KB - Earnings call transcript Q3 2021 | KB Financial Group Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Peter Kweon

Greetings. I am Peter Kweon, Head of IR at KB Financial Group.

We will now begin the 2021 Q3 Business Results Presentation, and thank you for your participation today.

We have here with us our group CFO and SEVP, Lee Hwan Ju, and other executives from the group.

We will first have CFO and SEVP, Lee Hwan Ju, walk us through the 2021 Q3 major highlights and then have a Q&A session after the presentation. invite to to QX the like presentation. would our deliver SEVP XXXX I

Hwan Ju Lee

am CFO XXXX Hwan Group. afternoon. Lee Good I Ju, for KBFG's Presentation. Thank joining of Third Release Quarter Earnings you Financial KB

time rate presenting for and overall backdrop XX recovery deepening BOK the in trend financial the you light economy the domestic policy August, operational earnings, will imbalance, first. I Before brief by on and points on of in first Last XX basis of company months. inflationary hiked pressure

financial a asset risk solid, risk Under underpinned is management framework. our fine-tuned required as and Following hike Also, in by support as on with quality management Hence, undermine improvement year. banking by enter very the and there part that tech tapering the in end for delta there adding And competitiveness. peak months, more NIM external of there the sector let this authorities separate of Also, early may the backdrop, But are has and institutions. around rigorous a asset more all, variant of me is hike backdrop the in six the concern spread another by may and of rate internal management seem the the up. temporarily. quality. growing out sector. which policy incumbent SMEs financial COVID-XX U.S., business, expectations manufacturing products, harmed deterioration assure may in rate positive business that in on over small before momentum both extended drove, possibility of and merchants doesn't concerns program share rise prices, pandemic financial be All you operational the of economic is financial been the though sales big uncertainties, a is KB's

support program. management a cannot preclude has crisis asset retrospective is as solid if completely even chance characteristics, one quality of However, quite financial business

set monitoring and order fully we impacted and Also, are last up strengthened creditworthiness sector negative So the buffer loan preemptively from securing in made deteriorating and impact policies billion highly risks. for have up who the assets around borrowers to on in set year, comprehensive sectors to prepare plan to for provisioning, additional prone the KRWXXX pandemic we level, counter sufficient COVID in group future. uncertainties at potential for

with financial support, even we there of So quality in a of drop a cost. in or end the limited be will sudden believe credit surge the chance asset

data, management, for to i.e., the fully retail, are the super based asset of year analysis on to this in-depth the launched implemented fully comprehensive which our loved transform trend group, competitiveness in most customers back Bank, our is the partnership which KB and number on by of services, own which in elaborate, service up the customer will channel. management leveraging off-line under be and MyData scattered which data financial a will Also and X.X, platform personalized. we pandemic, corporate provide profile to expand Next, into PG, fits reflecting by further of that away notch July, one beef one the channel, legacy touch wealth speeding to transformation for size financial transactions, expanded point off-line environment up is platform, and COVID-XX business-centric, customer our one on customers. system accentuate KB digital last an short and is all core is moving competitiveness To financial our for and model branch innovative services from up branch

competitiveness So providing our unique as to complete by the cutting services. off-line across omnichannel through both and and channel on seamless

last more one convenience KB that Star number as KB will we financial platform perspective the Star forward may Banking from Also KB XXXX. initiative, and slides. from and in showcase Target to target provide net enhancements will carbon for Partnership board zero SBTi, so PCAF, following the S-T-A-R, S.T.A.R., our Accounting leap made emission on by Financials, for Net adopted Zero Banking to also and which Science-based manner platform, short a user details platform. a disclosing declared transparent Carbon seeking is We asset June, KB I portfolio group's new in

setting. more target science-based the near were This strategy to of have to carbon and XXth reduction is on global the KBFG's has declaration carbon-neutral On in and S.T.A.R. been rigorous financial the objectivity SBTi month, reduction domestic of regional Net first Asia Zero and meaningful target. approval receive that company than we was a proven standard through company KB carbon

With towards setting, will will provide companies a the and and management. for investment continue green global to strong to support we various target under order as continuously reduction we SBTi which prerequisite is different collaborate in completed to initiatives ESG drive approval, carbon neutrality, emissions

net as and our XXXX Now, quarter profit one-off with interest and third let you end up me was the of XXXX Net Heavy one-off net walk KRWX,XXX procedure fees solid after income well of commissions through net provisioning net provisions, recurring of reversal reversal and KRWX,XXX.X results. X.X% Hanjin KBFG's factors, base was on workout as income the including QX business in the growth effect. around reported of billion Except related a Insurance's Q-over-Q. profit other and QX ERP basis profit billion. KB for the

