KB Financial Group Hits New Highs Daily on Strong Earnings, Policy Momentum, and Institutional Buying

Record Highs for Two Consecutive Days, Firmly Above 130,000 Won
Up 12% This Month as Institutions Drive the Rally
Third-Quarter Results Beat Expectations, Boosted by Policy Momentum

KB Financial Group has continued its strong upward trend this month, hitting new record highs day after day. This surge is attributed to solid earnings, policy momentum, and sustained institutional buying, all of which have driven the stock price higher.

According to the Korea Exchange on November 12, KB Financial Group closed at 130,700 won on the previous day, up 1.32%. During the session, it climbed to 133,500 won, setting a new all-time high for the second consecutive day.

Starting the year in the 80,000 won range, KB Financial Group showed strength in the first half, buoyed by expectations for the new government. In July, it surpassed the 120,000 won mark for the first time. However, after July, the stock stalled and traded sideways in the 110,000 won range.

This month, the stock has broken out of its sideways trend and drawn a clear upward curve. KB Financial Group has risen 12.09% so far this month, significantly outperforming the KOSPI, which declined 0.03% over the same period.

This strong performance is supported by solid earnings, policy momentum, and robust demand. KB Financial Group's cumulative net profit for the first three quarters of this year reached 5.1217 trillion won, up 16.6% year-on-year. This already exceeds last year's annual net profit of 5.0782 trillion won. Baek Doosan, a researcher at Korea Investment & Securities, commented, "KB Financial Group's third-quarter controlling interest net profit was 1.686 trillion won, beating the consensus (average securities firm forecast) by 6%. This was due to stronger-than-expected interest income and a favorable credit loss ratio. The bank's quarterly net interest margin (NIM) rose by 1 basis point (1bp = 0.01 percentage point) from the previous quarter, and won-denominated loans increased by 0.9% during the same period, resulting in solid interest income. The group's quarterly credit loss ratio fell to 0.30%, and even after accounting for provision reversals, the normalized credit loss ratio stabilized at the low 0.4% range."

Consistent institutional buying has also supported the stock's rise. Institutions have made net purchases of KB Financial Group shares totaling 287.636 billion won this month, making it the second most purchased stock after SK Hynix. Over the past 20 trading days, institutions recorded net buying on all but one day.

Policy momentum, which had subsided after July, has revived, adding further impetus to the rally. In July, the government announced a plan to lower the maximum separate taxation rate (including local taxes) on dividend income from investments in high-dividend listed companies from 49.5% to 38.5%. However, this fell short of market expectations and acted as a drag on financial stocks. Recently, however, the government and ruling party have decided to further ease the separate taxation of dividend income to promote dividend payouts in the stock market compared to the original government proposal. As a result, the maximum separate taxation rate on dividend income is expected to be lowered to around 25%, as proposed by ruling party lawmakers.

Expectations for aggressive shareholder returns are also anticipated to drive future stock price gains. Kim Jiyeong, a researcher at Kyobo Securities, stated, "Based on solid cumulative results through the third quarter and expected annual profit improvement, and given that KB Financial Group maintains the industry's highest level of capital adequacy, expectations for more aggressive shareholder returns will likely drive the stock price higher."

Jung Taejun, a researcher at Mirae Asset Securities, said, "KB Financial Group's controlling interest net profit next year is expected to increase by 11.4% year-on-year. The Common Equity Tier 1 (CET1) ratio is also projected to remain stable in the mid-to-high 13% range as concerns over the weak won and fines subside. Accordingly, the shareholder return rate will once again exceed 50%, reaching 53.8%, and the shareholder return yield is expected to reach 9.1%," he predicted.

This content was produced with the assistance of AI translation services.