2019 Business Results “Proactive Response to Climate Changes” 3 Environment Friendly Management...
Transcript of 2019 Business Results “Proactive Response to Climate Changes” 3 Environment Friendly Management...
2019 Business ResultsFeb. 2020
ContentsI.
II.
III.
IV.
V.
2019 Financial Highlights
2019 Key Takeaways
2019 Financial Analysis
2019 Asset Quality
Appendix
1. The consolidated financial information of KB Financial Group Inc. (the “Group”) presented herein is based on the Korean International Financial Reporting Standards(K-IFRS). It is currently being audited by the Group’s independent auditor, and accordingly, is subject to change.
2. The consolidated financial reports presented herein is based on Korean IFRS9(K-IFRS9). Note that the financial results for years before 2017 contained herein have not been restated retrospectively.
3. As KB Insurance and KB Capital became wholly-owned subsidiaries of the Group on Junly 7, 2017, the financial results of KB Insurance and KB Capital have been fully consolidated in the Group’s financial statements since 3Q17.
4. Total may not sum due to rounding.
Disclaimer Statement
I. 2019 Financial Highlights _ Overview
2
Group Profitability Overview Highlights
Credit Cost for 2019
Continued subnormal level of credit cost despite broad economic slowdown attributable to sound loan growth and preemptive risk management
0.20%(Bank 0.04%)
New LDR (Dec. 2019)
Marked sufficient level of new Loan-to-Deposit Ratio by strategically and preemptively managing fundings and loan growth
98.7%
Net Profit for 2019
Increased 8.2% YOY mainly on the back of with expanded net interest income and net fee & commission income
\3,311.8 bn(+8.2% YoY)
Net Profit for 4Q19
Decreased 43.1% QoQ due to ERP costs and weak insurance business despite higher net fee & commission income from major subsidiaries
\534.7 bn(-43.1% QoQ)
Net Interest Income for 2019
Increased 3.3%, W292bn YoY mostly backed by loan book momentum of the Bank and Credit Card overcoming NIM contraction
\9,196.8 bn(+3.3% YoY)
Net Fee & Commision for 2019
Delivered modest growth even in the midst of withering financial markets, mainly due to improved performance in trusts and IB businesses
\2,355.0 bn(+5.0% YoY)
Group’s Net Profit Analysis (bn won)
533 3 9 19 191
※ Non-recurring items for 4Q19 (before tax)
· Kookmin Bank ERP costs: W173bn· Kookmin Bank bonus payouts: W63bn· Provisioning and other expenses related to real estate funds sold by KB Securities: W24bn
3,061
+ 8.2%Interest income
Fee & commission
income
Profit from financial
investments,etc.
Provision for credit
losses
Non- operating
profit
Tax expense
Profit from insurance business
G&A expenses
292112
353
173
3,312
2018 2019
Others
Note) Each earnings component is stated as in ‘before tax’ amount
8,904.9
2,243.4
-288.6
10,859.7
5,918.5 673.7
4,267.5
34.1
3,061.9
3,061.2
2018
3.3
5.0
N.A.
5.3
6.0 -0.5
5.2
27.0
8.2
8.2
YoY
2,319.4
580.8
-30.0
2,870.2
1,455.9 166.1
1,248.2
12.0
940.7
940.3
3Q19
0.4
9.9
N.A.
-2.5
24.6 26.7
-38.1
N.A.
