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| Statement |
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| Indication of insurance related income, despite increase in costs owing to actuarial assumption changes of the financial authorities last year, related to IFRS 17 the second half of the year, growth of 8.5% was posted over the previous year, maintaining a solid earnings momentum |
| KB Financial Group's net profit attributable to controlling interest for 2023 posted KRW4,631.9 billion, it is up 11.5% Y-o-Y, driven by non-interest income led solid earnings improvements and stable cost control despite macro headwinds thus demonstrating the healthy fundamentals and ability for profit growth |
| In addition, the BPS posted approximately 148,241 and like the EPS thanks to our consistent efforts to enhance shareholder value including active share buyback and cancellation improved by around 9.3% Y-o-Y |
| Balanced and strong earnings fundamentals was achieved across all of the top line segments of the group, which resulted in record high gross operating profit for 2023, posting KRW16 Trillion, up 17.8% Y-o-Y |
| First the groups profitability, KBFGs 2023 ROE posted 9.18% and the recurring level of ROE excluding one off items stands at 11.53% level, highlighting continuous and solid earnings fundamentals |
| This improvement in NIM was a result of our utmost efforts in the management, including reducing funding costs by securing the industry's highest level of low cost core deposits through our superior sales capability and channel competitiveness and by significantly improving profitability of our financial investments compared to the previous year through profitability centered portfolio management |
| We expect this to underpin our sustained and strong growth going forward |
| Although last year's, net income did not quite meet the market expectations because of this, excluding such factors, the group's ordinary net income is approximately more than KRW5.5 trillion, which is the highest level of fundamentals found in the industry |
| Our superior earnings power capacity will become a great source for shareholder return |
| Against the backdrop of improving market conditions, including interest rates and stock indexes, efforts have been made to engage in timely responses to the market in addition to diversifying the funding asset portfolio leading to meaningful enhancements in the performance of marketable securities and derivatives |
| Such growth of the net fee income owes itself mainly to the solid growth of the business fees coming from the retail customer base of the credit card, securities and capital business despite the challenging market environment with the wealth management and real estate PF contracting |
| And led by the healthy loan growth of the bank assets that have expanded appropriately within the nominal GDP level |
| First, we have the highest level of earnings power or generating power in the financial industries |
| So regarding the CET1 ratio, I think it is improving and compared to your peers, I think it is very superior |
| Looking at the factors behind major movements, additional factors, including group's solid net profit growth and OCI movement, each contributed by around 144 bps and 24 bps, respectively, to push up the CET1 ratio |
| This is the result of improving net interest margins of 12 bps reflecting the effects of loan asset repricing on the back of rising interest rates last year, while Korean won loans of the bank increased 4% YTD securing a stable profit base |
| KBFG pledges that we will engage in a higher level of ESG management, which benefits its role as a leading financial group that will grow with the people through consistently implementing diverse social contribution finance programs that can provide realistic benefits that can be felt firsthand |
| The KB Financial Group has, over the years, played a leading role in terms of shareholder returns, and we intend to implement an even stronger shareholder return see going forward |
| In 2023, the other operating profit posted KRW413.9 billion, showing significant improvements over the previous year's large losses, up by KRW1,663.5 billion |
| Through detailed and sophisticated capital management plans, we will secure the highest level of capital adequacy in the industry and for capital in excess that goes beyond 13% of CET1 ratio, we plan to actively utilize this for shareholder return |
| Corporate loans posted KRW175 trillion a 7.7% increase YTD around KRW12.5 trillion increase and led last year's bank loan growth |
| So starting from this year, unless there is any exceptional events in the real estate market, we do believe that we will be able to manage developments going forward |
| As has been previously referred to, this is a mirror 0.1% increase over the previous year, and is the result of personnel restructuring, strict cost control, and other measures taken across the group to enhance cost efficiencies |
| So there was a pre-emptive provisioning for social contribution last year, but excluding that, 2023 recurring net profit stands at KRW3.5 trillion level and total operating profit posted about KRW16 trillion a 17.8% growth, a record high level |
| Once again, showing the firm commitment of the BOB and the senior management toward enhancing shareholder return and value |
| However, provisions for credit losses posted at KRW3,146.4 billion last year up significantly Y-o-Y |
| Next, in 2023, the group's net fee income and commission posted KRW3,673,5 billion, up 4.5% Y-o-Y, increasing by KRW159 billion approximately |
| In 2023, the group's net interest profit posted KRW12,141,7 billion, up 5.4% over last year |
| Next, 2023 EPS posted approximately 11,581 and on the back of sound income growth and share buyback and cancellation effect went up approximately 12.1% Y-o-Y |
| Jun Jeong Thank you very much for very superior earnings despite the difficult circumstances, and thank you very much for your shareholder return results |
| Statement |
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| After Taeyoung E&C filed for a debt-restructuring program in December, concerns are running high of deteriorating asset quality in the real estate PF market |
| However, the other operating profit in Q4 declined significantly Qo-Q posting losses of KRW595.7 billion |
| This is due to seasonal factors driving an increase in loss ratio, which led to a fall in insurance income added to which KRW333 billion of social contribution program expense was reflected as other operating expense |
| However, in the case of Q4 Group and Bank NIM with the gradual diminishing of the loan asset repricing effect, reflecting the interest rate hike in the second half of the year, both went down 1 bp Q-o-Q, respectively |
| RWA, which increased by KRW19.1 trillion YTD and the dividends share buyback and cancellation, which recognized in 2023, each contributed to 80 bps and 54 bps drop in CET1 ratio, respectively |
| In 2024 NIM and also with regards to your credit cost growth, if you have any guidance, can you share that also with your exemptions? And secondly, the US, real estate exposure, I think a lot of investors have questions about that |
| So rather than expectations in Q4 the credit cost was quite high, with regards to real estate PF, I do understand that there has been pre-emptive provisions |
| Finally, the group's credit loss are provisions |
| We have even more conservative provisioning for such, real estate and for funds as well it is a PL asset and, so we have taken impaired losses in end of 2023 |
| Due to continuing high interest rates, both at home and abroad, credit risk, especially in the real estate market has expanded substantially |
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