Oct 29, 2026 earnings call — Q3 results and shareholder returns
KB reported Q3 net profit of KRW 1,907.5 billion.
Revenue $3.5B (est $3.5B) · EPS $3.93 (est $3.66)
Key quotes
"However, from Q4, the base rates hikes from July and August will be gradually reflected in the repricing of our loan assets."
"Regarding shareholder return policies that you asked about, for share buyback, it has all been completed."
"The group's net fee income has exceeded KRW 1 trillion for four consecutive quarters, demonstrating a solid fee income base that has leveled up."
Analyst Q&A 8
Margin outlook and share buybacks
Q (Tae-jun Jeong · Korea Investment &): The analyst asked about the future margin outlook and about new shareholder return plans after the completed KRW 700 billion buyback.
A: Management said Q3 margin fell by 2 basis points versus the prior quarter and explained the drivers: higher market rates, deposit outflows, and replacement by time deposits that raised funding costs. They said repricing of asset yields and household loan indexes should help, but Q4 visibility is not easy and funding timing will matter.
Why margin moved and funding plan
Q (Gi-won Seo): The analyst asked why margin changed and how the bank will manage funding and maturities going forward.
A: The CFO said market rates rose and repricing expanded, while core deposit outflows were replaced by institutional and corporate time deposits, increasing funding burden. He said asset repricing and COFIX increases should raise yields, and the bank will focus on managing funding maturities and core deposits efficiently.
Credit costs and deposit insurance
Q (Jaewoong Won · HSBC): The analyst asked for next year's expected credit cost ratio and asked about the impact of deposit insurance changes on the insurance business.
A: Bank-side there has been no big change yet, but on the insurance side the regulator discussions are ongoing and the planned increase is expected to be reduced. Management warned the insurance side will be negatively impacted and they are monitoring consultations with regulators closely.
Deposit insurance impact on KB Insurance
Q (Speaker 5): What is the expected impact of higher deposit insurance on KB Insurance's capital and reserves?
A: Management said the increase would negatively affect CSM and K-ICS, but they are negotiating with regulators and expect the final increase to be smaller. They said they will monitor the situation closely as the rules are finalized.
Non-life and life insurance changes
Q (Yong-jin Seol · iM): For non-life: what was the Q3 impact from new coverage rules and the eight-week rule? For life: what happened with seven-year whole life lapses and will you adjust assumptions?
A: For non-life, management said shockwave and manual therapy guidance from July led to KRW 7 billion-KRW 8 billion offsetting losses but non-covered therapies caused KRW 5 billion-KRW 7 billion increases, leaving about a KRW 2 billion positive effect. They said the eight-week rule started on September 10 and its numbers will show by end-November/December, and they expect KRW 90 billion-KRW 100 billion positive effect on car-accident losses. For life, they noted lapse issues in certain refund-type products, made adjustments in H1 2025, and expect a CSM impact around KRW 3.5 trillion level.
Therapy coverage and lapse adjustments
Q (Speaker 5): Follow-up on manual therapy coverage effects and the plan for managing lapse-related impacts.
A: Management said they will try to prevent balloon effects from non-covered therapies and take collective measures to stop cost inflation. They reiterated adjustments were already made for refund-type products and they are working to reduce the lapse-related gap.
Fees and holding company tax impact
Q (Jihyun Cho · JPMorgan): The analyst asked whether Q3 commission decline had one-offs and for guidance on fee income, and the impact of establishing a holding company on corporate tax and future prospects.
A: Management only addressed the holding company question in the record: they said establishing an Indonesia holding company will not materially change the group's P&L but the timing of the transition could affect corporate tax and cause some additional impact. They said they will manage synergies among subsidiaries after establishment.
Indonesia holding company details
Q (Jong-min Lee): When will the Indonesia holding company be set up and what operational or tax effects should investors expect?
A: Management said they must establish the Indonesia holding company with six subsidiaries by August 2027 and will make the required contribution. They said P&L impact will be limited, but timing of the transition could change corporate tax timing and they will pursue synergies across subsidiaries.