-43.1
-43.1
QoQ2019
9,196.8
2,355.0
-119.9
11,431.9
6,271.0 670.3
4,490.6
43.3
3,313.2
3,311.8
4Q19
2,328.2
638.5
-169.0
2,797.7
1,814.3 210.4
773.0
-24.0
535.1
534.7
bn won, %
Net Interest Income
Net Fee & Commission Income
Other Operating Profit
Gross Operating Income
G&A Expenses Provision for Credit Losses
Net Operating Profit
Net Non-Operating Profit
Profit for the Period
Profit attributable to controlling interests
I. 2019 Financial Highlights _ Key Financial Indicators (1)
Maintained solid earnings fundamental despite
a broad economic slowdown
· 2019 ROE recorded 8.93% mainly on the back of expanded net interest income and net fee & commission income
· On a recurring basis disregarding ERP and digitalization costs etc., ROE for 2019 recorded 9.51% maintaining solid earnings fundamental dispite economic downturn
· KB aims to enhance profitability by expanding non-interest income and improving cost efficiency in response to low growth and interest rate environment
Continued quality loan growthapplying flexible lending policy
· Loans in Won of the Bank grew 4.5% YTD and 3.0% QoQ, amounting to W269tn
· Household loans increased 4.7% YTD and 3.4% QoQ mostly by Jeonse and unsecured loans
· Corporate loan increased 4.3% YTD and 2.5% QoQ mostly by prime SME loans on the back of eased market competition and flexible lending policy
Continued prudent margin management
· 2019 Bank NIM recorded 1.67%, marginally down by 4bp YoY despite key rate cuts and intensified market competition, which proves KB’s prudent financial management competency
· 4Q Bank NIM fell 6bp QoQ mainly due to decline of market rates and accelerated amortization of LOC related to Loan Conversion Program
· 2019 Group NIM marked 1.94% down by 5bp YoY further reflecting Card NIM contraction
257
2690.3 0.7 0.5
3.0
1.99 1.94
1.671.71
1.98 1.971.94
1.88
1.611.67
1.701.71
269261260258121118117116
2.50.81.2
-0.3148143143142
3.4
0.30.20.7
1Q1920192018 2Q19'19.3 '19.6 '19.9 '19.12 3Q19 4Q19
Group ROA, ROE (%) Loans in Won Growth (tn won, %) NIM (%)
20192018
Corporate Growth(QoQ)
Household Corporate Total Growth(QoQ)
Household Growth(QoQ)Group BankROA
ROE
ROA(Excl. non-recurring items)
ROE(Excl. non-recurring items)
3
+4.5%
2015 2016 2017 2018 2019
6.06
7.26
10.18
8.82
9.519.56
0.710.72
0.660.66
8.93
0.82
0.630.54
2015 2016 2017 2018 '19.3 '19.6 '19.9 '19.12(e)
I. 2019 Financial Highlights _ Key Financial Indicators (2)
2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19
0.44
0.22 0.20 0.21 0.21
0.15
0.210.25
0.08
0.04
0.20
15.48
13.59
14.3714.60
13.97 14.1114.40
14.64
14.3514.2314.1113.97
14.6014.25
13.47
15.27 15.23
14.60 14.7615.04
15.25
14.48
13.87
13.590.06
-0.03
0.050.040.050.11
0.34
2015 2016 2017 2018 2019
61.3
70.2
55.254.5 54.9
50.950.551.8
57.456.0
Group Cost-Income Ratio(CIR) (%) Credit Cost Ratio(CCR) (%) Group BIS Ratio (Basel III, %)
CIRCIR(Excl. non-recurring items)
BIS CET1Tier1Group CCR Bank CCRGroup CCR(Cumulative) Bank CCR(Cumulative)
4
Continued to enhance cost efficiency by managing
HR and cost structures
· 2019 Group CIR recorded 54.9%, similar level to 2018 CIR due to ERP costs and increased digitalization costs
· Excluding such one-off costs, CIR recorded 50.9% presenting continued improvement in cost efficiency
· KB continues to tighten the level of cost control by revisiting every costs groupwide except investment for future growth such as digitalization
Maintained subnormal level based on prudent
asset quality management
· 2019 Group CCR recorded 0.20% and retained subnormal level attributable to quality loan growth and preemptive risk management
· 4Q CCR posted a benign level of 0.25% despite absence of large-scale reversals of provisioning and seasonal factors such as evaluation based on FLC
· 2019 Bank CCR recorded only 0.04% on the back of conservative credit quality management and reversals of provisioning
The highest level of capital adequacy
in the Korean financial industry
