3Q20 Financial Analysis III. 3Q20 Asset Quality
IV. 3Q20 Financial Highlights of Major Subsidiaries
V. Appendix
Disclaimer Statement
The consolidated financial information of KB Financial Group Inc. (the "Group") presented herein is based on the Korean International Financial Reporting Standards(K-IFRS). It is currently being reviewed by the Group's independent auditor, and accordingly, is subject to change.
The consolidated financial reports presented herein is based on Korean IFRS9(K-IFRS9). Note that the financial results for years before 2017 contained herein have not been restated retrospectively.
From 2018, for better peer comparison purpose, the Group reclassified certain interest income out of Net Gain/Loss on Financial Assets at FVPL under Other Operating Profit to Interest Income under Net Interest Income. Note that beginning from the financial results for 2017 contained herein have been restated retrospectively.
As KB Insurance and KB Capital became wholly-owned subsidiaries of the Group as of July 7, 2017, the financial results of KB Insurance and KB Capital have been fully consolidated in the Group's financial statements since 3Q17.
As Prudential Life Insurance became wholly-owned subsidiary of the Group as of August 31, 2020, the financial results have been fully consolidated in the Group's financial statements since 3Q20(one month period of September).
Total may not sum due to rounding.
Majornon-recurringitems2)
I. 3Q20 Financial Highlights _ Overview
Group Profitability Overview
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Net Interest Income
7,143.4
6,868.6
4.0
2,460.2
2,334.0
5.4
Net Fee & Commission Income
2,170.5
1,716.5
26.4
789.2
711.2
11.0
Other Operating Profit
-67.3
49.1
N.A.
-17.7
227.7
N.A.
Gross Operating Income
9,246.6
8,634.2
7.1
3,231.7
3,272.9
-1.3
G&A Expenses
4,646.2
4,456.7
4.3
1,600.6
1,586.4
0.9
Provision for Credit Losses
754.3
459.9
64.0
214.6
296.0
-27.5
Net Operating Profit
3,846.1
3,717.6
3.5
1,416.5
1,390.5
1.9
Net Non-Operating Profit
120.4
67.3
78.9
154.4
-14.3
N.A.
Profit for the Period
2,925.6
2,778.1
5.3
1,194.2
992.5
20.3
Profit attributable to
2,877.9
2,777.1
3.6
1,166.6
981.8
18.8
controlling interests
Group Net Profit 1)(bn won)
5-Year CAGR 19%
Highlights
Net Profit for 3Q20
1,166.6 bn
(+18.8% QoQ)
Increased 18.8% mostly driven by net interest and fee income growth & bargain purchase gain in addition to base effect from 2Q sizable preemptive provisions
Cumulative Interest Income for 3Q20
7,143.4 bn
(+4.0% YoY)
Continued modest growth of 4.0% YoY backed by consolidation of PRASAC(MDI Cambodia) as well as loan book momentum of the Bank and Card
Cumulative Net Profit for 3Q20
2,877.9 bn
(+3.6% YoY)
Increased 3.6% YoY mainly due to modest growth of interest income and significant increase of fee income, and highlighted solid earnings fundamental
Cumulative Fee Income for 3Q20
2,170.5 bn
(+454.0bn YoY)
Significantly expanded by 454bn YoY, largely supported by fee income growth of securities business
3,311
3,312
3,061
2,144
+5.1%
2,861
1,698
2,722
1,401
2,878
2,777
2014
2015
2016
2017
2018
2019
3Q19
3Q20
(Cumulative)
(Cumulative)
Cumulative Credit Cost for 3Q20
0.25%
(0.20% on recurring basis)
Even after sizable preemptive provisioning, maintained stable level of credit cost under prudent risk management
Non-recurringitems for 3Q20 (before tax)
Prudential Life Insurance
Added as subsidiary upon full
acquisition(31 Aug.)
Consolidated financial results for
3Q20(for 1 month of Sep.) with bargain purchase gain
Net profit for 3Q20: W11bn
Bargain purchase gain: W145bn
Note 1) Based on profit attributable to controlling interests
Major non-recurring items (after tax)
3Q19(Cumulative): Large-scale reversals of provisioning(W74bn), ERP costs(W48bn), etc.
