Good afternoon. presentation I Financial Group. am Ki-Hwan Joo, you joining, CFO for KBFG’s earnings for XXXX. Thank QX of KB
financial an on volatilities fell last operational as Due into and on market to steep moving look business pandemic, for COVID-XX was KBFG’s year’s to let’s contraction environment results, Before briefly unprecedented earnings global high back the key the and year with results. our well. real XXXX economy
For industry, in surrounding the to meaningful price share basis the bring profitability card; from Life, impact, our low, of life challenges solid XX which portfolio, rate its such our able COVID-XX external once Notwithstanding were results insurance, continued and top-tier declines. prolonging business in the competitiveness. subsidiary. possibility and there at life gain company, in us the which was rate Prudential asset insurance, concerns since lead Last enabled credit insurer securities, became banking with fall non-life August, internal point quality completed with greater industry’s to by cut KBFG to to finally, BOK, and be deteriorations historical policy We bank, XXXX. ranging over
completed Bank, of institution, which We into financing also Indonesian Bukopin acquisition market. Cambodia’s will and foothold Prasac micro biggest the be a
progress made our business enhanced global significant we in sustainability. As group such, towards and further the
profit DPS and has inorganic from of leading we fees the sizable contraction performance, interest net we XX% balanced X,XXX M&As drove meeting following business. for in Today, uncertainties, BOD and and NIM sustained year. as non-banking a rate and tangible net in continue which as commission decided subsidiaries, X.X KRW growth financial by increases as of of growth, bank saw driven ratio despite well on income, results through trillion sustain to fundamentals. this terms earnings our of loan In across solid improvement to macro the around non-bank continuation brought Also, solid income payout cut increase
of COVID-XX real As compared capital payout abroad, prolonged against are mindful supportive for slimmed has the we required. and we uncertainties are home been possible Hence, to last macro depression and believe measures conservative economy management at economic and impact year. somewhat
underpinned standard. earnings be we various capital so commit and dividend policy abide shareholder continue we’ve progressive solid that to at we that However, by up of forefront will done resilience industry’s the global implementing live adequacy, top return by the will yet far. as to And again policies
ESG have are you will low by around will changing all market become economy new entering fast. and capabilities, is rise KB upgrade portfolio. pre-emptively, base Korean to distinct financial based channel business competitiveness, respond group’s leadership; Financial on our characterized a Group is business global environment XXXX. KB’s number E, each And As changing world-class services named one aware, business; In superior XXXX, platform; end, one culture. we and and and i.e., abroad, financial stand RENEW platform and core; W, one as direction At new N, of Renew that businesses, financial challenging financial via become strengthen E, strategic businesses platform through growth was to future. for expansion competitiveness the maintained reinforced traditional this company. financial this services robust move we full of R, lines was growth engine net home year-on-year growth of X,XXX.X normal, so ultra-low year and growth. profit health now to our will and customer customized there driven a billion. To as number of of highlights top on I core Despite secure financial financial And paradigm and year’s that, will rate financial With for Also, growth financial of KRW talent we same X.X% To inorganic auto, time, for core care XXXX tangible we’ll from underpinning and real the we environment results differentiated KBFG’s data. earnings group. on of as solid and comprehensive company M&As, estate offers number business, we solutions by earnings to XXXX. the bolster at the that non-financial business fundamentals. products will for
QX Q-on-Q to KRW billion. profit down XXX.X was However, significantly net
And back and quarter. of the previous of Prudential related goodwill negative benefit booking the base On from expenses provisionings additional effect Life COVID-XX. ERP to from
flat Excluding these was on factors, one-off net profit QX on quarter. basis, a recurring
the in and back card Group’s base which M&As. of savings the stable XXX.X marketing billion, billion. XXX.X from commission through and income core year-on-year Continuing result to a growth. breakdown. This details and KRW Such cost net despite X.X% support earnings the was secure big solid of from by growth inorganic income business, falling or trend was helped performances X,XXX.X better income to credit KRW to of net efforts, subsidiaries. QX XXXX increase bank’s non-bank fees group’s is led billion, fee on securities to to up Moving due comprised by mostly income XXX brokerage stable Meanwhile, robust XXXX growth net net was fee driven providing which loan year, is on KRW interest commission XX.X% on commission year. more higher all Also, growth, fee on rates. billion KRW a and and of up growth earnings KRW sizable income and billion X,XXX.X