· Group BIS and CET1 ratios are to mark 14.48%, 13.59%, respectively
· Contracted QoQ as a result of dividend payout and increased RWA, but maintained strong capital position and industry-highest capital adequacy
· Bank BIS and CET1 ratios are expected to record 15.85%, 14.38%, respectively
II. 2019 Key Takeaways _ 2020 Management Strategy & ESG for Sustainability
“Sustainable management through customer-centric innovation”
LEAD 2020
2019 Milestones
Kookmin Bank issued sustainability subordinated bond worth of USD 450M first time ever in Asia (February)
The Group launched “KB Innovative Finance Council” dedicated to providing support for start-ups and SMEs (April)
Kookmin Bank became the first Korean bank to issue sustainability contingent convertible bond of USD 500M (June)
The Group signed “Principles for Responsible Banking” under the U.N. Environment Program Finance Initiative and participated in “Collective Commitment to Climate Action” (September)
The Group pledged to comply with “Women’s Empowerment Principles” (October)
$
Key Achievements
KCGSBESTGOVERNANCE
The Group has been incorporated into “Dow Jones Sustainability Indices” for four consecutive years
The Group received an A+ rating and awarded as the best CGS company by KCGS for two consecutive years
The Group has been incorporated into “Bloomberg Gender Equality Index” for two consecutive years, first time ever in Korea
DJSI
ESG conscious lending & investments
Develop ESG products
Deliver inclusive finance“ESG Products and Services”
1 ESG Innovation for Sustainable Management
Expand social contribution
Mutual cooperation & shared growth
Human rights & diversity“Responsible Management for All
Stakeholders”
2 Socially-Responsible Management
Reduce carbon emissions
Management of environment risk
Leader in sustainable finance“Proactive Response to Climate
Changes”
3 Environment Friendly Management
2020 Management Strategy ESG Management for Sustainability
5
L Strengthen core competitivenessevel up the core· Reinforce core businesses & rebuild efficient business models·Innovate cost structure & improve cost efficiency·Strengthen crisis and risk management systems
E Expand business portfoliosxpansion (of the territory)
· Pursue inorganic growth in domestic market·Expand overseas business·Develop and secure new revenue sources
Establish dynamic & creative culturective & Creative KB· Advance groupwide operating systems·Diffuse “New KB” corporate culture·Strengthen ESG management & initiatives·Innovate human resources mgmt. & trainning programs
Pursue customer-centricdigital innovationigital Innovation (Customer-centric)
· Provide unrivaled customer experience based on data·Diversify customer access channels & marketing activity·Enhance KB digital ecosystem & Digital Transformation feasibility
A
D
II. 2019 Key Takeaways _ KB Globalization & Acquisition of PRASAC
ORGANIC INORGANIC Target Net IncomeContribution
2018
1.8%
5yrs
10%
10yrs
20%
・ PRASAC
・ Maritime Securities Incorporation
・ Tomato Specialized Bank
・ Bank Bukopin
Expansion of KB Networks
M&As
・ KB KOLAO Leasing
・ Kookmin Bank(New York, London, Vietnam)
・ KB MFI Myanmar Loan M/S 5-year Average Growth of Loans: 36% Key Financials
· In December 2019, Kookmin Bank announced its BOD resolution to acquire PRASAC
· Number of shares acquired : Approx. 161 million shares (70% stake)
· Purchase price : USD 603M (approx. 2.13 times PBR against expected book value of 2019)
· Acquisition schedules : Acquisition of 100% ownership stake will be split to manage downside risks ◦ First 70% acquisition is scheduled to be made by March 2020, and the remaining 30% after 2021
· Unrivaled No. 1 MDI in Cambodia
· (Cambodia) Launched Liiv KB Cambodia(local digital banking)2016 Bank
· (Indonesia) Acquired 22% stake in Bank Bukopin
· (Cambodia) Launched KB Daehan Specialized Bank
· (Vietnam) Established KB Securities Vietnam(former MSI)
2018Bank
Card