3Q20(Cumulative): PEF related losses including TRS valuation losses (W29bn),
CVA net losses(W12bn), Provisioning for receivables from brokerage business(W14bn), Large-scale of provisioning(W94bn), Provisioning for potential reimbursement related to investor's losses in PEF(W21bn) and non-recurring items in 3Q20 as stated at the bottom of the right side
Bargain purchase gain related to the acquisition of Prudential Life: W145bn
Disposal gain on overseas real estate investment: W42bn
Cumulative ROE and ROA for 3Q20 recorded 9.76% and 0.70%, respectively
Disregarding major one-off factors such as bargain purchase gain and 2Q20 large-scale preemptive provisionings, cumulative ROE for 3Q20 marked 10.01%, demonstrating solid fundamental and profitability
Proved KB's diversified non-banking business portfolio and competency in asset management
Loans in Won of the Bank continued quality growth by 8.6% YTD and 1.7% QoQ, amounting to W292tn
Household loans increased 6.7% YTD and 2.4% QoQ mostly driven by Jeonse and unsecured loans
Growth of corporate slowed down QoQ with 1.3% of stable increase of SME lendings mostly led by SOHO while large corporate lendings decreased by 1.9%
3Q20 Group NIM and Bank NIM recorded 1.73% and 1.49%, respectively
Despite lowered asset yields reflecting decline of market rates, 3Q20 Bank NIM fell by only 1bp, which is largely attributable to decreased funding cost from expanded low-cost deposits
While trying to secure proper margins, KB aims to diversify revenue sources and growth engines
3Q20 Group CIR recorded 49.5%, and 50.3% on cumulative basis
Cumulative CIR for 3Q20, excluding non-recurring factors such as digitalization-related costs, decreased to 48.3%, demonstrating downward trend
Pursue further improvement with an effort to expand revenue sources and save costs
Maintained solid asset quality against economic headwind
3Q20 Group CCR recorded 0.22%, and 0.25% on cumulative basis, demonstrating KB's high level of risk management
Cumulative CCR for 3Q20, excluding non- recurring factors such as sizable preemptive provisionings in 2Q20, continued to secure stable level of 0.20%
Maintained conservative asset quality management against prolonged COVID-19 pandemic and economic downturn
Industry-highest capital adequacy
3Q20 Group BIS and CET1 ratios are expected to improve to 14.69%, 13.08% respectively
Maintained the industry-highest level of capital adequacy, even after the acquisition of Prudential Life, on the back of the early adoption of the Basel III as well as accumulation of earnings and strategic capital management
3Q20 Bank BIS and CET1 ratios are expected to record 17.22%, 15.08% respectively
4
II.3Q20 Key Takeaways _ Prudential Life Insurance
"Best-in-Class" Life Insurance Service Provider
PAI and Mid to Long-term Strategy
Life Insurance Services Delivering Changes for Better World
Industry-leading Financial Position
Prudential
Industry Average, (%)
The industry- highest
461.8
423.7
456.4
RBC ratio
('18 →'20.6)
271.2
284.6
292.6
Post-
Acquisition Integration
'Smooth settle down Value-up' under group umbrella
Operate independently to ensure smooth transition
Maximize Prudential Life's full potential as a financially strong insurance company with the best Life Planner network and the most stable investment portfolio
Market-leading
83.4
86.9
87.9
13th policy persistency rate
('18 →'20.6)
80.7
82.5
80.1
Prevailing loss ratio
82.9
86.2
85.3
over market
Mid to
· Reinforce customer-centricity
Long-term
· Establish a premium business model connecting Prudential Life
Strategy
Planners with KB's diverse financial services
· Elevate customer satisfaction through digital innovation
Acquisition Effect and Potential Synergy
('18→'20.6)
53.6
52.3
51.8
Stable investment
yield
3.5
3.9
(Average of recent 3 years)
Outstanding Sales Professionals, Life Planner ®
Diversified portfolio
2019
3Q201)
30.8%
40.3%
69.2%
59.7%
Banking
Non-banking (based on net profit)
1) Including 3Q20 cumulative net profit of Prudential
Scale-up of insurance business
9%
12%
out of total group asset
7%
11%
out of group net profit
5th largest life insurance company
(based on sum of net profits of Prudential Life and KB Life in 2019)
Superior 13th registration settlement rate
Prudential
※ 13th registration settlement rate: 52.8%
Industry 52.8%
The first life insurer in Korea to introduce the financial insurance experts
Average
system(Life Planner®) with professional training system
41.2%
The highest ratio of certified insurance consultants for 13 consecutive years
The ratio of certified insurance consultants: 32.5%
2,054 (as of 2019) most qualified sales professionals providing the best life insurance services
Expected Synergy
