Q4 2024 KB Financial Group Inc Earnings Call Transcript
Key Points
- KB Financial Group Inc (KB) reported a net profit of over KRW5 trillion for 2024, marking a solid profit uptrend despite economic challenges.
- The company's pre-provisioning operating profit increased by 5.9% year over year, demonstrating strong earnings capacity.
- KB Financial Group Inc (KB) implemented a share buyback and cancellation program, leading the market in shareholder returns.
- The group's ROE improved to 9.72% in 2024, reflecting successful business diversification efforts.
- Net fee and commission income rose by 4.8% year over year, driven by increased credit card merchant fees and cost efficiency gains.
- The rate cut cycle eroded profitability, raising concerns about asset quality due to a slump in the real economy.
- Q4 net profit saw a significant decline due to one-off expenses, including ERP costs and a decrease in gains from securities and derivatives.
- The group's CET1 ratio dipped slightly due to profit contraction in Q4 and FX fluctuations.
- Net interest margin (NIM) decreased slightly year over year, indicating challenges in maintaining profitability.
- Provisioning for credit losses increased by 13.5% quarter over quarter in Q4, reflecting a conservative stance amid potential economic downturns.
Greetings. I am Peter Kwon, Head of KBFG IR. We will now begin the 2024 full-year business presentation. Thank you very much for participating in today's earnings release.
At today's earnings release, we have here with us executives from the group, including Managing Director and CFO, Sang Rok Nah. First, our Group CFO will cover 2024 major earnings results. And after that, we will engage in a Q&A session.
Please note that from this presentation after our real-time Q&A session, we have set aside additional time for the management team to answer questions that were previously submitted by our shareholders to our website.
I will now invite our group CFO to walk us through 2024 full-year business results.
Good afternoon. I am Nah Sang Rok, CFO of KB Financial Group. Thank you all for joining KBFG's earnings presentation for FY 2024.
Before going into earnings results, I will
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