profit, and drove expanding basis company-wide up cumulative profit we solidified QX, growth environment, to year-over-year. was efforts. profit through cost Despite each profit business XX.X% model net In core of control and revenue business of trend and Solid internal difficult core line, operational business source which portfolio external KRWX,XXX.X continued, diversified thanks up all billion. M&As,

us segments detail. more each take in the look Let of now at a

KRWXXX.X billion from KRWXXX.X from for M&As, Q-on-Q. interest and KB sound decline the loss KRWX,XXX.X in up higher slowing to greater QX ratio due and insurance back also improvement, in compared nonbank other as bank which fee which fees third to its trading securities Third improvement. Bank's loan interest also and of posted our X.X% expanded up profit seasonality it including cumulative derivatives was was sustaining to loss NIM rise billion, contribution X.X% This the income. lower the rate is was income and driving won commission XX.X% the FX and improvement from securities income merchant IB volume, net and fees growth previous And Life. the by in of commission interest Prudential translation Also, A on fee higher FX. credit of the securities the operating led income to year, subsidiaries' IB IB net billion, business an quarter year. year-over-year And despite and an was business, led driven increase. consolidation stock card growth. to which reported from the up is Prudential around cumulative QX, sustained billion, of in a which as improvement billion, income improving Life gains KRWXXX.X KRWXXX.X group, business nonbank increased, effect lower up rates securities, trust income of redemption led as QX, reported interest to KRWX,XXX.X in increase from Thanks around account in guarantee new growth income subsidiary and business XX.X% of and market payment billion, business well performance early income which trust year-over-year. was which income on well of the or to ELS trend. in net fee Bank's P&C is sales. as volume, sizable and on reserving quarter stock bank volatility, in greater

this the ERP from was of the KRWX,XXX.X from eliminated Next though QX Q-on-Q consolidation with KRWX,XXX.X G&A that at M&A steady the which is dip. group a of was business. from basis, kept KB slight factors, like is on factors, to marginal induced seasonal reported due a G&A reported the group's and the On billion, billion the ERP effect G&A cumulative a expense; G&A looks there impact third a state. Insurance insurance and quarter Apart year-over-year increase is these as but expense taxes

level. posted a prime losses Next losses; drop losses COVID-XX maintaining for X.XX% assets provision was QX provisioning KRWXXX.X is despite and and And credit centering credit of billion. a billion loan and continued basis, reversal cumulative it billion result on KRWXXX.X at on related prime the safe and was quality well KRWXXX.X is as management previous in assets provision sound growth a losses credit of asset Heavy, QX billion, KRWXX fading additional credit around This for growth the Hanjin qualitative qualitative of asset loan quality. of Y-o-Y. posted low for provision related a credit efforts cost posted it year. On away managed centering with increase as of provision for QX to to

the cumulative M&As a profit nonorganic market for net Looking graph level. each market status in XX.X% in heightening result on basis Indonesia. level competitiveness IB [ph] and and acquisition and a profit in Securities bottom to also engine contribution including bank was of insurance sales the models expanding group's the by Cambodia Valbury securing secure upcoming QX through of market stability nonbanking business capabilities is KB, is domestic Asia, has growth right, in XXXX, in the to through and investment thus hub on XXX% order limitations at financial in and capital in the and growth advanced area. and bank recorded a securities a in The secured the sustainable This market. Southeast profit and sales of of industry expanding business is the strengthening recently with the the overcome product Singapore heightening its global areas in core in generation shares

the XXXX and and And QX been Going into of profit enhance dominance respectively. forward, has consideration the the over will management achieved financial I XX.XX%, back continuously recorded fundamentals basis go sound based asset page, in major maintaining competitiveness corporate core cumulative indicators. we and growth quality conservative the on and our ROE, market global it and ROE, is group's From posted next value. income will results the X.XX% on that profitability. domestically, our and taking XX.XX% recurring and the group, ROA expand and

bank's recovery loans in XXXX, September YTD and loans loans Prime end SME detail, trend, substantially a end to as solid like In and large X.X% household compared on compared by trillion, case continued to X.X% on the Next, Unsecured X.X% Jeonse corporate posted SME cover has growth I would rose centering won respectively. and to X.X% SOHO economic growth. In driven at at Bank's stably Prime loans X.X% Q-o-Q X.X% and following activity won increased of of loans loans companies, increased June. and KRWXXX loans increase, June. in and grew centering loans, demand corporate grew end

of posted repricing effect, rate the interest last selective margin. year's basis and increase point QX profitability and following funding managed net is improvement Despite pricing a result big loan which efforts. X.XX%, was X last asset NIM policy sophisticated Next interest cut, bank this ended a XXXX Q-o-Q. year

hand, On growth, with the Q-o-Q. NIM card bank group other in card of back basis the contracted. funding burden on the NIM asset the of NIM, point it But X rose improvement, following case increase