Sales Channel Maximize synergy between KB Life's strong bancassurance channel and Prudential Life's Life Planner network
Cross-Sell Utilize Prudential Life Planners as outbound marketing channel to widen cross-selling opportunities in investment and wealth management products, as well as other insurance products
Premium Services Provide a group-wide network of premium services in real estate, tax management, and legal services to Prudential Life's affluent customer base of 650 thousand customers
Asset Management Enhance the group's asset management business based on increased AUM from Prudential Life
5
II. 3Q20 Financial Analysis _ Net Interest Income
Group Net Interest Income
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Interest Income
10,800.5
11,012.0
-1.9
3,578.8
3,601.7
-0.6
Loans
9,110.2
9,253.9
-1.6
3,031.6
-1.4
3,075.6
Financial Investments
1,471.7
1,535.3
-4.1
480.9
479.2
0.4
Others
218.6
222.8
-1.9
66.3
46.9
41.4
Interest Expense
3,657.1
4,143.4
-11.7
1,118.6
1,267.7
-11.8
Deposits
2,252.4
2,650.9
-15.0
677.3
-13.9
786.2
Debts & Debentures
1,337.5
1,396.8
-4.2
423.4
460.2
-8.0
Others
67.2
95.7
-29.8
17.9
21.3
-16.0
Net Interest Income
7,143.4
6,868.6
4.0
2,460.2
2,334.0
5.4
Net Interest Income (bn won)
8,905
9,197
8,247
457
478
7,143
1,230
6,869
6,403
534
1,168
+4.0%
370
6,203
616
341
520
1,084
616
939
487
465
530
915
981
542
464
980
599
465
377
24
73
401
4,712
4,829
5,565
6,101
6,364
4,747
4,993
2015
2016
2017
2018
2019
3Q19
3Q20
(Cumulative) (Cumulative)
Bank
Securities
Insurance
Card
Others(Incl. adjustment for consolidation)
Note) Based on each subsidiary's Net Interest Income on the financial statements for group reporting
Loan Growth (tn won, %)
280
287
292
269
258
260
261
8.6
6.8
4.5
0.9
1.4
4.2
3.0
2.4
1.7
0.3
0.7
0.5
'19.3
'19.6
'19.9
'19.12
'20.3
'20.6
'20.9
Bank Loans in Won
Growth(QoQ)
Growth(YTD)
NIM (%)
1.98 1.97
1.94
1.94
1.71
1.83
1.70
1.88
1.77
1.67
1.74
1.73
1.67
1.56
1.52
1.61
1.50 1.49
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
Group NIM
Bank NIM
Cumulative
6
II.3Q20 Financial Analysis _ Net Non-Interest Income
Group Net Non-Interest Income
Fee Income Contribution (Cumulative)
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Net Fee & Commission Income
2,170.5
1,716.5
26.4
789.2
711.2
11.0
Credit Card Fees
374.4
289.8
29.2
128.0
133.9
-4.4
37.0%
Trusts
358.8
410.5
-12.6
122.9
99.4
23.6
Agent Activity Fees
147.9
123.7
19.6
51.0
46.9
8.7
49.1%
3Q19
50.9%
3Q20
(Incl. Bancassurance)
Represent Securities
126.5
111.6
13.4
44.7
41.4
8.0
63.0%
(Incl. ITC Products)
Banking Activity Fees
142.6
163.6
-12.8
46.5
46.2
0.6
Securities Business
588.4
321.2
83.2
250.5
193.1
29.7
Others
431.9
296.1
45.9
145.6
150.3
-3.1
Bank
Non-Bank
Other Operating Income
-67.3
49.1
N.A.
-17.7
227.7
N.A.
Note) Based on simple arithmetic sum of each subsidiary's Net Fee & Commission Income
Net Non-Interest Income
2,103.2
1,765.6
19.1
771.5
938.9
-17.8
on the financial statements for group reporting
Net Fee & Commission Income (bn won)
Composition of Fee Income (Cumulative, bn won)
2,243
2,355
2,050
229
380
+26.4% 2,171
240
1,535
1,585
265
262
1,717
405
133
273
172
212
552
626
580
271
109
92
173
680
98
193
426
1,156
1,088
1,125
1,123
1,133
813
847
2015
2016
2017
2018
2019
3Q19
3Q20
(Cumulative)
(Cumulative)
Bank
Securities
Card
Others(Incl. adjustment for consolidation)
69
173
291
113
428
Bank
Non-Bank
140
170
215
253
148
200
Bancassurance
Mutual Fund Sales, etc.
Brokerage
Credit Card
Trusts
Trusts
Banking Activities
IB
Others
Credit Card Services Others(Incl. FX, etc.)
Note) Based on each subsidiary's Net Fee & Commission Income on the financial statements for group reporting
Note) Based on simple arithmetic sum of each subsidiary's Net Fee & Commission Income on the financial statements for group reporting
Note) Non-recurring items include ERP, digitalization costs, etc.
8
II.3Q20 Financial Analysis _ Financial Position Overview
Group Financial Position
tn won, %
2020.9
2020.6
QoQ 2019.12
YTD
Assets
605.5
569.5
6.3
518.5
16.8
Cash & Due from Financial Institutions
25.4
22.5
12.9
20.8
22.1
FVTPL1) Assets
58.8
58.7
0.2
53.5
9.9
Financial Investments
96.7
74.8
29.3
71.8
34.7
Loans
378.1
367.9
2.8
339.7
11.3
Property & Equipment
8.6
7.9
8.9
7.9
8.9
Other Assets
37.9
37.7
0.5
24.8
52.8
Liabilities
563.4
529.2
6.5
479.4
17.5
FVTPL1) Liabilities
13.3
13.4
-0.7
15.4
-13.6
Deposits
338.0
327.7
3.1
305.6
10.6
Debts
47.8
46.9
1.9
37.8
26.5
Debentures
60.3
57.4
5.1
50.9
18.5
Other Liabilities
104.0
83.8
24.1
69.7
49.2
Shareholder's Equity
42.1
40.3
4.5
39.1
7.7
Share Capital
2.1
2.1
-
2.1
-
Hybrid Securities
1.2
0.8
50.0
0.4
200.0
Capital Surplus
16.7
16.7
0.0
17.1
-2.3
Accumulated Other
0.4
0.3
33.3
0.3
33.3
Comprehensive Income
Retained Earnings
21.9
20.8
5.3
19.7
11.2
Treasury Shares
-1.1
-1.1
N.A.
-1.1
N.A.
