[Special Stock] KB Financial Shows Strength on Expectations of Additional Share Buybacks and Cancellation in Second Half

KB Financial's stock price is on the rise. Expectations for additional share buybacks and cancellations in the second half appear to be influencing the stock price.

KB Financial Group, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

As of 9:49 a.m. on the 4th, KB Financial is trading at 87,800 KRW, up 4.03% from the previous day.

Jung Kwang-myung, a researcher at DB Financial Investment, said, "The Common Equity Tier 1 (CET1) ratio in the first quarter was 13.42%, the highest level among banks, and a similar CET1 ratio is expected in the second quarter. Since the company is maintaining a stable capital ratio in the mid-13% range, which is its target, achieving a total shareholder return ratio of 40% this year, expanded compared to last year, seems fully achievable."

Researcher Jung added, "The total shareholder return ratio for last year based on the fiscal year was 37.5%. Considering the expected total shareholder return ratio of 40% for this fiscal year, dividends of 1.2 trillion KRW, and share buybacks of 320 billion KRW already conducted, additional share buybacks and cancellations of about 400 billion KRW are expected in the second half. With approximately 4% earnings growth this year and an increase in the total shareholder return ratio based on a high capital ratio, a significant expansion in shareholder returns is anticipated."