# KB Financial Group (KB) Sector: Banks | Field | Value | |---|---| | Price | $114.75 | | Market cap | $41B | | Intrinsic value source | AI estimate | | Data as of | 2026-11-12 | | Next earnings | 2027-02-04 (estimate) | Analysts: Very bullish Picks: Research only Discount category: Close to intrinsic value ## In short The market prices KB Financial Group close to the AI estimate on doubts that it can keep its profit after the charges of 2025, and steady profit with dividends and buybacks under the new chairman can lift its value. ## Themes and gap - Themes: Interest rates (interest-rates), Regulation and courts (regulation-legal), New management (management-change) - Gap type: Slow (slow) - Why: Only several quarters of steady profit without new compensation charges, with dividends, buybacks and a new chairman who keeps the plan, can change how the market values the group. ## About KB Financial Group Inc. (KB Financial Group) is one of the largest financial holding companies in South Korea by assets. Its main unit is Kookmin Bank, one of the leading commercial banks in Korea. Other units give credit cards, securities brokerage (KB Securities), non-life and life insurance, asset management and banking abroad. At December 31, 2025, the group had consolidated total assets of KRW 798 trillion, deposits of KRW 462 trillion, total equity of KRW 61 trillion, 771 branches and about 39.0 million retail customers. Profit attributable to shareholders of the parent company was KRW 1,907.5 billion in Q3 2026 and KRW 5,792.1 billion in the first nine months. Jong Hee Yang is Chairman and Chief Executive Officer, and his term ends on November 20, 2026. The American depositary shares (ADSs) trade on the New York Stock Exchange in US dollars, and each ADS represents one common share. The common shares trade on the Korea Exchange in Korean won. ## Thesis The market prices KB Financial Group close to the AI estimate, and it must decide which level of profit is normal. Q4 2025 was weak, with profit of about KRW 711.4 billion, because the group booked KRW 744.8 billion of voluntary compensation for Hang Seng China Enterprises index-linked products and more provisions. The last three quarters were near KRW 1.9 trillion each. The group also faces a change of chairman, a competition fine on its main bank, and a won that changes the dollar value of an ADS. The group pays a quarterly dividend of KRW 1,167 per share and is buying back KRW 700 billion of shares. For the price to hold, three things must be true. Profit must stay near the Q3 level with no new compensation charge. The capital ratio must stay well above the regulatory minimum while the group pays dividends and buys back shares. The new chairman must keep the plan for shareholder returns. The next tests are the extraordinary general meeting on November 20, 2026, the end of the buyback on December 16, 2026 and the Q4 2026 report in February 2027. ## Checkpoints - Nov 20, 2026: Extraordinary general meeting: new Chairman. Status: Pending. Watch: Shareholders approve Jae Keun Lee as executive director, the step to Chairman and Chief Executive Officer, and this passes; a rejection fails. - Dec 16, 2026: End of the KRW 700 billion share buyback. Status: Pending. Watch: The group finishes the purchases of KRW 700 billion and cancels the shares, and this passes; a stop or a delay fails. - Feb 4, 2027 (estimate): Q4 2026 results: profit without new charges. Status: Pending. Watch: Profit attributable to shareholders of the parent company near the Q3 level of KRW 1,907.5 billion, with no large new compensation charge, passes; a large new charge fails. ## Valuation The intrinsic value for KB Financial Group is an AI estimate from November 12, 2026. It is not an analyst's value. An AI research agent calculated it from KB's filings with the SEC. The values are per American depositary share (ADS) in US dollars. One ADS represents one common share (Form 20-F for 2025, filed April 28, 2026). The method is a multiple of profit for 2027. The profit of a bank is after its interest cost, so the estimate makes no debt adjustment. KB