20,000 Shares Repurchased on the Market After February 5 Earnings Announcement
First Simultaneous Share Purchase by All Group Executives
On February 5, the CEOs of all subsidiaries and holding company executives of KB Financial Group demonstrated a strong commitment to enhancing corporate value by purchasing approximately 20,000 shares of their own stock on the market following the earnings announcement. This is the first time that the group’s management has simultaneously engaged in share repurchases.
Specifically, 12 subsidiary CEOs purchased about 13,000 shares, while 13 holding company executives acquired approximately 7,000 shares.
KB Financial Group has consistently pursued leading shareholder return policies, including being the first in the industry to conduct share repurchases and cancellations, implementing a quarterly dividend policy, and introducing a quarterly equal dividend system based on total dividend amount. Additionally, in October 2024, the group announced a "Sustainable Value-Up Plan" and introduced a "Value-Up Framework" linking the Common Equity Tier 1 (CET1) ratio with shareholder returns, which received positive market evaluations.
Based on its corporate value enhancement plan, KB Financial Group is establishing its 2025 management plan, redesigning key performance indicators (KPIs), and reorganizing its management system in line with the value-up paradigm. This share repurchase is interpreted as a demonstration of responsible management, with all executives prioritizing corporate value enhancement and reflecting it in their management practices.
Going forward, KB Financial Group plans to continue capital management focusing on the "sustained upward trend of profitability and shareholder returns." At the earnings announcement on February 5, the group revealed a shareholder return plan totaling KRW 1.76 trillion, including a CET1 ratio of 13.51% as of the end of December 2024 and KRW 520 billion in share repurchases and cancellations in the first half of the year. Furthermore, capital exceeding a CET1 ratio of 13.5% in the second half will also be used as additional shareholder return resources.
A KB Financial Group official stated, "As disclosed in last year’s corporate value enhancement plan, KB Financial aims for the highest total shareholder return rate in the industry," adding, "By managing the CET1 ratio through increased net income in the first and second quarters and risk-weighted assets (RWA) management, and conducting additional shareholder returns semiannually, we plan to achieve the highest total shareholder return rate in the industry."
Regarding the possibility of increased loan loss provisions, the official added, "Although recent soundness indicators have improved, since sufficient loan loss provisions have already been accumulated, the loan loss provision expense ratio (CCR) for 2025 is expected to be managed at the 2024 level (43 basis points)."
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