· (Vietnam) Acquired Maritime Securities Incorporation(MSI)
· (Laos) Established KB KOLAO Leasing(auto finance company)
· (Myanmar) Established KB MFI Myanmar
2017 Card Capital
Bank
· (Cambodia) Acquired 70% stake in PRASAC, the largest local MDI
· (Cambodia) Liiv KB Cambodia reached 98 thousand users
· (Cambodia) KB Daehan Specialized Bank recorded USD 0.29M net income for three quaters 2019
· (Vietnam) KB Securities Vietnam raised capital by KRW 70bn and ranked 10th largest securities company in Vietnam
2019
Bank
Card
Securities
Bank
PRASAC(41.4%)
USD million
B/S
Total assetsLoansDeposits
2,3791,9621,291
793.8%/29.4%
0.7%16.5%
2018
2018
2020 2021 ~ 2022 2023 ~
· Leap toward a leading bank in Cambodia through successful PMI that incorporates Kookmin Bank’s key expertise in retail and digital banking with PRASAC’s own competitiveness
· Implement and achieve key tasks by actively interacting with PRASAC’s top management
· Keep KB’s controlling power over the board of PRASAC by nominating six out of nine directors
Rebuild corporate governance
Identify areas for improvement
Convert to commercial bank & merger with KB Cambodia
Leap towardNo.1 Bank in Cambodia
Improve funding and key business areas
Optimize sales channels and IT infrastructure
Redesign risk management and internal controls
Establish new vision and corporate values
(USD million)
LoansDepositsBorrowings
2014 2015 2016 2017 2018
581857
1,0311,549
1,962
KB Globalization Acquisition of PRASAC, the largest MDI in Cambodia
Global Business Strategy
Accelerated Globalization
Acquisition Overview
PRASAC Highlights
PMI Plans
6
Net incomeROA/ROENPLCAR
Securities
Securities
III. 2019 Financial Analysis _ Net Interest Income
Net Interest Income (bn won)
Loan Growth (tn won, %)
NIM (%)
'18.3
239244
252257 258 260 261
269
'18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12
Bank Loans in Won Growth(QoQ) Growth(YTD)
2.01
1.71 1.71 1.72
1.70
2.00 1.99
1.8 2.13.2
2.10.3 0.7 0.5
3.0
4.5
1.40.9
9.6
7.3
4.0
1.98
1.98
1.71 1.701.67
1.61
1.67
1.971.94
1.88
1.94
1.99
1.71
2015 2016 2017 2018 2019
6,203 6,403
8,2478,905 9,197
3Q19 4Q19
2,319 2,328
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
BankGroup Cumulative
2019bn won, % 2018 YoY 4Q19 3Q19 QoQ
Interest Income
Loans
Financial Investments
Other
Interest Expense
Deposits
Debts & Debentures
Other
Net Interest Income
14,639.2
12,295.2
2,042.8
301.2
5,442.4
3,481.1
1,837.0
124.3
9,196.8
13,734.6
11,459.8
2,036.1
238.7
4,829.7
3,041.7
1,693.3
94.7
8,904.9
6.6
7.3
0.3
26.2
12.7
14.4
8.5
31.3
3.3
3,671.6
3,086.2
509.0
76.4
1,352.2
863.8
457.6
30.8
2,319.4
-1.2
-1.5
-0.3
2.6
-3.9
-3.9
-3.8
-7.1
0.4
3,627.2
3,041.3
507.5
78.4
1,299.0
830.2
440.2
28.6
2,328.2
Group Net Interest Income
7
III. 2019 Financial Analysis _ Net Non-Interest Income
Net Fee & Commission Income Contribution
49.9% 48.0%
50.1% 52.0%
2018 2019
Others (Incl. subsidiaries related activities)Banking Activities
Bancassurance TrustsMutual Fund Sales etc.
IB
Brokerage Credit Card
Trusts Others
Banking Non-banking
Note) Based on simple arithmetic sum of each subsidiary’s Net Fee & Commission Income on the financial statements for group reporting
Net Fee & Commission Income (bn won)
172
1,156
10998
1,088
21292193
1,125
240133
552
1,123
230
265
625
1,133
380
262
580
Note) Based on each subsidiary’s Net Fee & Commission Income on the financial statements for group reporting
Note) Based on simple arithmetic sum of each subsidiary’s Net Fee & Commission Income on the financial statements for group reporting
10168143
269
10989
154
287
581
3Q19
639
4Q19
Composition of Net Fee & Commission Income
66
129
308
222
Bank
408
248
202
291
Non-Bank
245
244
SecuritiesBank Card Others(Incl. adjustment for consolidation)
Group Net Non-Interest Income
2019
2,355.0
424.2 542.1
172.2
145.8
214.5 446.0 410.2
-119.9
2,235.1
2018
2,243.4
452.7 496.4
149.6
167.1
208.4 518.3 250.9
-288.6
1,954.8
YoY
5.0
-6.3 9.2
15.1
-12.7
2.9 -13.9 63.5
N.A.
