UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2021
Commission File Number: 000-53445
KB Financial Group Inc.
(Translation of registrant’s name into English)
141, Uisadang-daero, Yeongdeungpo-gu, Seoul 07332, Korea
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Preliminary Operating Results for Fiscal Year 2020
On February 4, 2021, KB Financial Group Inc. (“KB Financial Group”) held an earnings conference and released its preliminary operating results for fiscal year 2020. The following tables reflect the key figures released during the conference. The presentation materials for the conference, which contain further details, are available at KB Financial Group’s website (http://www.kbfg.com).
The preliminary figures presented herein are based on International Financial Reporting Standards as adopted by the Republic of Korea (“K-IFRS”) and are currently being audited by KB Financial Group’s independent auditors and are subject to change.
1. Preliminary Operating Results of KB Financial Group (Consolidated)
| (Won in millions, %) | 4Q 2020 | 3Q 2020 | % Change Increase (Decrease) (Q to Q) | 4Q 2019 | % Change (Y to Y) | |||||||||||||||||
Operating revenue | Specified Quarter | 15,093,914 | 10,533,000 | 43.30 | 9,230,463 | 63.52 | ||||||||||||||||
| Cumulative | 55,623,822 | 40,529,908 | — | 47,169,682 | 17.92 | |||||||||||||||||
Net operating profit | Specified Quarter | 769,893 | 1,416,525 | (45.65 | ) | 773,052 | (0.41 | ) | ||||||||||||||
| Cumulative | 4,615,992 | 3,846,099 | — | 4,490,649 | 2.79 | |||||||||||||||||
Profit before income tax | Specified Quarter | 795,156 | 1,570,874 | (49.38 | ) | 749,091 | 6.15 | |||||||||||||||
| Cumulative | 4,761,632 | 3,966,476 | — | 4,533,986 | 5.02 | |||||||||||||||||
Profit for the period | Specified Quarter | 576,647 | 1,194,220 | (51.71 | ) | 535,117 | 7.76 | |||||||||||||||
| Cumulative | 3,502,281 | 2,925,634 | — | 3,313,199 | 5.71 | |||||||||||||||||
Profit attributable to shareholders of the parent company | Specified Quarter | 577,228 | 1,166,583 | (50.52 | ) | 534,700 | 7.95 | |||||||||||||||
| Cumulative | 3,455,151 | 2,877,923 | — | 3,311,828 | 4.33 | |||||||||||||||||
| Note: | “Operating revenue” represents the sum of interest income, fee and commission income, insurance income, gain on financial assets/liabilities at fair value through profit or loss and other operating income. |
2. Preliminary Operating Results of Kookmin Bank (Consolidated)
| (Won in millions, %) | 4Q 2020 | 3Q 2020 | % Change Increase (Decrease) (Q to Q) | 4Q 2019 | % Change (Y to Y) | |||||||||||||||||
Operating revenue | Specified Quarter | 6,987,024 | 4,000,617 | 74.65 | 3,194,040 | 118.75 | ||||||||||||||||
| Cumulative | 24,519,818 | 17,532,794 | — | 21,166,968 | 15.84 | |||||||||||||||||
Net operating profit | Specified Quarter | 503,510 | 911,296 | (44.75 | ) | 606,768 | (17.02 | ) | ||||||||||||||
| Cumulative | 3,151,137 | 2,647,627 | — | 3,328,119 | (5.32 | ) | ||||||||||||||||
Profit before income tax | Specified Quarter | 553,395 | 867,866 | (36.23 | ) | 594,036 | (6.84 | ) | ||||||||||||||
| Cumulative | 3,131,823 | 2,578,428 | — | 3,318,472 | (5.62 | ) | ||||||||||||||||
Profit for the period | Specified Quarter | 415,437 | 646,804 | (35.77 | ) | 432,358 | (3.91 | ) | ||||||||||||||
| Cumulative | 2,319,519 | 1,904,082 | — | 2,439,079 | (4.90 | ) | ||||||||||||||||
Profit attributable to shareholders of the parent company | Specified Quarter | 415,817 | 635,624 | (34.58 | ) | 432,358 | (3.83 | ) | ||||||||||||||
| Cumulative | 2,298,195 | 1,882,378 | — | 2,439,079 | (5.78 | ) | ||||||||||||||||
| Note: | “Operating revenue” represents the sum of interest income, fee and commission income, gain on financial assets/liabilities at fair value through profit or loss and other operating income. |
3. Preliminary Operating Results of KB Securities Co., Ltd. (“KB Securities”) (Consolidated)
| (Won in millions, %) | 4Q 2020 | 3Q 2020 | % Change Increase (Decrease) (Q to Q) | 4Q 2019 | % Change (Y to Y) | |||||||||||||||||
Operating revenue | Specified Quarter | 2,086,157 | 1,466,448 | 42.26 | 1,610,521 | 29.53 | ||||||||||||||||
| Cumulative | 9,999,213 | 7,913,056 | — | 8,088,988 | 23.62 | |||||||||||||||||
