KB Financial : Consolidated Review Report 1st Quarter 2024

(in millions of Korean won)

March 31, 2024

Notes

(Unaudited)

December 31, 2023

Assets

Cash and due from financial institutions

4,6,7,30

30,509,269

29,836,311

Financial assets at fair value through profit or loss

4,6,11

77,356,807

77,038,267

Derivative financial assets

4,6,8

7,260,440

6,157,628

Loans measured at amortized cost

4,6,9,10

448,194,423

444,805,287

Financial investments

4,6,11

124,966,655

122,199,529

Investments in associates and joint ventures

700,626

722,222

Insurance contract assets

29

268,419

229,640

Reinsurance contract assets

29

1,552,936

1,655,168

Property and equipment

5,310,307

4,945,699

Investment property

3,962,852

4,109,784

Intangible assets

1,961,022

1,950,858

Net defined benefit assets

18

382,385

374,090

Current income tax assets

274,900

244,317

Deferred income tax assets

12,25

335,124

274,225

Assets held for sale

119,494

208,230

Other assets

4,6

29,084,622

20,986,897

Total assets

732,240,281

715,738,152

Liabilities

Financial liabilities at fair value through profit or loss

4,6,13

11,267,107

10,920,435

Derivative financial liabilities

4,6,8

7,236,591

6,210,639

Deposits

4,6,14

418,070,668

406,512,434

Borrowings

4,6,15

62,993,551

69,583,561

Debentures

4,6,16

70,002,922

69,176,668

Insurance contract liabilities

29

50,704,289

50,308,552

Reinsurance contract liabilities

29

37,353

36,030

Provisions

17

2,062,011

1,444,418

Net defined benefit liabilities

18

72,939

81,869

Current income tax liabilities

146,395

145,335

Deferred income tax liabilities

12,25

2,004,644

2,179,966

Other liabilities

4,6

48,434,480

40,264,935

Total liabilities

673,032,950

656,864,842

Equity

Share capital

2,090,558

2,090,558

Hybrid securities

5,431,863

5,032,803

Capital surplus

16,639,873

16,647,916

Accumulated other comprehensive income (loss)

27

1,531,423

2,295,165

Retained earnings

32,439,145

32,029,199

Treasury shares

(996,774)

(1,165,837)

Equity attributable to shareholders of the Parent Company

19

57,136,088

56,929,804

Non-controlling interests

2,071,243

1,943,506

Total equity

59,207,331

58,873,310

Total liabilities and equity

732,240,281

715,738,152

2024

2023

Notes

(Unaudited)

(Unaudited)

Interest income

7,613,962

6,866,583

Interest income from financial instruments at fair value

through other comprehensive income and amortized cost

7,228,877

6,527,556

Interest income from financial instruments at fair value

through profit or loss

376,753

333,477

Insurance finance interest income

8,332

5,550

Interest expense

(4,462,477)

(4,042,718)

Interest expense

(4,066,526)

(3,639,880)

Insurance finance interest expense

(395,951)

(402,838)

Net interest income

5,20

3,151,485

2,823,865

Fee and commission income

1,396,300

1,334,702

Fee and commission expense

(406,207)

(420,696)

Net fee and commission income

5,21

990,093

914,006

Insurance income

2,727,558

2,663,134

Insurance income

2,689,474

2,498,548

Reinsurance income

38,084

164,586

Insurance expense

(2,189,179)

(2,270,727)

Insurance service expense

(1,973,227)

(2,073,226)

Reinsurance expense

(215,952)

(197,501)

Net insurance income

5,29

538,379

392,407

Net gains (losses) on financial instruments

at fair value through profit or loss

5,22

249,133

773,407

Other insurance finance income (expenses)

29

(112,426)

(269,060)

Net other operating expenses

5,23

(404,710)

(260,124)

General and administrative expenses

5,18,24

(1,628,236)

(1,566,286)

Operating income before provision for credit losses

4

2,783,718

2,808,215

Provision for credit losses

5,7,9,10,17

(428,270)

(668,188)

Net operating income

5

2,355,448

2,140,027

Share of profit (loss) of associates and joint ventures

5

(1,419)

(2,496)

Net other non-operating income (expenses)

5

(946,545)

(93,665)

Net non-operating income (expenses)

(947,964)

(96,161)

Profit before income tax expense

5

1,407,484

2,043,866

Income tax expense

5,25

(344,270)

(533,575)

Profit for the period

5

1,063,214

1,510,291

(in millions of Korean won)

Equity attributable to shareholders of the Parent Company

Accumulated

other

Share

Hybrid

Capital

comprehensive

Retained

Treasury

Non-controlling

Total

Notes

capital

securities

surplus

income

earnings

shares

interests

equity

Balance as of January 1, 2023 (Before the restatement)

₩

2,090,558

4,434,251

16,940,731

1,312,521

28,922,273

(836,188)

1,280,102

54,144,248

Changes in accounting policies

-

-

-

(62,599)

26,152

-

-

(36,447)

Balance as of January 1, 2023 (After the restatement)

2,090,558

4,434,251

16,940,731

1,249,922

28,948,425

(836,188)

1,280,102

54,107,801

Comprehensive income for the period

Profit (loss) for the period

-

-

-

-

1,508,708

-

1,583

1,510,291

Remeasurements of net defined benefit liabilities

-

-

-

5,032

-

-

796

5,828

Currency translation differences

-

-

-

105,479

-

-

10,340

115,819

Gains (losses) on financial instruments at fair value through other

comprehensive income and transfer to retained earnings

-

-

-

1,525,920

(558)

-

(15)

1,525,347

Share of other comprehensive loss of associates and joint ventures

-

-

-

(4,160)