14.3
4Q19
638.5
134.4 131.6
48.5
34.2
50.9 124.8 114.1
-169.0
469.5
3Q19
580.8
102.2 128.5
42.4
38.5
56.1 109.3 103.8
-30.0
550.8
QoQ
9.9
31.5 2.4
14.4
-11.2
-9.3 14.2
9.9
N.A.
-14.8
bn won, %
Net Fee & Commission Income
Credit Card Fees Trusts
Agent Activity Fees (Incl. Bancassurance)
Represent Securities (Incl. ITC Products) Banking Activity Fees Securities Business Other
Other Operating Income
Net Non-Interest Income
2,3552,2432,050
1,5851,535
2015 2016 2017 2018 2019
8
(2019, bn won)
Provision for Credit Losses & CCR (bn won, %)
2015 2016 2017 2018 2019 3Q19 4Q19
1,037
539 548 674 670
166210
III. 2019 Financial Analysis _ G&A Expenses & Provision for Credit Losses
Provision for Credit Losses CCR
3891,041
345 434 484
68
1,388
306
1,508
5,485 5,787
5,284
4,188 4,135
56.0
61.370.2
55.2 54.5 54.9
57.451.8 50.5 50.9
G&A Expenses & CIR (bn won, %)
Note) Non-recurring items include ERP costs, etc.
2015 2016 2017 2018 2019 3Q19 4Q19
G&A Expenses Non-recurring items CIR CIR(Excl. non-recurring items)
0.44
0.22 0.20 0.21 0.20 0.21 0.25
Group G&A Expenses Group Provision for Credit Losses
3,874.4
408.8
1,443.6
191.7
5,918.5
2018
2.1
91.9
-8.8
11.9
6.0
YoY
884.2
195.2
326.3
50.2
1,455.9
3Q19
31.0
15.8
16.3
0.2
24.6
QoQ2019
3,955.3
784.4
1,316.7
214.6
6,271.0
4Q19
1,158.5
226.1
379.4
50.3
1,814.3
bn won, %
Employee Benefits
Depreciation & Amortization
Administrative Expenses
Others
G&A Expenses
685.4 -25.7
14.6
-0.6
673.7
2018
-2.3 N.A.
N.A.
N.A.
-0.5
YoY
166.0 -0.1
0.0
0.2
166.1
3Q19
30.6 N.A.
N.A.
N.A.
26.7
QoQ2019
669.5 1.9
-3.0
1.9
670.3
4Q19
216.8 -6.3
0.4
-0.5
210.4
bn won, %
Provision for Loan Losses Provision for Guarantees
Provision for Unused Commitments
Provision for Financial Guarantee Liabilities
Provision for Credit Losses
9
12.915.94.1
275.5
28.3
59.2
131.8
51.7
30.8
51.0
123.3
47.6
25.8
50.6
115.2
43.3
22.4
52.7
97.8
43.719.6
47.5
19.1
34.2
18.336.114.328.1
16.616.16.1
290.3
20.415.832.4
307.1
19.517.732.437.4
329.8
45.1
34.820.522.2
357.0387.4
23.723.036.6
47.9
III. 2019 Financial Analysis _ Financial Position Overview
329.1
375.7
436.8
479.6518.6
2014 2015 2016 2017 2018 2019
2014 2015 2016 2017 2018 2019
308.4
Note) Based on each subsidiary’s total assets on the financial statements for group reporting
Bank Trust Securities Asset Management Real Estate Trust & Others
Bank Securities Insurance Card Others(Incl. adjustment for consolidation)
96.8120.4
216.6234.9
252.7271.0
Group Assets (tn won)
Group AUM (tn won)
10
tn won, %
Assets
Liabilities
Shareholder's Equity
Cash & Due from Financial Institutions FVTPL1) Assets
Financial Investments Loans Property & Equipment Other Assets
FVTPL1) Liabilities Deposits Debts Debentures Other Liabilities
Share Capital Hybrid Securities Capital Surplus
Accumulated Other Comprehensive Income Retained Earnings Treasury Shares Non-Controlling Interests
Note 1) Fair Value Through Profit or Loss 2) Based on simple arithmetic sum of each subsidiary’s total assets on the financial statement for group reporting and AUM 3) Including the Bank’s trust asset not subject to group reporting
Group Total Assets 2)
AUM 3)
506.2
467.5
38.7
22.0
51.868.4
326.37.6
30.1
17.4288.6
33.650.677.3
2.10.4
17.1
0.5
19.2-1.20.6
2019.9
772.5
266.2
20.8
53.771.8
339.77.9
24.7
15.5305.6
37.850.969.7
2.10.4
17.1
0.3
19.7-1.1
0.6
518.6
479.5
39.1
2019.12
271.0
789.6
-5.5
3.75.04.13.9
-17.9
-10.95.9
12.50.6
-9.8
--
0.0
-40.0
2.6N.A.0.0
2.4
2.6
1.0
QoQ
1.8
2.2
2.5
5.316.4
6.423.417.6
1.310.414.5-4.56.4
-N.A.0.0
50.0
13.9N.A.N.A.