reports in Korean won under K-IFRS. The preliminary Q3 2026 results (6-K, October 29, 2026) give profit attributable to shareholders of the parent company of KRW 1,907.5 billion for Q3 and KRW 5,792.1 billion for nine months, against KRW 5,121.7 billion a year earlier. The Form 20-F gives profit attributable to shareholders of the parent company of KRW 5,833.2 billion for 2025. After KRW 202.4 billion of coupons on hybrid securities, profit for ordinary shareholders was KRW 5,630.8 billion, and diluted earnings per share were KRW 15,261. Q4 2025 was weak, at about KRW 711.4 billion (2025 less nine months of 2025). The 20-F shows KRW 744.8 billion of expenses for voluntary compensation on Hang Seng China Enterprises index-linked products and KRW 333.0 billion of other provisions for equity-linked securities, loan-to-value penalties and other matters in 2025. At December 31, 2025, equity attributable to shareholders of the parent company was KRW 59,048.2 billion, including KRW 4,359 billion of hybrid securities, and 358,587,722 common shares were outstanding. The Common Equity Tier 1 capital ratio was 13.82%. The dividend notice (6-K, October 29, 2026) gives a quarterly dividend of KRW 1,167 per share and 346,973,821 shares outstanding, and the estimate uses this count. The update on the share buyback (6-K, October 26, 2026) shows that KB bought 3,960,000 shares for KRW 698.2 billion by October 23, 2026, and the estimate adds no further buyback. The profit levels, the multiples and the exchange rate are assumptions. The estimate assumes 1,345 won per US dollar, close to the market rate of early November 2026. The cases give the profit for ordinary shareholders in 2027. The low case assumes KRW 6,300 billion at 6.0 times, because new compensation charges, a lower interest margin or higher credit costs return. It gives KRW 108,942 per share and $81.00 per ADS. The base case assumes KRW 7,300 billion at 8.0 times, which is a little below the nine-month pace of 2026 after the coupons on hybrid securities. It gives KRW 168,312 per share and $125.14 per ADS. The base value is about 1.10 times book value per ordinary share of about KRW 152,500 at December 31, 2025, and the base profit is a return of about 13% on that equity. The high case assumes KRW 8,000 billion at 10.0 times, because profit grows and returns to shareholders rise. It gives KRW 230,565 per share and $171.42 per ADS. The estimate assumes weights of 25%, 50% and 25%. The weighted intrinsic value is $125.67 per ADS. As of 2026-11-12. Sources: - https://www.sec.gov/Archives/edgar/data/1445930/000119312526183398/d79770d20f.htm - https://www.sec.gov/Archives/edgar/data/1445930/000119312526436880/d182035d6k.htm - https://www.sec.gov/Archives/edgar/data/1445930/000119312526436887/d183019d6k.htm - https://www.sec.gov/Archives/edgar/data/1445930/000119312526430978/d176648d6k.htm ## Balance sheet KB Financial Group had consolidated total assets of KRW 797.9 trillion, total deposits of KRW 462 trillion and total equity of KRW 60.8 trillion at December 31, 2025. Equity attributable to shareholders of the parent company was KRW 59.0 trillion, including KRW 4.4 trillion of hybrid securities. The Common Equity Tier 1 capital ratio was 13.82%, the Tier 1 ratio was 15.21% and the total capital ratio was 16.20%, against minimums of 9.0%, 10.5% and 12.5%. The net interest margin was 1.95% in 2025. A bank funds its loans mostly with deposits, so a net debt figure does not describe it. The Q3 2026 release has no capital ratio. By October 23, 2026, the group held 7,541,623 treasury shares and planned to cancel them. As of 2025-12-31. Sources: - https://www.sec.gov/Archives/edgar/data/1445930/000119312526183398/d79770d20f.htm - https://www.sec.gov/Archives/edgar/data/1445930/000119312526430978/d176648d6k.htm ## Dividends - The dividend data after 2025-08-08 is missing. - Latest ex-dividend date: 2025-08-08, $0.657 per share Dividends per share by year: 2016: $0.00, 2017: $0.00, 2018: $0.00, 2019: $0.00, 2020: $0.00, 2021: $0.00, 2022: $2.236, 2023: $1.163, 2024: $2.833, 2025: $1.88. Source: company filings and market