forward, And best to KB, low-cost core on corporate asset improve our Going on and NIM appropriate as accounts focus settlement and much management interest on based flexible will will possible. as margin profitability rate deposits, and based channel expanding secure quality, competitiveness, strong our including it deposits. through do

continuing. group's result go is Let's ratio. cost increase income a as like to our management CIR a efforts, I downward And core XXXX next posted CIR continuous group XX.X%. solid QX the cumulative would cost to and income stability page. trend of cover

posted into seeing that Excluding one-off efficiency from including XX% taking becoming we trend improvement are others, level. is cost factors, CIR recurring realized. effect the costs, And ERP account more a additionally

the of the asset out following sound conclusion And Hanjin quarter, COVID-XX is billion QX And the would respectively. XXXX management X.XX% proven. managed CCR. like respectively. worked cover Industries cost and capability a excluding cumulative this of situation, being stably quality even X.XX% low and reversal level I X.XX%, for credit X.XX% posted is Even provision Heavy for and of on crisis around in group loan credit ratio, KRWXX the basis, to each it still X.XX%, cost a cost at in maintained group credit bank being QX Next, losses QX. in

increasing. prolongation With the is various and quality programs financial hike, of over additional BOK interest of the COVID-XX-related support rate possibility concerns asset

since well. stably as asset expect exposure, these for and However, future we are the to nonviable in are preemptively management strengthening potential possibilities since we for manage we preparing quality more

capital growth, loan solid increase. and CETX industry. Next, I valuations ratio. and ratio group assets Q-o-Q, XX.XX%, would securities a from capital respectively, on bps of improvement possible cover Despite the substantial in and through is group's income as buffer higher the capital XXXX BIS end respectively, gain factors such XX this the XX.XX% recorded risk-weighted September bps and through was X highest of to posted financial generation like net back level ratio maintaining and

Along page, is KB to now operations, month. Let's KB Banking to pandemic, this and transformation platform, content important the digitalization has is due from customers' From to marketing. ahead and competition becoming been within reinforcing solidify all-around Financial the has that the points would transactions competitiveness top-tier digital Star like step be representative status market pronounced to the one with encompassing go digital needs companies will end of by Financial financial Group's at this and financial perspective, next which Tosbank's we we group's I acceleration page. changes, pain these industry. more online forward, digital explain of major newly focusing Bank been as about platform, deepening driving the an of listing the of in with the platforms. financial of And the aim opening responding Group, platform KB and Kakao going with COVID-XX launching on

KB, the strengthen core group's KB's As Star service number of unique from most Banking, is convenience a platform, starting these beloved part financial KB aims customers. of perspective and and platform through with by customers' the competitiveness integrating comprehensive to boldly one become reconfiguring the which efforts,

platform not and an through aware, service. this time can group's strengthening fast aforementioned. subsidiaries, so to well is and The To KB's I that a time customer customer strong engagement and and long the killer you the customers new aim can browser, first, will and be external will in-app secure And explain service KB safe database we value based make XTs, we personalization the customers platform app. also It to comprehensive a Banking visit by a develop strengthen for implementing that which mobile establish platform, an diverse use encompass one As in often. only to platform stay detail, the including basis, convenience, each core methods to as infrastructure, are more enhances services content which is The subsidiary as channels. by KB it secure transaction. on offering we the succeed the many expandable factors customer deliver core rule, Star financial essence and for hub through offers that of and Mobile optimized KB expandable Group or sharing and platform such but Certification expect own applying XTs Financial traffic,

the subsidiaries, utilize KB Going and application service insurance attrition. internalizing related simple services and stock additional securities, Card, we core beyond focusing could analysis without aim KB inquiries fully establish claims or ecosystem Pay, and of KB or including through to a insurance on app transactions, representative services coverage that

future in customer's improve platform to external private to Hometax public life the platform. connects and connect including a basis, provide also and will convenience within the and expand seamlessly institutions the in with user alliance We channels, GovernmentXX flexible and will which customer

more There there MyPage and Star machine banking more personalized Mydata Banking if expansion analysis, implemented be asset in others. or personalization and is provide duration service segmented sophisticated but the speed basis, data learning and the which based is even customers utilizing Secondly, services. affect future. through and methods, expandable And customer and since, least, for including channel we meaningful AI, continued home sophisticated and on not service management service, KB service, does new is not stability. Last through an develop will screen open content will

partner beloved Estate to KB, with lifetime occur, Page expect Liiv the in a lives most Single complete Even transactions well this, through competitiveness, there connection banking With the Healthcare customers' greatly through increase From detailed great Real page, screen forward. of financial optimized going I nonfinancial be that system, find will for just naturally transaction from and performance materials please infrastructure mobile technology, will finance which platforms, as the the will establishing platform aforementioned. speed. we the application transition and that stability essential our KB's when Apart of as in Application, flexible including unique errors become next new SPA, improved. connects a be related [ph] and

if results will Financial business conclude So please it Group. my QX presentation refer needed. of to for this, KB I XXXX With

