[Edaily Reporter Lee Hye-ra] On the 10th, LS Securities projected that #KB Financial Group would continue its aggressive shareholder return policy in the second half of the year. The firm raised its target price to 205,000 won and maintained its top pick rating within the banking sector.

Jeon Bae-seung, an analyst at LS Securities, stated in a report released that day, “Based on improved interest income due to interest rate hikes and robust non-interest income, a favorable earnings trend is expected in the second half,” adding, “An additional 600 billion won in share buybacks is possible in the second half.”
Despite reflecting a fine related to Hong Kong H-index equity-linked securities (ELS) in the first quarter of this year, KB Financial Group posted record-high earnings based on robust interest income and low loan loss provisions. In particular, non-interest income reached 1.6 trillion won, driven by strong performance from its securities subsidiary, demonstrating its differentiated profit-generating capabilities.
Researcher Jeon also presented a positive outlook for the second half of the year. He predicted, “Interest income is expected to improve due to interest rate hikes, and non-interest income will also continue its robust trend, bolstered by a strong stock market and the effects of securities firms’ capital increases early this year,” adding, “Performance in the property and casualty insurance sector, which was somewhat sluggish in the first quarter, will also gradually improve.”
He also highlighted the potential for expanded shareholder returns. Jeon noted, “Although the Common Equity Tier 1 (CET1) ratio declined in the first quarter, capital ratios are expected to recover rapidly due to exchange rate stability and the effects of relaxed capital regulations following interest rate hikes.” He added, “This year’s shareholder return ratio is projected to reach around 57%, and the company is expected to continue leading the financial sector in shareholder returns.”
Researcher Jeon assessed, “KB Financial is a company deserving of a premium in terms of its ability to generate recurring profits and its shareholder return policy.”