The following is a summary of the KB Financial Group Inc. (KB) Q1 2024 Earnings Call Transcript:
Financial Performance:
KB Financial Group (KBFG) reported a Q1 2024 net income of KRW1,049.1 billion, a decline of 30.5% YoY, largely due to provisions for customer compensation costs related to ELS issues.
Credit loss provisions stand at KRW428.4 billion, down 35.9% YoY and 68.9% QoQ, resulting in a credit cost ratio of 38 basis points.
The company's Cost-Income Ratio (CIR) displayed a decreasing tendency, positioned at 36.9%.
Net interest income for the period was KRW3,151.5 billion, representing an increase of 11.6% YoY.
Business Progress:
KBFG has unveiled a new shareholder return strategy, detailing consistent quarterly dividends based on a total dividend policy.
The firm has a goal to maintain its Core Equity Tier 1 (CET1) ratio at a minimum of 13.5% within the year to handle possible future economic uncertainties.
Following provisions made in 2023, KBFG plans to control large spikes in credit costs amidst ongoing economic unpredictability.
KBFG is strategizing to manage loan growth speed flexibly, aiming to balance profitability and asset quality considering the economic environment and household debt situations.
The firm continues to prioritize consumer and corporate loan growth, while ensuring asset quality stability.
More details: KB Financial IR
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