Non-Controlling Interests
0.9
0.7
28.6
0.6
50.0
Group Total Assets 2)
908.4
873.5
4.0
789.8
15.0
AUM 3)
302.7
304.7
-0.7
271.1
11.7
Note 1) Fair Value Through Profit or Loss
Based on simple arithmetic sum of each subsidiary's total assets on the financial statement for group reporting and AUM
Including the Bank's trust asset not subject to group reporting
Group Assets (tn won)
605.5
518.5
25.9
479.6
24.4
23.7
24.3
436.8
22.2
23.0
38.1
36.6
19.5
20.5
55.8
375.7
34.8
47.8
17.7
329.1
20.4
32.4
45.1
16.6
15.8
37.4
16.1
32.4
387.4
437.0
6.1
329.8
357.0
307.1
290.3
2015
2016
2017
2018
2019
2020.9
Bank
Securities
Insurance
Card
Prudential
Others(Incl. adjustment for consolidation)
Note) Based on each subsidiary's total assets on the financial statements for group reporting
Group AUM (tn won)
271.1
302.7
252.7
234.9
28.4
29.0
216.6
30.8
83.3
25.8
22.4
59.2
51.0
50.6
52.7
120.4
135.9
19.1
123.3
131.8
115.2
97.8
47.5
19.6
43.3
47.6
51.7
54.5
34.2
43.7
2015
2016
2017
2018
2019
2020.9
Bank Trust
Securities
Asset Management
Real Estate Trust & others
9
II. 3Q20 Financial Analysis _ Assets & Liabilities
Bank Loans in Won
tn won, %
2020.9
2020.6
QoQ
2019.12
YTD
Household
157.8
154.1
2.4
147.9
6.7
Mortgage
83.3
82.1
1.5
77.2
7.9
General
74.5
72.0
3.5
70.7
5.4
[Home Equity]
30.7
31.0
-1.0
31.8
-3.5
Corporate
134.3
133.2
0.8
121.1
10.9
SME
113.1
111.6
1.3
103.3
9.5
[SOHO]
75.1
74.0
1.5
69.2
8.5
Large Corp, etc.
21.2
21.6
-1.9
17.8
19.1
Total
292.1
287.2
1.7
269.0
8.6
Loan Portfolio (tn won, %)
207.3
220.6
234.9
257.4
269.0
292.1
7.3
7.6
6.8
7.0
6.6
8.2
13.0
12.1
12.4
12.6
12.7
12.9
23.3
24.4
25.6
25.5
25.7
25.7
29.9
29.4
28.8
27.7
26.3
25.5
25.8
26.5
26.4
27.2
28.7
28.5
2015
2016
2017
2018
2019
2020.9
Mortgage
General
SOHO
SME(Excl. SOHO)
Large Corp, etc.
Bank Deposits & Debentures in Won
tn won, %
2020.9
2020.6
QoQ
2019.12
YTD
Deposits
302.9
297.9
1.7
281.6
7.6
Core Deposits
146.6
139.8
4.9
124.5
17.8
Time & Savings
153.0
153.6
-0.4
152.9
0.1
[Time Deposits]
140.2
141.0
-0.6
139.3
0.6
CD, RP, etc.
3.3
4.5
-26.7
4.2
-21.4
Debentures
16.9
15.5
9.0
13.0
30.0
Total
319.8
313.4
2.0
294.6
8.6
Card Assets
tn won, %
2020.9
2020.6
QoQ
2019.12
YTD
Credit Card
18.4
17.7
4.0
18.6
-1.1
Credit Sales
11.9
11.3
5.3
12.0
-0.8
[Installments]
5.2
5.0
4.0
5.1
2.0
Card Loans
5.4
5.3
1.9
5.3
1.9
Cash Advance
1.1
1.1
0.0
1.2
-8.3
Factoring, etc.
4.0
3.7
8.1
3.3
21.2
Total
22.4
21.4
4.7
21.9
2.3
10
III. 3Q20 Asset Quality _ Group Overview
Group Asset Quality
Precautionary & Below Ratio / NPL Ratio (%)
bn won, %
2020.9
2020.6
QoQ
2019.12
YTD
Total Loans for NPL Classification
362,674.6
355,479.6
2.0
334,552.5
8.4
Precautionary
2,439.7
2,440.4
0.0
2,608.4
-6.5
Substandard
770.1
761.6
1.1
662.5
16.2
Doubtful
576.8
600.7
-4.0
700.9
-17.7
Estimated Loss
308.6
355.5
-13.2
288.4
7.0
Substandard & Below Loans(NPL) (A)
1,655.5
1,717.8
-3.6
1,651.8
0.2
NPL Ratio
0.46%
0.48%
-0.02%p
0.49%
-0.03%p
1.39 1.40 1.38
0.60
0.59
0.55
1.27
1.26
1.17
1.13
0.49
0.50
0.48
0.46
Loan Loss Reserves (B)
2,455.9
2,480.7
-1.0
2,430.0
1.1
NPL Coverage Ratio Ⅰ (B/A)
148.3%
144.4%
3.9%p
147.1%
1.2%p
Reserves for Credit Lossess (C)
2,702.9
2,612.7
3.5
2,555.2
5.8
NPL Coverage RatioⅡ[(B+C)/A]
311.6%
296.5%
15.1%p
301.8%
9.8%p
Note) Based on simple arithmetic sum of each subsidiary's figures
Credit Cost Ratio (%)
'19.3
'19.6
'19.9
'19.12
'20.3
'20.6
'20.9
Precautionary & Below Ratio
NPL Ratio
NPL Coverage Ratio(Ⅰ ) (%)
2.232.06 2.15 2.14
0.21
0.15
0.21
0.25
0.05
-0.03
0.06
0.08
2.03
1.96
1.05
0.25
0.29
0.22
0.11
0.12
0.14
288.0
268.6
262.4
246.6
263.4
249.6
249.8
147.1
141.4
144.4
148.3
138.2
135.6
132.8
130.2
134.5
140.4
120.2
118.1
126.7
115.3