Net operating profit (loss) | Specified Quarter | 136,809 | 232,566 | (41.17 | ) | 66,630 | 105.33 | |||||||||||||||
| Cumulative | 578,796 | 441,987 | — | 360,468 | 60.57 | |||||||||||||||||
Profit (Loss) before income tax | Specified Quarter | 118,142 | 280,718 | (57.91 | ) | 64,023 | 84.53 | |||||||||||||||
| Cumulative | 593,236 | 475,094 | — | 398,557 | 48.85 | |||||||||||||||||
Profit (Loss) for the period | Specified Quarter | 88,701 | 208,448 | (57.45 | ) | 48,231 | 83.91 | |||||||||||||||
| Cumulative | 433,951 | 345,250 | — | 290,071 | 49.60 | |||||||||||||||||
Profit (Loss) attributable to shareholders of the parent company | Specified Quarter | 88,693 | 208,442 | (57.45 | ) | 48,229 | 83.90 | |||||||||||||||
| Cumulative | 433,926 | 345,233 | — | 290,057 | 49.60 | |||||||||||||||||
| Note: 1) | Based on KB Securities’ consolidated financial statements, as a result of which the figures differ from KB Securities’ earnings results to be released at KB Financial Group’s earnings conference for fiscal year 2020, which are based on KB Financial Group’s consolidated financial statements. |
| 2) | “Operating revenue” represents operating income based on KB Securities’ financial statements. |
Declaration of Cash Dividends by KB Financial Group
On February 4, 2021, the board of directors of KB Financial Group passed a resolution to declare a cash dividend of KRW1,770 per common share (total dividend amount: KRW689,652,772,950), subject to shareholder approval.
The record date is December 31, 2020, and in accordance with the Korean Commercial Code, the payment for such dividends is expected to be made within one month following shareholder approval at the annual general meeting of shareholders of KB Financial Group. The date of the annual meeting of shareholders of KB Financial Group will be decided and made publicly available upon the resolution of the board of directors of KB Financial Group to convene such meeting.
The contents of the above declaration remain subject to change pending the results of the audit by KB Financial Group’s independent auditors and the approval at the annual general meeting of shareholders.
The total number of common shares that are eligible for payment of dividends is 389,634,335 shares.
Declaration of Cash Dividends by Kookmin Bank
On February 3, 2021, the board of directors of Kookmin Bank, a wholly-owned subsidiary of KB Financial Group, passed a resolution to declare a cash dividend of KRW2,270 per common share (total dividend amount: KRW917,940,593,320), subject to shareholder approval.
The record date is December 31, 2020, and in accordance with the Korean Commercial Code, the payment for such dividends is expected to be made within one month following shareholder approval at the annual general meeting of shareholders of Kookmin Bank, which is expected to be held on March 25, 2021.
The entire dividend amount is to be paid to KB Financial Group, which holds all of the common shares of Kookmin Bank.
The contents of the above declaration remain subject to change pending the results of the audit by Kookmin Bank’s independent auditors and the approval at the annual general meeting of shareholders of Kookmin Bank.
Declaration of Cash Dividends by KB Securities
On February 3, 2021, the board of directors of KB Securities, a wholly-owned subsidiary of KB Financial Group, passed a resolution to declare a cash dividend of KRW435 per common share (total dividend amount: KRW130,000,000,000), subject to shareholder approval.
The record date is December 31, 2020, and in accordance with the Korean Commercial Code, the payment for such dividends is expected to be made within one month following shareholder approval at the annual general meeting of shareholders of KB Securities, which is expected to be held on March 24, 2021. The entire dividend amount is to be paid to KB Financial Group, which holds all of the common shares of KB Securities.
The contents of the above declaration remain subject to change pending the results of the audit by KB Securities’ independent auditors and the approval at the annual general meeting of shareholders of KB Securities.
Report of Change in Revenue or Profit of More than 15% (KB Financial Group)
On February 4, 2021, KB Financial Group reported changes in its revenue and profit as described below.