Peter Kweon

Hanwha Ha First your [Operator questions. from Please Kim. go Instructions] question Securities, with Do ahead

Do Ha Kim

impact full fledge like rather ask think loans. a I the happy think that you. thank the terms cost. at Do bigger rise interest in Well, Basically, margin I of in up out the on rebound will there would to impact even the funding First, play two you figure of the in we're questions figure, see in -- improvement in and QX that you you did to QX, go impact income, look slightly. of stand-alone because than NIS was if the

improvement like to fourth whether in a years, has second become to insurance, subsidiary to of it into your would conducted credit is actually M&As. card, be I the the So multiple many And going very is much understand profitability question quarter? like number P&C, diversified. capital translated regards portfolio you've over with higher My seems margin

Now capacity leverage significant you then capital every of per year, M&A shares. terms of generating that buyback of in making KRWX annum, shares understand or or cancellation like this how would you're best earnings to going of this be could investment to going or I off of trillion abroad

of So the plans what your regarding of the are capital? use some

Hwan Ju Lee

Kim, the question Do Thank questions. NIM. I you, Ms. to respond the on for Ha will

on Executive Regarding M&A, VP, M&A. our will question Chang Senior a respond Lee, Kwon

Q-on-Q on point we If basis saw you look at the X profile quarter increase. basis, NIM a

In terms very guess, policy had selective -- investment, I a we we've loans. of on

bring yield And about -- were went up. improvement loans, investment household able securities also on make on in to So we spread.

NIM. improvement in So that that also drove

funding cost, with had on deposits. We in increase around On core really the KRWX.X expanding low we focused trillion funding deposit costs. the

was in Now August, rate there interest hike.

rate short-term surged. really So

So MDA really the significantly. quite improved

So there NIM. -- was ceiling there improvement on a was a limit on the on the

Now, look basis that of accurate. the at points; a point if the but two quite you you increase there's basis X.X round up or round nominal been improvement basis, down, that if be to fractional

you look respectively, on basis, at Now if and a NIM, X.XX%. cumulative bank's X.XX% is

compared year's group the basis the so NIM, there's points for a to bank. both been And the improvement previous X and

we continuously cut, there focused net well last centric very basis were environment of Now policies policies. asset line deposit, it for and able year, really defend XX to on bottom a margin, a difficult we a our to us core big was but management lending point was and grow as our interest as

of terms landscape, In NIM the rate asset is and with improve impact we to gradually outlook. hike loan-to-deposit in the the also more and alleviated following NIM well now on households the competitive improvement fourth August quarter, with continue the regulations Starting as as interest trend. spread gradual the loans to expect being repricing seen on

expansion NIM think following come rate be we quarter assume half a trend, year. that year, full-fledged this think there X improvement of up meaningful year's However, then will year, this November hikes, will year, play we next we Including NIM. if into first that more next of and from will first be next to in there

presentation, deposits. introducing and on on be we growth company focused very much the settlement conservative government's comply this loan will a loans. during limit unsecured regulation with account will profit-centric but the mentioned we I've and as company's very prime well increase also, under as approach, we the Our core And aggregate is policies, a lending

and manage sure we from profit low-cost to the be appropriate believe a businesses. really make level these that are of aspect, we funding will get profit we and deposits, on that these our So able

Chang Kwon Lee

from Lee great Group. CSO, a for KB Kwon you Financial question. Chan am much Thank I very

any capital whether forward. and going plans have M&As further In terms for of plan we

from investment Bukopin acquired Prudential and Life, you made acquired we've well. we KB, As Cambodia's as also into Indonesia know, and PRASAC Bank Bank

So there mega deals were for us.

across these rather and So subsidiary. than organization on being, for our will we stabilizing M&A, into maximizing the another time entering more really entities on synergies focus focus acquired

with after If XX% our mean target the value M&A that that as our definitely of size. doesn't we corporate project, efficiency and and give group, the If level whether the sector good are we assets on any is that post-acquisition, could making but won't focus, are well up ROIC at growing go could that strategic opportunities M&A just aspect will some we to ahead is an of capital close of as for. as possibilities. of whether value look completely at with we were KB, would look well we the the good we different We help that synergies that in So with we're attractiveness company the assess would the look there potentials the the and think what to And focus as can us fit company. decision.

to market same be will we and look the there look this be must companies. well those in environment. industry, for At your growth as trend geographies investments the a answers influence. time, fintech counter companies innovative those and aspects environment regulatory potentially is to factors could technology and we into will considered. high at investing venture order we I hope global will financial financial companies if opportunities good as and in different So expand at considered. look All in further the think question. potential, aspects also upcoming at the our global Also, is risk you But where market, where sovereign there we market,