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
Group Bank Card
'19.3
'19.6
'19.9
'19.12
'20.3
'20.6
'20.9
Group
Bank
Card
11
III. 3Q20 Asset Quality _ Bank & Card
Bank Asset Quality
bn won, %
2020.9
2020.6
QoQ
2019.12
YTD
Total Loans for NPL
312,718.4
307,691.5
1.6
288,896.7
8.2
Classification
Precautionary
1,038.0
1,058.9
5.0
1,249.2
-16.9
Substandard
603.9
619.1
-2.5
590.4
2.3
Doubtful
257.9
269.5
-4.3
350.2
-26.4
Estimated Loss
131.3
132.3
-0.8
116.6
12.6
NPL Ratio
0.32%
0.33%
-0.01%p
0.37%
-0.05%p
NPL Coverage Ratio
140.4%
134.5%
5.9%p
130.2%
10.2%p
Delinquency Ratio (%)
1.24
1.23
1.20
1.32
1.25
1.16
1.24
1.11
0.35
0.24
0.23
0.27
0.26
0.29
0.24
0.24
2016
2017
2018
'19.3
'19.6
'19.9
'19.12
'20.3
Bank
Card
1.08
0.99
0.21 0.20
'20.6 '20.9
Card Asset Quality
NPL Ratio (%)
bn won, %
2020.9
2020.6
QoQ
2019.12
YTD
Total Loans for NPL
22,394.7
21,446.6
4.4
21,922.4
2.2
Classification
Precautionary
824.9
759.7
8.6
875.1
-5.7
Substandard
4.4
4.1
6.9
3.6
22.2
1.30
1.40
1.38
0.74
0.58
0.48
1.46
1.46
1.49
0.47 0.450.41
1.51 1.48
1.37
1.17
0.37 0.360.330.32
Doubtful
182.5
206.0
-11.4
223.0
-18.2
Estimated Loss
75.6
106.7
-29.1
73.0
3.6
NPL Ratio
1.17%
1.48%
-0.31%p
1.37%
-0.20%p
NPL Coverage Ratio
288.0%
249.8%
38.2%p
263.4%
24.6%p
Provision for Loan Losses
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Bank
279.6
59.1
373.1
107.5
93.4
15.1
Household
202.0
174.8
15.6
44.6
90.0
-50.4
Corporate
77.6
-115.7
N.A.
62.9
3.4
1,750.0
Card
271.9
316.9
-14.2
58.2
104.7
-44.4
2016
2017
2018
'19.3
'19.6
'19.9
'19.12
'20.3
'20.6
'20.9
Bank Card
Bank Credit Cost Ratio (%)
0.22
0.16
0.14
0.19
0.19
0.18
0.24
0.16
0.10
0.13
0.11
0.11
0.12
0.14
0.05
0.04
0.05
0.06
0.08
-0.03
0.11
0.01
0.01
0.03
0.01
-0.06
-0.06
-0.08
-0.04
-0.20
2016
2017
2018
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
Total
Household
Corporate
12
3Q19 3Q20
(Cumulative) (Cumulative)
Majornon-recurringitems
IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Kookmin Bank
Profitability Overview 1)
Net Interest Income & NIM (bn won, %)
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Net Interest Income
4,992.9
4,747.4
5.2
1,717.2
1,638.2
4.8
Net Fee & Commission Income
813.2
846.7
-4.0
270.2
257.2
5.1
Other Operating Profit
-9.9
-96.2
N.A.
-18.8
135.8
N.A.
Gross Operating Income
5,796.2
5,497.9
5.4
1,968.6
2,031.2
-3.1
G&A Expenses
2,815.2
2,721.0
3.5
939.9
988.1
-4.9
Provision for Credit Losses
333.4
55.5
500.7
117.4
139.4
-15.8
Net Operating Profit
2,647.6
2,721.4
-2.7
911.3
903.7
0.8
Net Non-Operating Profit
-69.2
3.1
N.A.
-43.4
9.4
N.A.
Profit for the Period 2)
1,882.4
2,006.7
-6.2
635.6
660.5
-3.8
Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests
Net Profit (bn won)
2,259 2,439
2,175
-1.2%1,954
1,979
1,107 964
2,007 1,882
2015 2016 2017 2018 2019
Note) Major non-recurring items (after tax)
3Q19(Cumulative): Reversals of provisioning(W77bn), ERP costs(W35bn),
Additional provisioning in response to changes in retail credit scoring system(W14bn) 3Q20(Cumulative): Preemptive provisioning based on FLC(W115bn),
Large-scale reversals of provisioning(W55bn), CVA net losses(W12bn)
1.71
1.71
1.67
1.69
1.61
1.58
1.52
6,364
6,101
4,712
4,829
5,394
4,747
4,993
2015
2016
2017
2018
2019
3Q19
3Q20
Net Interest Income
NIM
(Cumulative) (Cumulative)
Net Fee & Commission Income (bn won)
1,156
1,088
1,225
1,123
1,133
266
208
242
253
57
228
847
101
47
66
813
79
148
176
147
129
160
157
225
204
200
51
173
239
222
98
69
235
195
210
148
113
173
182
165
140
306
287
308
148
241
182
237
170
2015
2016
2017
2018
2019
3Q19
3Q20
(Cumulative) (Cumulative)
Trusts
Banking Activities
Card Services
Mutual Fund Sales
Bancassurance
FX, etc.