was fee flat Although due and net fee the to average lower quarterly XXX an to in commission Securities the KRW around and the since. but be used fee increase XXX trend business on income income transaction beginning volume, card total volumes to be around billion, income of slightly started commission up declined card driving year-end to since fee trading expand up, year income Size sustained credit to has Q-on-Q. billion KRW and ever credit of
rate impact for expense increase performance there assets invested of around insurance year-end coming and income diversification. deterioration KRW than in in operating cold weather from including that, driven expenses loss i.e., billion derivatives, at market was and XXXX, claims of deposit share quarter. profit. and as other depreciation medical the securities, leases. the But such is credit of for favorable operating seasonality and which lower meaningful price backdrop improvements on there was efforts and QX, businesses, in insurance level said portfolio previous from other insurance operating in seen the mainly a for FX, core that ratio the long-term Having In loss XXX.X and financial Next other on with increase wave and constrained of we’ve operating by operating group, other auto and increase
was the which additional billion. on KRW statement, of significant consolidation expense This the group’s I is reported one-off ERP KRW X.X% year-on-year. M&A this and this X,XXX year. billion, September. mentioned impact of with the if of was and growing Prasac, was the expense XXX And Indonesia XXXX expense. of ERP as Next as And Prudential was billion again, G&A as financial expense. there on ERP the Group’s recognized, up group, once well Life a around with billion factors G&A there may to KRW which due increase of was the X% basis, KRW on for year, Bukopin subsidiary was the like XXX G&A year. approximately ERP X,XXX.X around other consolidated special as But G&A into Bukopin expense, expense pushing impact, expense is expenses as QX Bank seem we increase rise and The size seasonal recurring sizable Bank, a exclude Q-on-Q. a before, from
reported X,XXX.X XXX the Next arising from provision quarter. order XXX.X for as is Group’s also during billion billion, counter to well. KRW second KRW And KRW PCL made we up COVID-XX, of have provisioning pre-emptively KRW XXXX on quarter this billion added of XXX PCL, provisioning credit billion year-on-year. for we In loss. uncertainties
XXX KRW As this pre-emptively, is such, since this out, flat is provisioning year, additional impact if we billion trend of set the taken year-on-year. aside
the KRW was of XX.X and only of as to was sale as bank Q-on-Q. were KRW related specialty provisioning, For bonds, billion Despite quarter, fourth additional there XXX.X explained, increase loans the billion. write-backs – write-back PCL
on key is Next financial indicators.
see the can on the ROA group ROE top side. You left-hand and
industry, would supplementary you hybrid equity, that from mention ROCE, on ROE is of like the this drop inform there capital, quarter, of the is recognized I which KBFG’s indicators. centering would Taking a supplementary of as trend slight like Y-o-Y. consideration, XXXX, posted has go and issuance on overall to ROE common indicator capital. also been based increasing excluding is on global is further, effects I which profitability our Before to we is these the profitability return common into equity, there X.XX%, a bonds, in that which factors
to COVID-XX, fall even the rate, steady inorganic difficult growth. stands with in being one-offs, of maintained ERP XX.XX% excluding increase However, as the costs the group’s and core a and profit real preemptive environment in related preemptive including is in the provisioning result provisioning and and stably profitability economy the ROE a the level, at a operating downturn interest recurring it
comment like in on loans bank’s the to I growth. would Next, won
to in end YTD increased X.X% XXX household balanced by end it and KRW based posted of X.X% corporate As compared loans XXXX, won and on and qualitative bank’s of trillion September. growth
year, was compared loans, was centering Looking loans fund Jeonse loans, due growth case growth there than even an case redemption of COVID-XX. at to corporate the was and and growth YTD the breakdown, of increase to of X.X% a SME sound prime financial XXXX, there of planned loans, increase at the YTD. September. leading grew was the the with In unsecured X.X% of initially the large loans loans growth household support large there on September, late loans, decrease. government’s end to X.X% in of a XX.X% and the with aid debt corp to an Compared of and growth late SOHO, In corp demand was faster and
centered appropriate into we such loan take and year, However, this and on qualitative plan to situation focus as and profitability household quality an circumstances and managed from economic growth debt factors level. asset at growth consideration
and a in respectively, bank’s continued interest the rate strict particular, case Group following as X.XX% and management result each margin contraction NIM. of X.XX%, the situation asset where NIM X a efforts, of Q-o-Q. in in XXXX, NIM it QX, Bank decline In yield time posted burden our in bp were the is sizable improved Next result a NIM. funding on of deposits, of X approximately the on centering trillion quarter growth relieved. profitability, this the relatively deposits loan funding the we and decrease our as overall was selective And with able of to focusing cost safeguard growth, from well side, core KRW even