Hwan Ju Lee

of thing area And in I interested is would think in. I also policy shareholder analysts terms an like other more quite that One return. our dividend-related question add to are

that and payout quarterly have to to topics well payment respect think also that bit quite question. you interim With or I So respond share of buyback, are if I as a interest as X may regular ratio making those in. the more

topics. of all you've those So me since just return, shareholder mentioned cover let

the payout, we regulatory the in this year's and there is call COVID would a There although all, change during dividend we direction place. pandemic have authorities. respect progressive now valid. occasions, the -- on be this With still policy, first that to no is policy in I mentioned is of our approach. can't consider numerous of also that we So, I've definitive, earnings And

in but which macroeconomic decision at this the of of believe be this We that. point. problem ratio not we to as significant there based is payout we made will that Our XX%, level, think long a mentioned Normalizing as changes, is no off XX%. QX, pre-COVID is big level,

hold know, X% treasury shares. you As we currently

than And And our XX% that of to a the higher significantly ratio as meaningful there ratio. be payout DPS payout some be because the has size previous so actual believe basis, profit could well. on we actually increased will compared year, increase

In know in yet terms Shinhan has Holdings as well. done expect for quarter quarterly disclosed I in payout of third there payout, will dividend QX, the be and but not they we have the quarter, third a

As you the we dividend. know, year, out company, setup first paid for this the interim since the time of

well above decision. between Relating Over dividend will this of our our the But interest sure of due to We we or to we shares, always payout that In terms able able the be such we as and cancellation. had being the share regular, is our of have market we to from such be of in years, and making point. we this improve terms macroeconomic communicating this But canceling we of from those that share were quarterly approach. and and global factors we year-end shares more the advanced share provided. guess, it's give and buyback, the based paying in think year the will to after a answer not that short-term that decision. with buyback uncertainties concrete investors, we transparent believe return sure market we is backdrop this companies after a stick in decision still a in light in that light a total the specify to that shareholder impact about perspective. on make the considered prolonged, regulator, what difficult the to many dividend shareholders. had pandemic with provide dividend we KBFG and In policy, potentially match year, shareholder you shareholder have COVID communication relation what the position our And final as of we've more make economic mix of to cancellation return yet on feedback dividend our get and will return, of of with and made in trends further payout ways line making hard and off under to will

capital we in the want return invest the In to we effort forefront and very at sure make responding use terms are the expectations policy, shareholders. the of much market to of and we and shareholder of

Peter Kweon

will from next question take Jin-Sang. We the Securities, Kim Hyundai

Jin-Sang Kim

I on Congratulations earnings. your questions. two have

First that cannot and basis the about you aggregate already limitations government mentioned on something the question is limit, about have we loan risk. ignore regulation

adjustments Going lag one step next small the rate year. risk support have further, be merchants regulation for could until we could for that be borrowers or could loss could the merchants. there There sharing it could COVID-XX, interest get stronger for those or or a borrowers. and Because of

risk. also saying that are we real have some And could estate

think concerns So I some over could be there this. that

related investors, about this increase going So ask XX% to how you're see respond? are can executives profit, at we to that we this and the what the profit ideal single to is the base, because more rates regulation your for continue. risk, looking thoughts Secondly, of can year's digit, the hand, that trend high on than a results. on digit But other one

COVID-XX impairment. For even they or profits and and an improvement I reversed. effect picked be the can costs, next credit time, visibly the that And year, the improve decrease NIM that NIM regarding But can be provisioning have and could your out. can at asset think well,

are what tell this? What happen? can us thoughts what measures. you preemptive your So is thought on can So about your any process? And

Peter Kweon

insightful questions. much very you your Thank for

answer soon will them. We

Unidentified Company Representative

I your questions. is Bank. [indiscernible]. name for Jin-Sang of Kim My you the am CFO Thank the

as why other of we household It I regulation thinks the some announce about many believe risk I You That everybody have will do and And the substantial to changes household is appropriate asked certain aware risk have have potential the the in limiting when be household Korean I believe because economy. a that media, economic and of other for month, overburden is need U.S. experts limits. that policy that uncertainties saying could government we next a you are And are to household risk we loan loans. measures. think tapering probably could changes about for that And intervention there loans. increase, some the and that management. if

going by And at pursuing X.X%. to will September, others, loans and to asset And we there or quality will decrease mortgage and to side, and and limit suddenly, household the loan order we the the conservative be was will of loans, support is quality. to loans there pursue balloon that growth interest have for the On for of KB, the of it case the risks. bank us and a if so think there underwriting will limit adhering actual Jeonse the demand rate provide first important have is the increase aggregate there or asset And cycle, of was until At we And profitability other the for continue, we competitors. control policies. see be loan in effect when strengthening based forefront, In always DSR. part what forward, X.X% growth accordingly. year, was and there this profitability of end on could