CIR (bn won, %)
CCR (bn won, %)
49.5
0.12
48.6
0.03
333
2,721
2,815
56
3Q19
3Q20
3Q19
3Q20
(Cumulative) (Cumulative)
(Cumulative) (Cumulative)
G&A Expenses
CIR
Provision for Credit Losses
CCR
13
IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Securities
Profitability Overview 1)
Net Fee & Commission Income (bn won)
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Net Fee & Commission Income
680.1
426.3
59.5
280.9
224.9
24.9
Brokerage
427.8
184.2
132.2
183.0
146.6
24.8
Investment Banking
214.6
185.6
15.6
84.7
63.3
33.8
Financial Products
42.2
50.5
-16.4
14.8
13.3
11.3
Others
-4.5
6.0
N.A.
-1.7
1.7
N.A.
Interest Income
377.1
400.7
-5.9
132.7
120.2
10.4
Trading
-6.5
5.9
N.A.
26.5
91.6
-71.1
G&A Expenses
588.1
556.4
5.7
205.4
201.0
2.2
Provision for Credit Losses
23.5
10.0
135.0
-0.3
3.0
N.A.
Net Operating Profit
439.1
266.5
64.8
235.0
232.7
1.0
Net Non-Operating Profit
26.7
43.5
-38.6
47.4
-23.6
N.A.
Profit for the Period 2)
338.5
224.7
50.6
209.7
150.2
39.6
Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests
Net Profit (bn won)
361
272
258
+60.5%
179
339
225
2017
2018
2019
3Q19
3Q20
(Cumulative)
(Cumulative)
Major non-recurring items
Note) Major non-recurring items (after tax)
3Q20(Cumulative): PEF related losses including TRS valuation losses (W29bn), Provisioning for receivables from brokerage business(W14bn)
Provisioning for potential reimbursement related to investors' losses in PEF(W21bn), Disposal gain on overseas real estate investment(W30bn), Gains on sale of loans(W11bn)
552
625
580
680
56
37
48
68
426
215
215
216
267
56
353
186
288
245
428
184
2017
2018
2019
3Q19
3Q20
(Cumulative)
(Cumulative)
Brokerage
IB
Sales of Financial Products, etc.
Retail AUM (tn won)
94
83
74
69
61
64
31
30
29
28
15
20
46
44
45
41
53
63
2017
2018
2019
'20.3
'20.6
'20.9
Brokerage
WM
Assets under WM
tn won, %
2020.9
2019
2018
3.2%
Bonds
18.0
14.1
10.3
21.8%
Trusts
6.9
6.1
4.2
Funds
5.7
6.7
4.1
ELS/DLS
1.0
1.5
1.8
57.0%
18.0%
Total
31.6
28.4
20.4
Bonds
Trusts
Funds
ELS/DLS
14
IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Insurance
Profitability Overview 1)
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Direct Premium Written
8,195.8
7,668.7
6.9
2,728.8
2,729.5
0.0
Net Premium Earned
7,109.6
6,858.5
3.7
2,405.4
2,369.4
1.5
Loss Ratio
85.4%
84.8%
0.6%p
85.2%
84.4%
0.8%p
Expense Ratio
20.8%
22.4%
-1.6%p
21.1%
20.7%
0.4%p
Underwriting Profit
-442.2
-495.0
N.A.
-152.0
-120.1
N.A.
Investment Income
647.5
736.0
-12.0
198.2
193.5
2.4
Profit for the Period 2)
186.6
233.9
-20.2
42.6
66.8
-36.2
RBC Ratio
187.9%
193.7%
-5.8%p
187.9%
187.7%
0.2%p
Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests
Net Profit & EV 1)(bn won)
7,937
330
6,807
6,607
2624,712
Direct Premium Written
bn won
3Q20
2019
2018
(Cumulative)
Long Term
5,437.7
7,083.3
6,883.2
Protection
4,986.5
6,361.5
6,014.0
Savings
451.2
721.8
869.2
Auto
1,934.4
2,206.7
2,035.3
General
823.7
982.8
931.7
Total
8,195.8
10,272.8
9,850.2
Asset Portfolio
bn won
2020.9
2019
2018
Cash & Due
294.8
559.2
746.1
Securities
22,515.8
20,633.0
18,741.2
Bonds
12,510.8
10,715.7
9,871.9
F/C Securities
3,544.6
4,243.2
4,365.1
Equities, etc.
6,460.4
5,674.1
4,504.1
Loans
6,836.8
6,872.1
6,873.7
Real Estate
923.8
943.1
968.0
Total
30,571.2
29,007.4
27,329.0
10.1%
23.6%
5.5%60.8%
LT(Protection) LT(Savings)
Auto General
3.0%
1.0%
22.4%
40.9%
21.1%
11.6%
Cash & Due
Bonds
F/C Securities
Equities, etc.
