple industry about if And thoughts is have hike? KBFG’s your With in not at how second to So IFRS of just question what this? in that you priced provide big XX, and policy much on remains? industry. a RBC a it’s but together CEOs ratio, question. this falling, that talk understand may the I insurance look can issue

for X, considered like Tier to sub because an Tier how I So issue And debt your one XX X capital in RBC at IFRS But come that? were seeing in are be once rate impact of for the hike, of subsidiaries, would insurance using countering be position? your to kicks and are may through understand, approaches. the surge But not guess I that you you all. in, what

Peter Kweon

moment Just question. to give to one us respond your

Han Jung-Ho

I’m bank. Han of CFO the Jung-Ho,

per consecutive asked X You point rise expecting hiked. NIM. a were NIM. the about annum X Early been question to bank’s basis rates But X year, quarters, we about have the this policy

-- adjusted our see now basis points. we projection So we’ve at XX

mentioned, you’ve hike policy as So has rate priced in. already been the

NIM may The overall going the but bank cycle is in uptrend the So the rise interest. decelerate, to repricing for continue. the

in peers. For rate variable to higher portion. that our have is smaller case, portion other they But compared banks,

peers repricing cycle little extended. our So more is compared to a

upward speed an trajectory. NIM expect will on continue may just that slow. the So It’s we

Unidentified Company Representative

add on color Also more little that on a NIM. to question

now the that I has as of factors is of believe today very that than many you top in we know already that well rate As my The just I mean, there are and is has actually priced our steepened mentioned, there’s XX that CFO But impact showing in. understand policy trend. NIM. more from mind, bank curve factors. flattening yield the

curve yield those so being reflected. And are trends

that I believe can in the NIM improvement down. So QX, slow

However, on going those shareholders’ impacts of all the, absolute strong And equity. not deposit, has loss a is reserve just the that very X common rate companies, in but or level, capital guess, base, NIM. loan is the interest it have core an as I up. financial holding and improving Tier ratio also also we industry. equity behind NPL you in best the key best industry sources KBFG, the know, are the the those It

the basis, XXXX, we can the So entire to continue our NIM tell volatility. some show show that we quarterly believe an upward can all we are on there gain at But our On you impacts that a trajectory. positive year growth NIM. NIM looking will may

Unidentified Company Representative

impact IFRS on from XX, RBC ratio. aside the interest having Lee, asked you hike Mr. rate

that As year, you biggest facing. going are all issue resolved. rise next is be of this KICs are interest With insurers implementation the the to aspects know, rate related

against strengthen our including of other other opportunities for that. RBC ratio. is to So to bond actually to limited that avenues this defend means rate that capitalization, has go how do considering if classification use, is Even rather the the this have do Under to use debt. issue is are are move. assumption options being and we’re as today, and the rate that to the interest elevated, believe aggressive, us is with year. going And reclassify the we There going the could I for multiple we sub this this rate than to going year, continuously we the up, to of the and

Peter Kweon

the question JP Jihyun. Cho next take Morgan, We’ll from

Jihyun Cho

loans I’m loans the to but put the what COVID bit as on terms has be has for provisioning, also pressure the provisioning. of transpire, more for little provisioning And from the for Do well. not government, you’ve sure, the maybe transitioning mentioned provisioning SOHO of a so additional has by provisioning. that. us more actually extent It’s big has loans. been that quite that already the that. any The done? the provided banks in And bit asked for nonbanking see be To But I you I see putting regarding COVID-related has don’t committee sector reversal more banking possible and put have don’t should pressures now other really provisioning the a been sector. competitors that additional will

So with address policies bank’s may will that? how government possibility? the group’s a respect forward, going the and to the that pressure view you Is What’s there margin?

Peter Kweon

answer. to moment a prepare take our we’ll Yes,

Scott Y. H. Seo

was as Taking provisioning, I on the much were Yes. quarter. consideration, And items for basis basis in were asked, side. there last respect cost provisioning XX during XX reversed the cost basis XX in the But as Thank points year. happened credit points. COVID, is credit you mentioned that nominal quarter, on basis that first you first the That’s about on points. provisioning before into of basis, presentation, the points the a my an the very provisioning With to annual XX during provisioning many business, recurring was done. question.

want way also quarter Korea it in to is in more last to And that our done did a from some conservative, much distressed have they we more outlook provisioning was the provisioning case explained, as don’t very an banks, fourth the Compared quarter, they done. that U.S. larger again. provisioning, earnings that into emphasize is it additional we and be first has also just quarter, the of optimistic pre-COVID competitors, way little you the banks that announced provisioning. that to larger the have the first based take provisioning much know, as U.S. situation. at that our of the that provisioning during do So on the I do I I in different we banks than when we have time, had year, provisioning in on -- understand the But And once of think been a need assumption they And of much large would so that the a some very bit In consideration. and levels.

have don’t that competitors we did that quarter, in didn’t the agree we do we see. on during principles provisioning, provisioning with So first the but that. established, most done conservative I enough. we our have the Based way our

Unidentified Company Representative

My that. to KRW the the But But better XXX like elaborate under I for details, COVID-related and amount There’s if and the billion In the XXX Lim] and you reapplied moratorium. will that help KRW situation. it KRW understand look is the principal the billion. extension there are total at to know loans. XXX KRW who a billion you billion name think customers lot was in interest the Yes, Financial I Group. is from on XXXX, XXX about of [Yu about there’s I’d of provisioning been extension concern done.

people XXX that which some the although that, to they would some say grace And period, said amounted have that terminate billion. they KRW received

So still, KRW about it’s grace total. XXX of in the billion period of terms the in moratorium,

if at above sector, recent probability if look put, amount segment, XX% they at a trend to that, corporate let’s just certain But the provisioning you and be simply per of default, even Just take you level. don’t of than go look the support conservative. required more

So percentage. about the X% KRW there’s out applying default, and billion, collateralized probability that’s XXX of of

So LGV about is XX%.

X KRW So is be XX% below billion to going about of XXX KRW billion.

looking that COVID-XX that. banking at XX%, PD household support, the overall, we loan so are can So and of that, financial if segment, get even wait the of going those or balance, maturity thoroughly initiative But the concerned you out if you basically said overall, we be provision will moratorium, and having schedule, look of on COVID financial on to about more to and Well, XXX calculation, sector, amount nonbanking from of policy. PD, and on manage, do that relating people details policy extremely greatly transferring schedule, rate repayment to interest good the performance support, are at relating limited. the that under rise under the government that see is hike, said we at And our and to that. billion the impact KRW we the will

KB loans basis gone up basis. look you on If household trillion a points. the outstanding actual YTD by has actually YTD X.X total But at loans basis, XX is less delinquency about Bank, KRW

So it’s X.XX%.

those So relating loans. household still XX program billion the COVID, only moratorium being total asset of XX KRW small. loan is billion out of the to It’s to KRW very also well managed. household is under quality And

banking there’s So of it problem any on terms an impact the having is as if to in whole be limited. sector once again quite even a going

Peter Kweon

contact do us our Thank more seems, ask We at answer. just you you to we have, wait Well, you please the of further We’ll IR like minute and additional answers. the will team questions. before any with close. would those X questions, we for for provide it not who

to the Q&A us the that think session. I end So brings of

minute for We we wait will Thank before no just end Well, today’s conference you. further to officially would call. like one with more questions, we close.