Kookmin Bank

Strong market position as one of the largest banks in Korea Strong retail banking business Adequate capitalization Potential pressure on asset quality from high household leverage in Korea Moderate profitability by international standards The stable outlook on Kookmin Bank reflects our view that the bank will maintain its adequate capitalization backed by moderate growth appetite over the next 18-24 months. The bank's loan growth will likely moderate considering its focus on risk management and maintaining asset quality as the pandemic gradually recedes. This is after some pick-up in 2020 driven by higher loan demands from corporates and households affected by the COVID-19 pandemic. We believe the bank's efforts over the past several years to tighten underwriting standards, write off bad

...Outlook: Stable The stable outlook on Kookmin Bank reflects our view that the bank will maintain its adequate capitalization backed by moderate growth appetite over the next 18-24 months. The bank's loan growth will likely moderate considering its focus on risk management and maintaining asset quality as the pandemic gradually recedes. This is after some pick-up in 2020 driven by higher loan demands from corporates and households affected by the COVID-19 pandemic. We believe the bank's efforts over the past several years to tighten underwriting standards, write off bad loans, and build in additional provisioning for weak corporate sectors will likely support its largely stable asset quality and credit costs. In addition, we expect Kookmin to maintain its stable funding and liquidity profile backed by its solid nationwide customer base....

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