8.1
8.0
9.5
YTD
7.2
7.9
15.3276.8
33.053.365.5
2.10.0
17.1
0.2
17.3-1.00.0
479.6
443.9
35.7
2018.12
20.3
51.061.7
319.26.4
21.0
731.8
252.7
Group Financial Position
6.6
12.7
25.7
26.3
28.7
7.0
12.4
25.5
27.7
26.4
6.8
12.3
25.6
29.4
26.5
8.112.1
24.4
29.3
26.5
12.98.2
23.3
29.9
25.8
III. 2019 Financial Analysis _ Assets & Liabilities
Loan Portfolio & LDR (tn won, %)
2015 2016 2017 2018 2019
207.3 220.6 234.9 257.4 269.0
Mortgage General SOHO SME(Excl. SOHO) Large Corp. etc. LDR
99.0 98.7 98.8 99.6 94.1
Bank Loans in Won
Bank Deposits & Debentures in Won
143.0
72.1
70.9
33.0
118.1
100.7
67.3
17.4
261.1
2019.9
3.4
7.1
-0.3
-3.6
2.5
2.6
2.8
2.3
3.0
QoQ
4.7
10.4
-1.0
-7.6
4.3
5.4
5.5
-1.7
4.5
YTD2019.12
147.9
77.2
70.7
31.8
121.1
103.3
69.2
17.8
269.0
2018.12
141.3
69.9
71.4
34.4
116.1
98.0
65.6
18.1
257.4
tn won, %
Household
Mortgage
General
[Home Equity]
Corporate
SME
[SOHO]
Large Corp. etc.
Total
266.3
116.8
144.4
131.1
5.1
13.7
280.0
2019.9
5.7
6.6
5.9
6.3
-17.6
-5.1
5.2
QoQ
9.6
10.4
8.7
9.3
20.0
-27.0
7.2
YTD2019.12
281.6
124.5
152.9
139.3
4.2
13.0
294.6
2018.12
256.9
112.8
140.6
127.4
3.5
17.8
274.7
tn won, %
Deposits
Core Deposits
Time & Savings
[Time Deposits]
CD, RP, etc.
Debentures
Total
Card Assets
17.8
11.5
4.8
5.1
1.2
3.0
20.8
2019.9
17.3
11.1
4.8
4.9
1.3
2.2
19.5
QoQ
7.5
9.0
6.3
8.2
-7.7
50.0
12.3
YTD2019.12
18.6
12.1
5.1
5.3
1.2
3.3
21.9
2018.12
4.5
5.2
6.3
3.9
0.0
10.0
5.3
tn won, %
Credit Card
Credit Sales
[Installments]
Card Loans
Cash Advance
Factoring, etc.
