KB Financial Group Inc

Hello, I am Bong Joong Kwon, the director of KB Financial Group IR. We will now begin the 3rd quarter of 2025. I would like to express my deep gratitude to all of you who have participated today. At the financial performance presentation, the director, Sang Rok Na, who is the CFO of the group, and the members of the group are attending. Today's announcement is scheduled to be announced by CFO on the 3rd quarter of 2025, and we will have time to answer questions after the announcement. Then, please announce the 3rd quarter performance of CFO.

Hello, I'm CFO Na Sung-rok of KB Group. Thank you very much to everyone who participated in the 3rd quarter performance announcement in 2025. I will briefly talk about the direction of profitability management of the group that recently responded to the changing business environment. This year, while the low-growth flow of the Korean economy continues, there is a new flow of various changes and new flows such as financial and exchange rate variability, government housing market stabilization measures, and capital market activation measures. Even in this environment, the KB Muscle Group is continuing to gain stable profits by absorbing the uncertainty of the competition based on a solid fund meta. By securing NIM defense with a stable growth rate of key funds, it is reducing the impact of foreign variables, In the new flow of the non-banking portfolio, we are also building a balanced interest structure. RWA also maintains the growth rate at the appropriate level by absorbing the influence of various variables, and it is judged that the overall interest base of the group is managed stably. On the other hand, the domestic economy is facing a turning point where the government's KOSPI 5000 goal and the economic center axis are moving from real estate to the capital market. KB Group is planning to use this change as an opportunity to strengthen the flow of profit-making influence and expand the growth base of the group. Based on the strong WM channel of banks and securities, we will expand the profit base by expanding the sale of brokerage, credit trade, and investment products. and contribute to the growth of the national financial assets. In addition, we plan to capture new business opportunities by leading the flow of the market in the field of production financial and adventure capital expansion based on the accumulated influence and influence in the capital market sector. Outlook Group's venture and innovative company investment experience and success cases will further strengthen the market leadership of the group in the future in the field of growth and industrial investment. In this way, KB Military Group will actively respond to changes based on the prepared leadership and improve the quality of the group's revenue structure. Next, I would like to talk about the three-minute cash payment before explaining the business performance. On Friday, the Board of Directors agreed on a cash payment of 930 won per week, a total of 3,357 billion won. Sanbun-gi Ju-dang Hyeong-geum Bae-dang-geum-un, orecho yeong-gan bae-dang chong-aek sang-yang-gwa, ja-sa-ju ma-i-bi hyo-gwa-ga ban-yeong-dae-me-seo, jeon-nyeon dong-gi-hwa bi-gyo-hae-seul-ttae, baek-sam-si-bo-won jeung-ga-hae-seum-da. Lee-yeo-seo, KB Gun-yong-gu-rup-ae, gye-yong-sil-jeok-eul seol-myeong-deul-i-gaes-seum-da. KB Gun-yong-gu-rup, Sanbun-gi Dang-gi-sun-i-ik-eun, il-jo-yook-cheon-pal-baek-yook- It was recorded at 5,217 billion won. Group ROE is 12.78%, which is improving rapidly compared to the previous year. This is because the main profit of the group is good, but the settlement effect of the ELS short-term bond has disappeared, This is because the profit of the 2nd quarter of the joint fund has been reflected in the profit of the business. This is because the profit of the second quarter of the joint fund has been reflected in the profit of the business. We are maintaining this diversified portfolio. From now on, I will tell you the performance of each category in detail. In the third quarter of 2025, the profit of the group ranking was 9.74 billion won. We recorded a performance similar to the previous year. In the third quarter of 2025, the profit of the group ranking was 3.33 billion won. Compared to the previous quarter, it is similar to the previous quarter by removing the standard effect that was recognized as interest-based funds. Next, I will tell you about the growth of the bank's original loan. By the end of September 2025, the bank's original loan amounted to 3.75 trillion won, 3.3% compared to the end of last year, and 0.9% compared to the previous quarter. The stock loan amounted to 182 trillion won, 0.7% compared to the previous quarter, and The company's loan has grown by 1% compared to the previous year, focusing on large and medium-sized companies. Considering the government's strong management of the stock market and the stabilization of the housing market, the company's loan is expected to show a limited growth rate for the time being. However, from a