Key Details
| (Won in thousands) | FY 2020 | FY 2019 | Change (Amount) | Change (%) | ||||||||||||
Revenue and Profit | ||||||||||||||||
- Operating revenue | 55,623,822,626 | 47,169,681,811 | 8,454,140,815 | 17.92 | ||||||||||||
- Net operating profit | 4,615,992,565 | 4,490,648,813 | 125,343,752 | 2.79 | ||||||||||||
- Profit from continuing operations before income tax | 4,761,632,504 | 4,533,985,890 | 227,646,614 | 5.02 | ||||||||||||
- Profit for the period | 3,502,281,656 | 3,313,198,880 | 189,082,776 | 5.71 | ||||||||||||
Other Financial Data | ||||||||||||||||
- Total assets | 610,728,437,016 | 518,538,116,921 | ||||||||||||||
- Total liabilities | 567,366,978,246 | 479,418,791,876 | ||||||||||||||
- Total equity | 43,361,458,770 | 39,119,325,045 | ||||||||||||||
- Capital stock | 2,090,557,685 | 2,090,557,685 | ||||||||||||||
- Total equity / Capital stock ratio (%) | 2,074.2 | 1,871.2 | ||||||||||||||
| Note: 1) | The preliminary figures presented above are based on K-IFRS and are subject to change pending the results of the audit by KB Financial Group’s independent auditors. |
| 2) | “Operating revenue” represents the sum of interest income, fee and commission income, insurance income, gain on financial assets/liabilities at fair value through profit or loss and other operating income. |
| 3) | “Profit for the period” comprises the total profit for the period, including profit attributable to both controlling interests and non-controlling interests. |
Report of Change in Revenue or Profit of More than 15% (Kookmin Bank)
On February 4, 2021, KB Financial Group reported changes in the revenue and profit of Kookmin Bank as described below.
Key Details
| (Won in thousands) | FY 2020 | FY 2019 | Change (Amount) | Change (%) | ||||||||||||
Revenue and Profit | ||||||||||||||||
- Operating revenue | 24,519,819,514 | 21,166,968,392 | 3,352,851,122 | 15.84 | ||||||||||||
- Net operating profit | 3,151,136,692 | 3,328,119,497 | (176,982,805 | ) | (5.32 | ) | ||||||||||
- Profit from continuing operations before income tax | 3,131,822,441 | 3,318,472,709 | (186,650,268 | ) | (5.62 | ) | ||||||||||
- Profit for the period | 2,319,518,439 | 2,439,079,051 | (119,560,612 | ) | (4.90 | ) | ||||||||||
Other Financial Data | ||||||||||||||||
- Total assets | 438,444,114,262 | 387,425,038,232 | ||||||||||||||
- Total liabilities | 408,036,040,336 | 358,420,805,903 | ||||||||||||||
- Total equity | 30,408,073,926 | 29,004,232,329 | ||||||||||||||
- Capital stock | 2,021,895,580 | 2,021,895,580 | ||||||||||||||
- Total equity / Capital stock ratio (%) | 1,503.9 | 1,434.5 | ||||||||||||||
| Note: 1) | The preliminary figures presented above are based on K-IFRS and are subject to change pending the results of the audit by Kookmin Bank’s independent auditors. |
| 2) | “Operating revenue” represents the sum of interest income, fee and commission income, gain on financial assets/liabilities at fair value through profit and loss and other operating income. |
| 3) | “Profit for the period” comprises the total profit for the period, including profit attributable to both controlling interests and non-controlling interests. |
Report of Change in Revenue or Profit of More than 15% (KB Securities)
On February 4, 2021, KB Financial Group reported changes in the revenue and profit of KB Securities as described below.
Key Details
| (Won in thousands) | FY 2020 | FY 2019 | Change (Amount) | Change (%) | ||||||||||||
Revenue and Profit | ||||||||||||||||
- Operating revenue | 9,999,213,095 | 8,088,988,173 | 1,910,224,922 | 23.62 | ||||||||||||
- Net operating profit | 578,796,038 | 360,468,324 | 218,327,714 | 60.57 | ||||||||||||
- Profit from continuing operations before income tax | 593,236,070 | 398,556,837 | 194,679,233 | 48.85 | ||||||||||||
- Profit for the period | 433,951,364 | 290,071,004 | 143,880,360 | 49.60 | ||||||||||||
Other Financial Data | ||||||||||||||||
- Total assets | 57,558,666,553 | 47,763,650,588 | ||||||||||||||
- Total liabilities | 52,560,646,447 | 43,143,339,372 | ||||||||||||||
- Total equity | 4,998,020,106 | 4,620,311,216 | ||||||||||||||
- Capital stock | 1,493,102,120 | 1,493,102,120 | ||||||||||||||
- Total equity / Capital stock ratio (%) | 334.7 | 309.4 | ||||||||||||||
| Note: 1) | The preliminary figures presented above are based on K-IFRS and are subject to change pending the results of the audit by KB Securities’ independent auditors. |
| 2) | “Operating revenue” represents operating income based on KB Securities’ financial statements. |
| 3) | “Profit for the period” comprises the total profit for the period, including profit attributable to both controlling interests and non-controlling interests. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
KB Financial Group Inc. | ||||||
| (Registrant) | ||||||
| Date: February 4, 2021 | By: | /s/ Hwan-Ju Lee | ||||
| (Signature) | ||||||
| Name: Hwan-Ju Lee | ||||||
| Title: Senior Executive Vice President and Chief Finance Officer | ||||||
