[Featured Stock] KB Financial, Up 3% on Strong Earnings Expectations Despite Dividend Cut

[Asia Economy Reporter Minji Lee] KB Financial Group is on the rise. Although the dividend payout ratio has decreased to around 20% due to financial authorities' recommendations, expectations that the company will deliver strong earnings this year following last year's performance appear to have had a positive impact.

According to the Korea Exchange on the 5th, KB Financial Group traded at 43,550 KRW, up 3.6% from the previous trading day. KB Financial recorded a net profit of 3.4552 trillion KRW last year, an increase of 4.3% compared to the previous year, marking four consecutive years of net profits exceeding 3 trillion KRW.

In the securities industry, it is expected that after the government's recommendation period to refrain from dividends ends in June, KB Financial will pursue policies such as interim dividends to enhance shareholder value and recover its stock price. Additionally, it is anticipated that the company will continue to show earnings growth this year based on the solid performance of its subsidiaries.

Kim In, a researcher at BNK Investment & Securities, said, "The controlling shareholder net profit for the first quarter of this year is expected to exceed 1 trillion KRW. Despite the decline in dividend payout ratio due to government recommendations, considering future share buybacks and cancellations, implementation of interim dividends, and the possibility of increasing the dividend payout ratio this year as COVID-19 eases, shareholder-friendly policies remain effective."