profitable point of view, the company's portfolio is rebalancing, focusing on medium-sized companies, The third quarter, the bank NIM recorded 1.74% due to the effort to manage the payment cost, and the group NIM maintained the same level as the previous quarter with 1.96%. In particular, this quarter, the bank NIM increased the core budget by about 7.9 trillion won in the case of a reduction in the interest rate of the loan. margin of defense is stable. Next, I would like to talk about non-return interest. The non-return interest of the three-minute cumulative group is 3.73 trillion won, It decreased by 1.1% compared to the previous year's same period. The total sales of other businesses in the third quarter decreased by 15.4% compared to the previous year's same period. It recorded 7,866 billion won. The previous year's loss insurance IB&R preparation fund is mainly contributing to the return of 1,230 billion won. On the other hand, the net income of the third quarter was increased by 3.5% compared to the previous year with a net income of 2,9524,000 won. With the increase in the stock market exchange rate and the increase in the income of the stock market, the net income of the stock market has increased significantly, and the increase in the net income of the stock market and the increase in the net income of the stock market have contributed to the actual improvement. In particular, KB Securities has increased by 16.5%, KB's self-management showed a 23.3% growth rate in net net profit, encouraging the group to expand its net profit. The net profit increase in the same capital market sector is in line with the flow of capital market activity, and I think there is enough room for it to expand in the future. As the non-bank branch is creating about 70% of the interest rate of the group, we plan to strengthen the non-bank competitiveness around the capital market and expand the base of interest rates. Next, I would like to talk about the general management fee. The general management fee for the third quarter is 5.77 trillion won, which is an increase of 2.8% compared to the previous year due to the continuous cost efficiency efforts. The third quarter cumulative group CIR is managed stably within the target range with 37.2%. The party has been working hard to reduce costs and reduce efforts, and at the same time, It maintains investment at the appropriate level in the necessary areas, and it strategically expands investment in the future growth areas such as AI. We will continue to increase the efficiency of the cost structure through selective financing. Next is the 8-page group credit loss deposit. The deposit of the third quarter was reduced by 3,645 billion won, 44.4% compared to the previous quarter. The third quarter group credit cost recorded 30BP, which fell by 25BP compared to the previous quarter, and 46BP as a cumulative standard, which has changed to a lower stable trend. This quarter, the net profit of the previous quarter decreased by about 2,906 billion won compared to the previous quarter, explaining the main cause, while maintaining a conservative additional net profit of the previous quarter, In the latter half of the year, the portfolio improvement efforts and the high inflation rate of the bank's retail credit rating model have significantly eased the burden on the settlement of interest rates. In the third quarter, some interest rates were introduced as a result of the decline in interest rates, and the overall settlement of interest rates has been greatly reduced by reflecting on these influences. The party believes that the efforts to strengthen risk management have gradually begun to work effectively, Considering the flow of this volatility improvement, the credit cost of this year's group is expected to be managed at the middle level of 40BP. Next, I would like to talk about the group's capital ratio. At the end of September 2025, the group's BIS ratio was 16.28%, and the CET1 ratio was 13.83%, ensuring the highest level of capital adequacy in the industry. As of the end of September 2025, the group's household assets increased by 358 trillion won, which is 3.5% compared to the end of last year. In the third quarter, the 48 won per dollar interest rate was affected by the increase in RWA, but we managed the RWA increase at the appropriate level by absorbing the efficiency effect through RWA limit monitoring and portfolio adjustment. From the next page, please refer to the detailed data on the performance I have explained so far. Then, with this, I will end the report on the performance of the KB military group in the 3rd quarter of 2025. Thank you for listening.

Yes, thank you for your presentation. From now on, we will have a Q&A session. If you are watching on the Internet, please use the contact information on the last screen of the presentation. If you are listening on the phone, please press the star and number 1. We will wait for your questions. Yes, I will take the first question. Kim Do-hwa, a member of the Hanwha Investment Authority, please ask a question.