Total
11
IV. 2019 Asset Quality _ Group Overview
Credit Cost Ratio (%) NPL Coverage Ratio (%)
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
Group Bank Card Group Bank Card
'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12
Precautionary & Below Ratio NPL Ratio
0.08
0.23
2.51
2.25
0.13
-0.05 -0.01
0.17
2.17
0.13
0.30
2.44
0.05
0.21
2.23
-0.03
0.15
2.06
0.06
0.21
2.15
0.08
0.25
2.14
1.56
133.3
292.9
0.70
1.50
135.6
289.8
0.66
1.46
137.9
283.7
0.61
1.42
138.9
278.1
0.61
1.39
138.2
268.6
0.60
1.40
132.8
262.4
0.59
1.38
135.6
246.6
0.55
1.27
147.1
263.4
0.49
Precautionary & Below Ratio / NPL Ratio (%)
'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12
Group Asset Quality
12
Note) Based on simple arithmetic sum of each subsidiary’s figures
323,399.9
2,665.6 806.7 637.8 339.3
1,783.8
0.55%
2,418.5
135.6%
2019.9
316,736.9
2,591.5 694.9 882.2 343.3
1,920.4
0.61%
2,667.6
138.9%
QoQ
5.6
0.7 -4.7
-20.6 -16.0
-14.0
-0.12%p
-8.9
8.2%p
YTD2019.12
334,552.5
2,608.4 662.5 700.9 288.4
1,651.8
0.49%
2,430.0
147.1%
2018.12
3.4
-2.1 -17.9
9.9 -15.0
-7.4
-0.06%p
0.5
11.5%p
bn won, %
Total Loans for NPL Classification
Precautionary Substandard Doubtful Estimated Loss
Substandard & Below Loans(NPL)(A)
NPL Ratio
Loan Loss Reserves(B)
NPL Coverage Ratio(B/A)
117.6 119.8 122.0 122.3 120.2115.3 118.1 130.2
IV. 2019 Asset Quality _ Bank & Card
Delinquency Ratio (%)
1.25
0.28 0.26 0.25 0.23 0.27 0.26 0.29 0.24
1.23 1.26 1.201.32 1.25
1.16 1.11
'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12
CardBank
CardBank
Bank Credit Cost Ratio (%)
0.10
0.05
0.16 0.15 0.12 0.16 0.14 0.19
-0.08-0.20
-0.06 0.130.13
-0.16
-0.05
-0.27
0.08
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
Bank Household Corporate
0.05-0.03
0.06
0.190.08-0.04
NPL Ratio (%)
1.40
0.58 0.54 0.48 0.48 0.47 0.45 0.41 0.37
1.40 1.41 1.38 1.46 1.46 1.49 1.37
'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12
Bank Asset Quality
280,043.4
1,321.0 712.9 277.9 156.8
0.41%
118.1%
2019.9
274,486.0
1,245.7 607.4 505.5 194.7
0.48%
122.3%
QoQ
5.3
0.3 -2.8
-30.7 -40.1
-0.11%p
7.9%p
YTD2019.12
288,896.7
1,249.2 590.4 350.2 116.6
0.37%
130.2%
2018.12
3.2
-5.4 -17.2 26.0
-25.6
-0.04%p
12.1%p
bn won, %
Total Loans for NPL Classification
Precautionary Substandard Doubtful Estimated Loss
NPL Ratio
NPL Coverage Ratio
Card Asset Quality
20,863.5
842.1 0.6
243.1 67.3
1.49%
246.6%
2019.9
19,499.6
799.5 3.2
217.5 48.6
1.38%
278.1%
QoQ
12.4
9.5 12.5
2.5 50.2
-0.01%p
-14.7%p
YTD2019.12
21,922.4
875.1 3.6
223.0 73.0
1.37%
263.4%
2018.12
5.1
3.9 500.0
-8.3 8.5
-0.12%p
16.8%p
bn won, %
Total Loans for NPL Classification
Precautionary Substandard Doubtful Estimated Loss
NPL Ratio
NPL Coverage Ratio
Provision for Loan Losses
97.1
177.5 -80.4
416.2
2018
41.5
70.1 -28.6
110.3
3Q19
30.4
-2.6 N.A.