deposits the contraction from rate interest However, affected decline since in cut, rate both a was we a Y-o-Y. basis, group the continue NIM by will and core sales the there effect interest increasing And make yearly efforts by our loan bank portfolio a that on great manage expect competitiveness a for channel based operate pricing. we while, and all on on and will our profitability advanced our based superior to apply NIM focusing loan and capability
to go of despite on page. previous one- the to will past CIR X increase, now group’s CIR, elaborate generation, off it revenue particular, has the overall cutting the and level next result as cost- XX.X% a one-offs, downwardly the cost at And income expansion group’s and the years, cost ERP year’s XX.X%. excluding I thanks the group-wide level. for ratio. been stood posted our M&A-related Let’s XXXX steadily, efforts. In maintained improved stabilizing
But Y-o-Y. at a costs, is asset just quality. COVID-XX, credit excluding group to there stable becoming result there in about X.XX%. being on And Next, remark a cost concerns a XXXX managed are still cost X.XX% stands prolonged, With slight credit and like COVID-XX increase of to as level. level the increasing credit would was ratio. at provisioning preemptive The this, posted related I the
sophisticated a are vulnerable to managed we industries borrowers prepare management at system to by believe order provisioned and quality time, different improve be in we strengthening or having risk we have same stably. our and and to by capability borrowers a on for these However, that monitoring for the buffer. management preemptively for additionally to secure respond, asset uncertainties conservatively thus, And will risk focusing and our
ratio. BIS group’s the is Next
including in posted still XXXX, increase the asset net December financial bonds, the ratio the a highest adequacy we growth, XX.XX%, Despite increase the solid BIS capital industry. of end of level the of strategic of risk-weighted XX.XX%. posted back on Korean profit group’s dividend and As and maintaining management, ratio CETX and the hybrid capital loan are year-end issuance following
essential as the In a environmental like the has would that XXXX financial particular, establish strategy changes the Way let’s preemptively From year, KBFG among disasters, the trust COVID-XX ESG core time which management friendly management last will and a change step page. to strategies. pronounced. create value a more been road and to ESG’s importance of core the in newly I of management Now mid- crisis Green a Around responsible go Korean change, and to to and value governance XXXX natural ESG to sustainability. is ESG set XXXX, leadership, financial to becoming these map. an which management page, secure of established corporate to next become promoting globe, companies green secure both the by also the of KBFG, strategy due will has long-term this for ESG of including sustainable ecosystem. the ESG enhance Green with change lead the commitment as institution, BOD. cover disseminating globally committee regarding crisis and for KB more KBFG’s Way ESG environmental climate the and one environment sense leadership, heightened ahead always March environmentally of respond within first May holds KB management committee and goal customer in The strategic management healthy society a and
XX%, Equator to efforts of finance step core KB’s capability. others which ESG that and on time reducing philosophy publicly for by XX emissions investment with and at exiting to group financing, providing the first announced and we Korean this membership showcased we as carbon global XXXX our a to KRW at compare friendly the are ESG XXXX, the goal when financial commitment speedy this, about and size loan that have to our XXXX group’s the level execution sales, August, in And are level we focusing compared have year. completing We environmentally our expand higher September, our in product trillion management in XXXX. for guideline a and is than Keeping have Principles, the declared stands financial a coal proving we by
Group, KB and factors Force risk the managing Financial forward, climate-related are related Going TCFD, disclosing Task of Financial are Climate-Related Disclosures, recommendation transparently. following on information various
covered. or other highest climate the recognized refer this, also ESG as faithfully in hard society all we working were Corporate Korea all step we new innovative company, from grade results. results for conclude companies, On establishing have in and have the management corporate change utmost step. system Q A+ strengthened roles smart ESG results social recommendations you just great Last government we advanced With are and KCGS, receiving institution. area and are schools our to for green Korea listening. efforts. that core the that and I ESG, achieved TCFD KBFG’s are a least, Thank will in do a implement Please create promise values. response presentation. the by leading And and pages for energy hand, We support regarding recently, environment, to Korean projects details but responsibility differentiated growth categories, deal time and our XXXX We we structure. for the By as Korean the business leadership green of befit the including – our - financial Governance we financial exert including management government’s Service, not fulfilling business status that participating a actively to will first following I our
