KB Financial Group Inc. (KB)

Price$128.68Cached quoteAs of 2026-09-04 23:21 UTC

AI: Fair-priced

Price checkThe shares look fairly priced after a big rise, with stronger profits offsetting the higher price.

The New York depositary share represents one common share. The corresponding Seoul close equated to about 10.6 times 2025 basic earnings of KRW15,437 per share. Management also said the stock had reached about one times book value, meaning roughly the accounting value of shareholders’ net assets, in July. That is no longer a deep discount, but first-half 2026 profit rose 13.1% and return on equity, the profit rate earned on shareholders’ capital, reached 14.09%. The evidence supports a fair-priced verdict rather than an extreme.

Big pictureRecent profit growth is real, but part of it depends on busy stock and investment markets.

Net income rose from KRW4.59 trillion in 2023 to KRW5.08 trillion in 2024, while operating income increased 26% in 2024. Cash generated by operations stayed near KRW4 trillion in both 2023 and 2024, though bank cash flows can swing sharply with deposits and securities, so profit and capital are better durability checks. In 2025 net profit reached KRW5.84 trillion, then first-half 2026 profit reached KRW3.88 trillion. The catch is that fast-growing securities and fee income supplied much of the latest acceleration.

Business strengthA strong capital cushion and shrinking share count improve resilience and each remaining share’s claim.

Year-end 2024 shareholders’ equity was KRW57.9 trillion, and cash exceeded reported debt by KRW13.1 trillion. For a bank, the more useful safety measure is the core common-equity capital ratio, a regulatory measure of loss-absorbing capital; it was 13.74% in June 2026, above KB’s 13.5% threshold for extra shareholder returns. In 2024, dividends plus buybacks equaled about 45% of net income, up from roughly 38% in 2023. Share-based employee compensation was KRW140 billion. The newer buybacks are intended for cancellation, reducing shares rather than diluting owners.

What could change the storySustained fees and capital returns support upside; weaker trading income or more bad loans would hurt.

The bull case is that fee income becomes more durable: first-half 2026 income from fees, trading, insurance and other non-lending sources rose 33.3%, fees exceeded 31% of the group’s main income streams, and securities supplied about 21% of group profit. The bear case is that this strength proves cyclical. Group lending margin fell 0.05 percentage point quarter to quarter, while some investment gains benefited from strong markets. At around book value, the price assumes double-digit profitability and continued capital returns. A break below the 13.5% capital threshold or renewed loan-loss pressure would weaken that case.

AI: News

First-half profit jumpsFirst-half profit rose 13%, helped by fees, showing KB can earn more outside traditional lending.

On July 23, KB reported first-half 2026 profit attributable to shareholders of KRW3.885 trillion, up 13.1% from a year earlier, with second-quarter profit of KRW1.992 trillion. Income from fees, trading, insurance and other non-lending sources rose 33.3%, while fee income exceeded 31% of the group’s main income streams as securities expanded. Group lending margin still slipped 0.05 percentage point quarter to quarter, so not all improvement is structural. The Korean shares fell about 2.7% the next trading day, but timing alone cannot show the earnings caused that move.

Another buyback and dividendKB approved buying back more of its own shares and paying another dividend.

Also on July 23, the board approved a KRW700 billion purchase of its own shares, intended for cancellation and initially estimated at about 4.0 million common shares, plus a KRW1,155 quarterly dividend totaling about KRW405.5 billion. This followed completion on July 16 of a KRW600 billion buyback that acquired 3.58 million shares. Management said total 2026 shareholder returns could reach KRW3.7 trillion. Fewer shares increase each remaining share’s claim on future earnings, while the dividend returns cash directly; both depend on maintaining enough bank safety capital.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2010	2009	2008	2007
Revenue	₩21.23T	₩11.02T	₩16.23T	₩13.78T	₩14.48T	₩12.49T	₩11.43T	₩10.86T	₩10.19T	₩7.44T	—	₩9.43T	₩8.87T	₩9.42T	₩10.12T
Operating expenses	—	—	—	—	—	—	—	—	—	—	—	₩6.15T	₩5.74T	₩5.32T	₩5.13T
Operating income	—	₩8.05T	₩6.39T	₩5.23T	₩6.10T	₩4.63T	₩4.49T	₩4.27T	₩4.02T	₩1.68T	₩1.82T	₩148.49B	—	—	—
Operating margin	—	73.02%	39.34%	37.98%	42.10%	37.10%	39.28%	39.30%	39.40%	22.52%	—	1.57%	—	—	—
EBITDA	—	₩8.96T	₩7.25T	₩6.05T	₩6.95T	₩5.51T	₩5.27T	₩4.68T	₩4.39T	₩1.97T	₩2.08T	₩508.05B	—	—	—
EBITDA margin	—	81.34%	44.68%	43.91%	47.97%	44.10%	46.14%	43.06%	43.03%	26.40%	—	5.39%	—	—	—
Net income	₩5.83T	₩5.03T	₩4.53T	₩3.89T	₩4.38T	₩3.52T	₩3.31T	₩3.06T	₩3.34T	₩2.19T	₩1.73T	−₩588.12B	₩720.64B	₩1.33T	₩3.76T
Net profit margin	27.47%	45.64%	27.89%	28.23%	30.27%	28.14%	28.98%	28.20%	32.80%	29.42%	—	−6.24%	8.12%	14.07%	37.11%
Basic EPSper basic share	₩16,267.04	₩12,880.00	₩11,483.00	₩10,230.00	₩11,134.00	₩8,843.00	₩8,449.00	₩7,721.00	₩8,305.00	₩5,588.00	₩4,396.00	—	—	—	—
Diluted EPSper diluted share	₩16,267.04	₩12,726.00	₩11,218.00	₩9,998.00	₩10,890.00	₩8,730.00	₩8,387.00	₩7,676.00	₩8,257.00	₩5,559.00	₩4,376.00	—	—	—	—