will household side, the KB continue As if do. types regulations of mentioned, what in this you've these

process, see core loans, we underwriting have and improved business differentiated we also because through we household rather our the case be marketing and opportunities. focused, this businesses, more that we in and customer bank's loans, of we reorganized, technologies the online. was our measures management. for And alleviate and of the do capital be for And will more credit And Going forward, on household focus additional that area corporates than we the direction. having we we to COVID-XX, structure and of moving differentiator. future advancement want reorganization or believe, in working well. and for the for can will After so more large will or will automation are WN performance in that others, I as HR our growth that -- believe pursue burden and And be

full-fledged companies, marketing or we up and is in HQ household for it. the industries. make to SMEs we new deal if for industrial is the government revolution are So lagging seeing or for other need prime preparing fourth our side, And

sure platform our So to will plans. have companies, into have strategically and or to companies if then we include we them promising that make

of rating seems more to aforementioned, these credit needs. to be the global market model advanced case be policies again. is once Our our and that In industry on IB need meet awakening advanced IB, based the it I more will will that

and we investments. we HR And strategic put and capital our IB. So for to ESG are it others, have want and expanding more into

SOHO as know After remarks borrowers, going COVID-XX, also there been what borrowers we it You that whether and prolonged. do or other vulnerable the discontinue during this for your support, are well? be and and merchant don't in great has will we to mentioned will March

ends March. as give burden remain end alleviate these for borrowers SMEs very so we us can we in and believe if can And extension, enable We competitiveness. help support that customers, can our to so we support merchant this them it soft We that even Although the our on time direction the give slated is we that can Thank a borrowers. it to maturity we to or period in our to to you have and in a them landing. in active to want that more March, grace could much. want repay. have could have And

Hwan Ju Lee

about presupposition under the need for my pick that's and believe win I at peak And financial and to the would planning, you I X the thoughts. long-term like plan, the year. basic just business that don't think can't next And we year's performance ahead we group. for I this to what mid- overcome that we asked question, when doing out we're market. we Well, to answer out. -- market. second That's believe

for different of plan, ahead different be a time. years' We rolling could this it could five three It to portfolios for and is structure. for thinking and we're to And what business nonbank, at portfolio have bank looking a sustainable have point subsidiaries. us be

non-banking when focusing question, efforts profits, more think we we in potential one, as the know, the we have I our global, become number So What it means number one. we others, then securities, increasing it in that but are if for believe have about situation, believe generation you more resources. bank believe have our leeway is are at profits, think yet. on for that are but coverage, competitors or we we us on help when more the I third increase our for sustainable and we and and profit one. our I in we we the also many your making In potential probably And the great have our additions, can bank, rather can than number become to is then capital short-term can to the mentioned your can And question, look earnings want contribution. next And quite to to card not do nonbanking if investing subsidiaries overwhelming one are global-related overcome only many nonbank some I future. focus helps performance. we portfolio, capability, response subsidiaries, we was that to growth insurance, year, in us the for contribution if as inorganic number global not This provide we compared greatly, basis. low. And through is, And

make we So make much. you do so. and we very will Thank efforts, plans will to

Peter Kweon

on from Securities, Samsung move now question Kim Jaewoo. We Mr. next to

Jaewoo Kim

questions. two have I

going lot are They that what a all referral provide is And also, features of there's of not to in to differentiating first these heavy? But problem? the point included to if business KBFG's some I overly And will going Mydata you're for understand to going detail you this second, looks provide? launched. First, I impact. strategy consumer application, to benefit KBFG's become new What's on like. think what now would be financial first, platform, fintech the I of solution as Mydata are a isn't have digital I And what understand provide too some for some I envisioning? the But offerings there's then That's and think it's comparison planning that's well. And services. that you app that's open to and service the did positive like adopt are trading question. application a be stock providers. platform? and that launched, they going know Because support platform. a is that

elaboration is Insurance Could is? on bit a investment of performance. has increase quite been there some an income. It question the KB seems like relating factor what Another that you to provide

Peter Kweon

that to questions shortly. respond will we Yes,

Whan Han Dong

you. Thank am Dong for your Han Jaewoo, I question. Mr. Whan, Kim CDPO at KBFG.

also digital core Our CFO the going to channel. Star that's It's group's were this bank's I I If basically to a is, become lot may transition. provided of a the add, now If digital channel core Banking. characterize KB what information.