data, read on 2026-11-13. ## Recent events - 2026-10-29: KB Financial Group released preliminary Q3 2026 results. Profit attributable to shareholders of the parent company was KRW 1,907.5 billion, up 13.1% from a year earlier and down 4.3% from Q2. For nine months it was KRW 5,792.1 billion, up 13.1%. Kookmin Bank earned KRW 1,350.9 billion in Q3, and KB Securities earned KRW 272.6 billion. The figures are under review by the auditors and can change. - 2026-10-29: The board declared a quarterly cash dividend of KRW 1,167 per common share, for a total of about KRW 404.9 billion. The record date is November 12, 2026, and the company expects to pay within one month. - 2026-10-28: KB Financial Group gave notice of an extraordinary general meeting on November 20, 2026. Shareholders will vote on Jae Keun Lee as executive director. He is the nominee for the next Chairman and Chief Executive Officer, and his term would run from November 21, 2026 to November 20, 2029. He has a 34-year career at the group and is now Chief Business Officer of Global, Wealth Management and Small and Medium Enterprise business. - 2026-10-26: The group said that it bought 3,960,000 shares for KRW 698.2 billion from July 23 to October 23, 2026, under a trust agreement of KRW 700 billion. It held 7,541,623 treasury shares, which is 2.13% of its 354,687,734 issued shares. - 2026-07-23: The board agreed to buy KRW 700 billion of treasury shares through a trust with Samsung Securities, until December 16, 2026, and to cancel them. The group also released its first half results, with profit attributable to shareholders of the parent company of KRW 3,884.6 billion. - 2026-04-28: KB Financial Group filed its Form 20-F for 2025. Profit attributable to shareholders of the parent company was KRW 5,833.2 billion, and the Common Equity Tier 1 capital ratio was 13.82% at December 31, 2025. The filing says that the Korea Fair Trade Commission fined four banks KRW 272 billion in February 2026, including KRW 69.7 billion on Kookmin Bank, and that the banks filed a lawsuit in March 2026. ## Latest news and filings - Next earnings: 2027-02-04 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-04-28 | 20-F | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | | https://www.sec.gov/Archives/edgar/data/1445930/000119312526183398/d79770d20f.htm | | 2025-04-25 | 20-F | Annual report for the period ended Dec 31, 2024 | 2024-12-31 | | https://www.sec.gov/Archives/edgar/data/1445930/000119312525094961/d906154d20f.htm | Every filing on SEC EDGAR (CIK 1445930): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001445930&type=&dateb=&owner=include&count=40 ## Risks - High: Korean household debt and housing credit can hurt asset quality. The group is the largest private lender of mortgages in Korea, and its card unit lends to consumers. Higher interest rates, a weak economy or new government rules can raise delinquencies and credit costs. - High: Compensation and legal costs can return. In 2025, the group booked KRW 744.8 billion for voluntary compensation on Hang Seng China Enterprises index-linked products and KRW 333.0 billion of other provisions. Kookmin Bank appeals a fine of KRW 69.7 billion, and a Russian bank sued it in Moscow for about US$109.2 million of frozen funds. The court ordered Kookmin Bank to return the principal in December 2025, and the bank appealed in January 2026. - Medium: Lower interest rates can cut margin. The net interest margin fell to 1.95% in 2025 from 2.02% in 2024, after the Bank of Korea lowered its policy rate. - Medium: A new Chairman and Chief Executive Officer starts after November 20, 2026. A change in plan for shareholder returns or for growth abroad and in insurance can move the price. - Medium: The ADS price is in US dollars and the profit is in Korean won. A weaker won lowers the dollar value of profit and dividends. ## Links - Page: https://picks.utilarium.app/company/KB/ - History of changes: https://picks.utilarium.app/company/KB/history/ - JSON with full history: https://picks.utilarium.app/data/company/KB.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.