Loans
Real Estate
3,152
234
234
187
88.3
Loss Ratio (%)
92.0
88.0
86.1
97.4
88.1
2017
2018
2019
3Q19 2)
3Q20 2)
(Cumulative)
(Cumulative)
Net Profit
EV
83.4
84.2
82.2
84.0
80.7
71.3
71.0
2017
2018
86.6
85.1
84.7
75.7
74.9
2019 1Q20
84.4 85.2 85.2
84.2 84.6
82.0
2Q20 3Q20
Note 1) EVs are based on identical assumptions sets
Total
Long Term
Auto
General
2) EVs are figures as of the end of September of each year
15
IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Kookmin Card
Profitability Overview 1)
Card Transaction Volume (tn won)
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Operating Revenue
2,979.1
2,908.4
2.4
992.5
997.7
-0.5
Card
2,611.2
2,571.1
1.6
874.2
876.5
-0.3
Installment & Lease Financing
80.1
53.5
49.7
30.8
25.3
21.7
Others
287.8
283.8
1.4
87.5
95.9
-8.8
Operating Expense
1,984.1
1,974.1
0.5
677.5
656.5
3.2
Interest Expense
272.1
260.9
4.3
92.6
88.6
4.5
Commissions & Other Expenses
1,712.0
1,713.2
-0.1
584.9
567.9
3.0
Gross Operating Income
995.0
934.3
6.5
315.0
341.2
-7.7
G&A Expenses
349.3
306.0
14.2
120.6
117.0
3.1
Provision for Credit Losses
296.9
324.8
-8.6
68.9
111.9
-38.4
Net Operating Profit
348.8
303.5
14.9
125.5
112.3
11.8
Net Non-Operating Profit
-3.3
-4.3
N.A.
-1.5
-1.0
N.A.
Profit for the period 2)
255.2
251.0
1.7
91.4
81.7
11.9
Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests
Net Profit (bn won)
355
317
297
317
287
255
251
2015
2016
2017
2018
2019
3Q19
3Q20
(Cumulative) (Cumulative)
33.0
35.0
36.0
36.7
34.1
35.7
36.4
8.9
8.3
8.6
9.0
8.2
8.4
8.7
24.7
26.4
27.0
27.8
25.9
27.3
27.7
1Q19
2Q19
3Q19
4Q19
1Q20
2Q20
3Q20
Card Assets
Credit Card
Check Card
bn won
2020.9
2019
2018
17.9%
Credit Card
18,387.8
18,591.9
17,309.3
Credit Sales
11,917.5
12,038.2
11,110.0
[Installments]
5,215.9
5,127.4
4,793.7
24.2%
53.2%
5,411.8
5,345.4
4,942.2
Card Loans
Cash Advance
1,058.5
1,208.2
1,257.1
4.7%
Others
4,002.9
3,312.6
2,154.5
Credit Sales
Cash Advance
Total
22,390.7
21,904.5
19,463.8
Card Loans
Factoring, etc.
Funding
bn won
2020.9
2019
2018
5.1%
10.3%
Borrowings
846.3
1,129.2
620.1
Debentures
14,058.4
13,353.2
12,083.6
ABS
1,706.1
1,460.3
970.0
Total
16,610.8
15,942.7
13,673.7
84.6%
Borrowings
Debentures
ABS
16
IV. 3Q20 Financial Highlights of Major Subsidiaries _ Prudential Life Insurance
Profitability Overview 1)
bn won, %
3Q20
3Q19
YoY
3Q20
2Q20
QoQ
(Cumulative)
(Cumulative)
Net Interest Income
27.2
-
-
27.2
-
-
Net Fee & Commission Income
-0.8
-
-
-0.8
-
-
Other Operating Profit
21.4
-
-
21.4
-
-
Gross Operating Income
47.8
-
-
47.8
-
-
G&A Expenses
31.9
-
-
31.9
-
-
Provision for Credit Losses
0.3
-
-
0.3
-
-
Net Operating Profit
15.6
-
-
15.6
-
-
Net Non-Operating Profit
0.0
-
-
0.0
-
-
Profit for the Period 2)
11.1
-
-
11.1
-
-
RBC Ratio
486.4%
-
-
486.4%
-
-
Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests
Net Profit 1)(bn won)
242
176
164
146
141
2017
2018
2019
3Q19
3Q202)
(Cumulative)
(Cumulative)
Note 1) Based on financial statements of Prudential Life Insurance, for better comparison purposes, which differs from the financial results for group reporting contained in Profitability Overview
2) Including disposal gain on private placement bonds W143bn(after tax)
New Business APE (Annualized Premium Equivalent)
0.2%
bn won
3Q20
2019
2018
(Cumulative)
Protection
87.6
129.7
115.7
47.0%
Annuities
78.1
122.6
91.9
Savings
0.3
0.6
1.9
52.8%
Total
166.0
252.9
209.6
Invested Assets
Protection
Annuities
Savings
bn won
2020.9
2019
2018
5.3% 0.5%
3.4%
Cash & Due
595.5
241.4
67.6
1.7%
Securities
15,958.5
15,091.5
13,814.2
4.4%
Bonds
14,878.6
14,197.6
13,168.8
F/C Securities
779.7
585.7
268.5
Equities, etc.
300.2
308.2
376.9
Loans
938.5
995.2
956.6
84.6%
Real Estate
91.6
93.2
95.2
Total
17,584.1
16,421.3
14,933.6
Cash & Due
Bonds
F/C Securities
Equities, etc.
