Bulletin: KB Financial Group's Business Diversity To Support Credit Strength

HONG KONG (S&P Global Ratings) Feb. 5, 2025--KB Financial Group Inc.'s (KBFG) diversity across banking and nonbanking businesses will continue to underpin its earnings resilience. We expect KBFG (A/Stable/A-1) to prioritize risk management over high growth over the next 18-24 months. This is due to still-high domestic interest rates and heightened financial-market volatility, exacerbated by uncertain domestic politics and global trade tensions. The Korea-based financial group will likely maintain moderate asset growth of 5%-6% annually and broadly stable profitability. That should keep its capitalization adequate over the period. We believe KBFG will only proceed with its higher shareholder returns policy when it maintains a sufficient regulatory capital buffer. KBFG and its main operating subsidiary, Kookmin Bank (A+/Stable/A-1), had Basel III

...February 5, 2025 HONG KONG (S&P Global Ratings) Feb. 5, 2025--KB Financial Group Inc.'s (KBFG) diversity across banking and nonbanking businesses will continue to underpin its earnings resilience. We expect KBFG (A/Stable/A-1) to prioritize risk management over high growth over the next 18-24 months. This is due to still-high domestic interest rates and heightened financial-market volatility, exacerbated by uncertain domestic politics and global trade tensions. The Korea-based financial group will likely maintain moderate asset growth of 5%-6% annually and broadly stable profitability. That should keep its capitalization adequate over the period. We believe KBFG will only proceed with its higher shareholder returns policy when it maintains a sufficient regulatory capital buffer. KBFG and its main operating subsidiary, Kookmin Bank (A+/Stable/A-1), had Basel III Tier 1 capital ratios of 15.1% and 14.9% as of end-2024, respectively. These were well above the minimum regulatory requirements....

Bulletin