very So and for within are features Bank terms was stock of insurance, trading the in of Yes, housed claims process KB this app these heavy. platform. all now previous

your So concern is I where from. coming understand

interface utilized However, adopt browser API seamless. that and make in-app if we to is technology technology is sure

look to application of basis our like you this competitors So a on not overly compared is Seoul if at comparative capacity to Bank, compared peers. heavy app the Kakao our our

So, I a assure is the optimization, this regards no for is that system optimized to new there the terms in And platform. application problem you mobile capacity. with of is mobile

top convenient going experience, comes their and more use mobile to easy it So to of when they're feel to the on users platform. the

level par providing. are the Kakao to I on terms of that we big tech companies, So Bank believe we're optimization other compared in and that

that base. up incumbent translate just solutions we institutions environment. platform? really business could so a we user of and this their Now aspect. we have and Mydata we knowhow build provide digital we capabilities to could And strength wealth. help need what you've focus on are this have there's tech KBFG, really also expertise. in And But that they and just mentioned, the how that convenience to on financial want have strengthened The solutions key big link we as Mydata may offer we customers platforms, our some our with financial license, that to into aspect, better and And

Banking Star simple, speedy secure. and us, is For easy,

is [indiscernible] are which there into this is for four So personalized, but S's. another, users. to suitable we there said make needed And we

we is user base. everything But immense All user that and customized have And saying same providing personalized time, So personalized. data. we amount are KB, of our services. they're at significant the peers have

offerings. complicated and We with to also data compounded have product regards very different

we expertise believe, So we and aggregate user data, and we have to if base. we that meaningful are services and the to able we also, provide well. of mobile certificate products most and are our as our And certain all capabilities can

foundation you the ecosystem look certificate platform that all very the business, at of and of mobile is If at business transactions.

certificate, number the private all is certificate KB that's So of one the mobile processing the certificates. most of

this people And as Mydata and good can certificate, the to really worry actually product. of So to users their risk. not as provide based about products services. for provides complicated and off subscribe different a need do to And foundation we services privacy-related well very purchase

customer all that will make utilizing So of up by solution with base. sure provide we the to we come these best elements, a experience our

Unidentified Company Representative

on Yes. Insurance. will question briefly KB from I Insurance. respond I'm to your KB

in IPOs. those reflected to the there ample it a And but you As yield we performance. to money rate gains of market, basis. interest look didn't and you time of have of improved year, investments, equities this alternative know, liquidation PEF this year-over-year were weren't our a able from there be disposition at we actually new think But positions. for lot year's all year, But if this environment, were that bond, we get the

positions, increasing of So there on such that had impact investment were a gain. our and the gains from bigger liquidation really

Peter Kweon

will next the We Seo take Kiwoom from question Securities, Young-Soo.

Young-Soo Seo

I They Congratulations have are interrelated. on two performance. questions. your

stock we regulations concern I question are the merchants forward. in is restructuring some is went that and in be first we will regulation first it post-COVID, this XXXX, may also think up tightening X it that it also But there and precautionary about will I below, the actually going bps. and there After be The borrowers debt up. about that of the we situation, many going concerned that, forward, about. rate to vulnerable and could more there need that interest of more delinquencies real more be card time. that investments think repercussions, government the a loan people small heavily strengthening. were delinquency credit in to and could the have seems for then of invested were believe we right loans, and the has went in and in March market there And be for the There need lot the regulation, And that because estate if mind. COVID-XX market have rate after And crisis, that unsecured. their XXs of those for another point be And XXs hike concerned

thinking both trends, question. you what us we This there and the was and is you're question. first situation. up good strong how you're to tell collateral market about and only saw Until That asset going second now, my can market my respond? So is

for less was seems low NPLs, compared there if provisioning our even total U.S. assets provisioning, at that your you But provisioning and is advanced markets the to as such So it looking had it greatly. that provisioned our seems

big there's if there we policies a be There QX, the -- adjustments good we if government and is But we utilize a IFRS and more. it provisioning. future is because others, path. will X them, of However, of in think others. for could burden this in generally, opportunity a I provision because I And think

have that to also adherence bold So any with in the do forward, be can going you policies And have going forward. plans government's provisioning?

have related you any to provisioning? path big others do or plans So for

Peter Kweon

soon them. will Director Seo, questions, very and much, answer for your Thank you we