4.9
QoQ2019
113.2
243.1 -129.9
432.6
54.1
68.3 -14.2
115.7
4Q19YoY
16.6
37.0 N.A.
3.9
bn won, %
Bank
Household Corporate
Card
13
-0.01
V. Appendix _ Overview of Group Subsidiaries 1) (2019)
(bn won) Assets Shareholder's Equity Profit for the PeriodOwnership ROA ROE
KB Kookmin Bank
KB Securities
KB Insurance
KB Kookmin Card
KB Asset Management
KB Capital
KB Life Insurance
KB Real Estate Trust
KB Savings Bank
KB Investment
KB Data Systems
KB Credit Information
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
387,425.0
47,857.1
36,552.4
22,990.1
310.0
11,190.6
9,801.9
377.9
1,361.0
757.0
41.7
27.8
29,004.2
4,684.7
3,862.9
4,064.9
195.2
1,154.5
615.3
292.8
212.4
214.8
20.7
14.9
2,439.1
257.9
234.3
316.5
48.9
117.0
16.0
61.7
16.3
11.3
4.7
-0.3
0.65%
0.57%
0.65%
1.48%
18.85%
1.17%
0.16%
18.09%
1.21%
1.66%
11.60%
N.A.
8.82%
5.62%
6.23%
8.02%
28.47%
10.74%
2.67%
23.52%
7.89%
6.04%
24.92%
N.A.
Note 1) Based on each subsidiary’s financial statements for group reporting
14
-17.5
97.2
-57.3
22.4
94.3
12.1
-84.0
-9.0
-119.4
-117.9
V. Appendix _ Condensed Income Statement by Subsidiaries
Profit attributable to controlling interests
Profit attributable to controlling interests
KB Kookmin Bank
KB Kookmin Bank
KB Kookmin Card
KB Kookmin Card
KB Asset Management
KB Asset Management
KB Life Insurance
KB Life Insurance
2019
2018
KB Securities
KB Securities
KB Capital
KB Capital
Others 1)
Others 1)
Net Interest Income
Net Fee & Commission Income
Other Operating Profit
Gross Operating Income
G&A Expenses
Provision for Credit Losses
Net Operating Profit
Net Non-Operating Profit
Profit for the Period
Net Interest Income
Net Fee & Commission Income
Other Operating Profit
Gross Operating Income
G&A Expenses
Provision for Credit Losses
Net Operating Profit
Net Non-Operating Profit
Profit for the Period
9,196.8
2,355.0
-119.9
11,431.9
6,271.0
670.3
4,490.6
43.3
3,313.2
3,311.8
8,904.9
2,243.4
-288.6
10,859.7
5,918.5
673.7
4,267.5
34.1
3,061.9
3,061.2
6,363.8
1,133.3
-178.0
7,319.1
3,887.4
103.6
3,328.1
-9.6
2,439.1
2,439.1
6,100.7
1,122.7
-370.0
6,853.4
3,767.0
93.9
2,992.5
93.9
2,259.2
2,259.2
529.9
580.4
-15.9
1,094.4
757.3
14.3
322.8
30.4
257.9
257.9
542.2
625.7
-187.5
980.4
735.2
10.1
235.1
13.9
178.9
178.8
616.4
-152.6
667.6
1,131.4
843.8
-13.0
300.6
26.5
234.7
234.3
616.2
-147.0
693.7
1,162.9
789.4
14.5
359.0
8.1
262.4
262.3
1,230.3
261.8
-231.1
1,261.0
441.9
439.7
379.4
4.5
316.6
316.5
1,168.3
264.7
-128.0
1,305.0
404.9
431.0
469.1
-32.9
286.6
286.6
0.9
117.2
9.5
127.6
60.9
0.0
66.7
-0.5
48.9
48.9
1.0
113.3
-3.2
111.1
56.6
0.0
54.5
-1.5
39.6
39.6
313.8
334.5
-257.0
391.3
118.9
116.6
155.8
1.0
119.4
117.0
306.6
180.1
-139.9
346.8
98.6
92.3
155.9
1.9
113.4
111.9
159.2
-16.8
-57.7
84.7
66.5
-3.0
21.2
0.0
16.0
16.0
185.1
-13.2
-85.5
86.4
63.4
0.4
22.6
-1.4
14.8
14.8
-15.2
97.1
-68.2
13.7
3.4
31.5
-21.2
-47.9
-93.0
-92.0
KB Insurance
KB Insurance
Note 1) Includes financial results of the holding company, the other subsidiaries and adjustment for consolidation
(bn won)
(bn won)
Group
Group
15