Loans
Real Estate
Mortality Margin & Loss Ratio (%, bn won)
58.3
55.4
54.4
53.6
52.3
40.5
147
157
168
38
54
41
2017
2018
2019
1Q20
2Q20
3Q20
Mortality Margin
Loss Ratio
17
V.Appendix _ Overview of Group Subsidiaries 1) (3Q20)
bn won
Ownership
Total Assets
Shareholder's Equity
Profit for the Period
ROA2)
ROE2)
KB Kookmin Bank
100.0%
437,038.8
29,512.7
1,882.4
0.61%
8.67%
KB Securities
100.0%
55,843.0
4,998.3
338.5
0.84%
9.47%
KB Insurance
100.0%
38,082.9
4,114.1
186.6
0.67%
6.23%
KB Kookmin Card
100.0%
24,292.3
4,201.9
255.2
1.46%
8.33%
Prudential Life Insurance
100.0%
24,408.3
2,535.9
11.1
1.50%3)
10.93%3)
KB Asset Management
100.0%
413.3
205.4
39.4
14.01%
27.78%
KB Capital
100.0%
12,326.6
1,410.2
114.8
1.32%
12.17%
KB Life Insurance
100.0%
10,213.7
631.4
9.2
0.12%
1.97%
KB Real Estate Trust
100.0%
420.4
318.3
55.5
18.94%
24.79%
KB Savings Bank
100.0%
1,700.7
222.0
13.2
1.17%
8.14%
KB Investment
100.0%
850.8
231.2
16.5
2.78%
10.11%
KB Data Systems
100.0%
42.7
20.8
0.1
0.31%
0.63%
KB Credit Information
100.0%
28.3
15.2
0.3
1.42%
2.67%
Note 1) Based on each subsidiary's financial statements for group reporting 2) Annualized 3) Based on separate financial statements of Prudential Life Insurance
18
V.Appendix _ Condensed Income Statement by Subsidiaries
bn won
Group
3Q20(Cumulative)
KB Kookmin
KB Securities
KB Insurance
KB Kookmin
Prudential Life
KB Asset
KB Capital
KB Life
Others 1)
Bank
Card
Insurance
Management
Insurance
Net Interest Income
7,143.4
4,992.9
377.1
464.5
938.9
27.2
2.2
241.8
109.6
-10.8
Net Fee & Commission Income
2,170.5
813.2
680.1
-127.7
273.4
-0.8
92.9
380.1
-11.2
70.5
Other Operating Profit
-67.3
-9.9
-6.5
525.2
-217.3
21.4
2.2
-293.2
-36.9
-52.3
Gross Operating Income
9,246.6
5,796.2
1,050.7
862.0
995.0
47.8
97.3
328.7
61.5
7.4
G&A Expenses
4,646.2
2,815.2
588.1
622.4
349.3
31.9
43.2
82.3
50.5
63.3
Provision for Credit Losses
754.3
333.4
23.5
-6.3
296.9
0.3
0.0
93.5
-0.9
13.9
Net Operating Profit
3,846.1
2,647.6
439.1
245.9
348.8
15.6
54.1
152.9
11.9
-69.8
Net Non-Operating Profit
120.4
-69.2
26.7
11.0
-3.3
0.0
-0.5
1.5
0.0
154.2
Profit for the Period
2,925.6
1,904.1
338.5
186.6
254.9
11.1
39.4
116.4
9.2
65.4
Profit attributable to
2,877.9
1,882.4
338.5
186.6
255.2
11.1
39.4
114.8
9.2
40.7
controlling interests
bn won
Group
3Q19(Cumulative)
KB Kookmin
KB Securities
KB Insurance
KB Kookmin
Prudential Life
KB Asset
KB Capital
KB Life
Others 1)
Bank
Card
Insurance
Management
Insurance
Net Interest Income
6,868.6
4,747.4
400.7
464.8
915.1
-
0.7
232.6
121.5
-14.2
Net Fee & Commission Income
1,716.5
846.7
426.3
-114.4
173.2
-
85.1
247.0
-12.8
65.4
Other Operating Profit
49.1
-96.2
5.9
588.1
-154.0
-
5.7
-185.3
-37.9
-77.2
Gross Operating Income
8,634.2
5,497.9
832.9
938.5
934.3
-
91.5
294.3
70.8
-26.0
G&A Expenses
4,456.7
2,721.0
556.4
644.2
306.0
-
42.2
78.9
49.0
59.0
Provision for Credit Losses
459.9
55.5
10.0
-15.1
324.8
-
0.0
82.2
-2.4
4.9
Net Operating Profit
3,717.6
2,721.4
266.5
309.4
303.5
-
49.3
133.2
24.2
-89.9
Net Non-Operating Profit
67.3
3.1
43.5
14.1
-4.3
-
-0.4
1.5
0.1
9.7
Profit for the Period
2,778.1
2,006.7
224.7
234.2
251.0
-
35.9
102.3
18.2
-94.9
Profit attributable to
2,777.1
2,006.7
224.7
233.9
251.0
-
35.9
100.7
18.2
-94.0
controlling interests
Note 1) Includes financial results of the holding company, the other subsidiaries and adjustment for consolidation
KB Financial Group Inc. published this content on 22 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2020 08:04:08 UTC
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