-

-

-

(4,160)

Gains (losses) on cash flow hedging instruments

-

-

-

(35,465)

-

-

-

(35,465)

Losses on hedging instruments of net investments in foreign operations

-

-

-

(30,133)

-

-

-

(30,133)

Insurance finance income

-

-

-

(1,042,466)

-

-

-

(1,042,466)

Fair value changes of financial liabilities designated at fair value

through profit or loss due to own credit risk

-

-

-

(49,975)

-

-

-

(49,975)

Total comprehensive income (loss) for the period

-

-

-

474,232

1,508,150

-

12,704

1,995,086

Transactions with shareholders

Annual dividends paid to shareholders of the Parent Company

-

-

-

-

(564,970)

-

-

(564,970)

Issuance of hybrid securities

-

598,552

-

-

-

-

409,085

1,007,637

Dividends on hybrid securities

-

-

-

-

(40,703)

-

(17,467)

(58,170)

Acquisition of treasury shares

-

-

-

-

-

(271,745)

-

(271,745)

Others

-

-

(42)

-

-

-

(2,224)

(2,266)

Total transactions with shareholders

-

598,552

(42)

-

(605,673)

(271,745)

389,394

110,486

Balance as of March 31, 2023 (Unaudited)

2,090,558

5,032,803

16,940,689

1,724,154

29,850,902

(1,107,933)

1,682,200

56,213,373

Balance as of January 1, 2024

2,090,558

5,032,803

16,647,916

2,295,165

32,029,199

(1,165,837)

1,943,506

58,873,310

Comprehensive income for the period

Profit for the period

-

-

-

-

1,049,133

-

14,081

1,063,214

Remeasurements of net defined benefit liabilities

-

-

-

8,751

-

-

244

8,995

Currency translation differences

-

-

-

155,039

-

-

7,906

162,945

Losses on financial instruments at fair value through other

comprehensive income and transfer to retained earnings

-

-

-

(665,583)

(4,111)

-

(99)

(669,793)

Share of other comprehensive income of associates and joint ventures

-

-

-

(142)

-

-

-

(142)

Losses on cash flow hedging instruments

-

-

-

(36,797)

-

-

-

(36,797)

Losses on hedging instruments of net investments in foreign operations

-

-

-

(51,203)

-

-

-

(51,203)

Insurance finance expenses

-

-

-

(164,964)

-

-

-

(164,964)

Fair value changes of financial liabilities designated at fair value

through profit or loss due to own credit risk

-

-

-

(8,843)

-

-

-

(8,843)

Total comprehensive income (loss) for the period

-

-

-

(763,742)

1,045,022

-

22,132

303,412

Transactions with shareholders

Annual dividends paid to shareholders of the Parent Company

-

-

-

-

(587,006)

-

-

(587,006)

Issuance of hybrid securities

-

399,060

-

-

-

-

129,973

529,033

Dividends on hybrid securities

-

-

-

-

(48,070)

-

(22,477)

(70,547)

Acquisition of treasury shares

-

-

-

-

-

(65,537)

-

(65,537)

Disposal of treasury shares

-

-

-

-

-

234,600

-

234,600

Gains on disposal of treasury shares

-

-

3,975

-

-

-

-

3,975

Others

-

-

(12,018)

-

-

-

(1,891)

(13,909)

Total transactions with shareholders

-

399,060

(8,043)

-

(635,076)

169,063

105,605

30,609

Balance as of March 31, 2024 (Unaudited)

2,090,558

5,431,863

16,639,873

1,531,423

32,439,145

(996,774)

2,071,243

59,207,331

2024

2023

Notes

(Unaudited)

(Unaudited)

Cash flows from operating activities

Profit for the period

1,063,214

1,510,291

Adjustment for non-cash items

Net gains on financial assets at fair value through

profit or loss

(126,306)

(615,765)

Net losses on derivative financial instruments

for hedging purposes

65,926

18,329

Provision for credit losses

428,270

668,188

Net gains on financial investments

(13,521)

(18,464)

Share of loss of associates and joint ventures

1,419

2,496

Depreciation and amortization expense

216,882

205,533

Other net losses on property and

equipment/intangible assets

73,294

63,603

Share-based payments

59,901

11,361

Provision for policy reserves

-

382

Post-employment benefits

46,391

36,787

Net interest income

(19,621)

(6,321)

Gains (losses) on foreign currency translation

462,154

(26,314)

Insurance finance income

(2,841,375)

(2,651,431)

Reinsurance finance expense

440,770

270,218

Other expenses

226,100

194,570

(979,716)

(1,846,828)

Changes in operating assets and liabilities

Financial asset at fair value through profit or loss

208,850

(834,106)

Derivative financial instruments

(14,054)

(23,761)

Loans measured at fair value through other

comprehensive income

(98,728)

(116,388)

Loans measured at amortized cost

(3,016,264)

652,151

Current income tax assets

(30,583)

(14,496)

Deferred income tax assets

(56,432)

(11,503)

Other assets

(8,319,607)

(6,854,888)

Financial liabilities at fair value through profit or loss

290,139

(1,062,396)

Deposits

10,349,069

(6,603,254)

Current income tax liabilities

1,060

(866,500)

Deferred income tax liabilities

101,545

1,428,984

Other liabilities

7,133,780

10,039,564

Insurance contract assets

(38,778)

(69,242)

Reinsurance contract assets

(336,303)

(283,615)

Insurance contract liabilities

3,001,188

3,013,729

Reinsurance contract liabilities

8,218

20,595

Investment contract liabilities

(144,464)

(225,062)

9,038,636

(1,810,188)

Net cash inflow (outflow) from operating activities

9,122,134

(2,146,725)