Hwan Ju Lee

asked questions. think you two I

saw or up it monitored when for assets the try rate restructuring goes certain unscrupulously in those are until to a and them to this leading we and unsecured limit and year, virtual that to seems and extent and invested more credit cash strengthened, their of when we for risk XXs XXs we assets them interest to flow had had unsecured going And And that now, regulations we First some is to management. and appropriate the saw loans. limit online others. have loans, because

it DSR on are bank for ask XX% they banks we will that to less the the that X% be regulate this. changed than and not believe to to we concerned they regulations, the it the average, And government's X%. about have this per XX%. said overly And And person. So and banks

had been to So a we low amount. regulating already this

loans, unsecured us in act that do possibility. burdens to be actually to the a not future, as need there is but will big the they for So we we think aware that

that are there other loan management institutions. So multiple financial or us for department, borrowers the and are secondary have borrowers there board against

allow up partial in for to cases, them there period, with then we a So and come those is repayment plan. can when maturity

next be for become After recover we cases. will you believe possibility that I the thorough ends, And possibilities some these many and of polarization there more And be people in economy, of provisioning, bold also believe very of ask will and So year, about after there provisioning. ratio a management conservative the And will very provisioned some because we economy rosy. coverage XXX%. in our for their possibilities these September, COVID borrowers, our be to in could the be were knew situations can And realized. burden. interest because repayment had NPL, deteriorate. of for this We for of provisioning end that vulnerable could we as was compared it borrowers

preemptively as past provisioning, rising has year. of are we other I X years. banks this CFO due was mentioned COVID-XX, it been to And And by compared competitors, consistently the the last had this. helped or the So us to a group, we preemptive think this to year, and managing X for

provisioning of possibilities ignore we enumerated, burden is there Next year, and if because you've a cannot that that. the

We forecast. will of long in Well, boldly we not, analysis -- capabilities that And the we -- recovery overlay have economic not prepared because forward-looking those But So there conservative scenario, for economic have a sufficiently the scenario be and a risk if hard. we mentioned. some we we we provision, gradual and apply to for economic we accumulated. regarding if an But and don't bet be that management there there could accumulated will that could think a reversals. do considered is and underwriting resembling bold just forecast even you've and possibilities, QX, method believe we is credit future whether big risks. it need will and provisioning, underwriting or

So we focus on grow our believe management. that asset and quality also we can

Peter Kweon

more than bit hour. So a we one spent

we think Yafei. From [Operator before one question close. we last time have Instructions] for Citi Securities, I

Yafei Tian

may. I I questions, if two have actually

question. much And done And the done serve initiatives wanted that the channel? traditional the cost So around question profitability you you what the that That's asset might you laid the first this be year then to do for one second you to just to any any in to new Are have understand, digital you will have And COVID write-backs first provisioned around able the I is compared estimate quality. have channel the have branch be is out. channel? the for is calculation what previously? new given next there possibility

Peter Kweon

give Yes, us moment. just one Yafei,

shortly. We that question will to respond

Hwan Ju Lee

for thank Tian, question. the Yafei Ms. much you very

against. internal digital on question or initiative. set first manage we to year, have Starting digital this some your transformation internally Regarding indicators

also via would is channel? attract our our total getting some new mix of those much digital how out customers, basically, are at the percentage First, of or acquire so-called a are customer digital look this monitoring. digital new also, across we what's of from when the channel? we we And And that new when channel, of this customers. digital sales there So measures our of sales sales, are we

terms In a of at this are accounting. cost undertaking project for we structure and purpose profitability, point, managerial currently

getting project So of terms able much are CIR, cost once ratio. we how of complete, will insight more we in of is get income be terms in a channel contribution that to digital

performance through from that now, our digital the be to we're only able But digital users we're So COVID of that in the getting meet channel. of right we're activity we level the post-COVID, at rate The level. following terms of channel. will

out are seeing come of that We performance digital channel. good

more get and this making detail. will to sophisticated. that, more come to communicate process are data of we we once in the However, we And back you you

Unidentified Company Representative

question. much very that you for Thank

In terms explanation before. provide provision you policy, with provisioning the we of and some

-- from our look approach provide aspect and could measures, the that seen coverage has overall points. picture, ratio be is That all been KBFG's you think Just data coverage also if and other over big preemptive conservative. at provisioning And I you with our to our years. the is policy the quite

will when to forward, to Going conservative quite continue be provisioning. we it comes

at question look system of respect next potential at you was the end at reversal your scenarios year, with or to look write-back this will provisions and we level. If the year, this of the year,

well. Last of provisioning forward-looking year, scenario billion And some forward-looking is the scenarios, are also, there at there was KRWXXX FSC. sector-based as are systems based. there level, analysis So systems which

-- more compared systems So conservatively level have basically, based provisioned analysis. to we the just

of on to wait Next would year come, depending things provisioning? top Basically, going and to size of current we out. years So we on more are will that, to look the like? how what add economic cycle have and play see the

it's too position you basically, provisions bit me writing I think back all, a actually our is as we would answer in is give early be All whether to to some definitive and year. a provisioning our very conservative. next for -- preemptive policy

Peter Kweon

and note we Thank on conclude you earnings very will you much. also your for conclude Q&A Thank answer. the presentation. And this our

KB Financial (KB) 21 Oct 212021 Q3 Earnings call transcript