[Edaily Reporter Kim Kyung-eun ] On the 5th, iM Securities maintained its “Buy” rating and target price of 205,000 won for KB Financial Group(105560), stating that it is “the most stable choice amid rising uncertainty.” As of the closing price on the 5th, KB Financial Group’s stock price stood at 151,500 won. Analysts note that the company is capable of generating stable profits and returning value to shareholders based on the highest capital ratio in the industry and a well-balanced business portfolio.

Seol Yong-jin, an analyst at iM Securities, stated in a report released today, “KB Financial Group’s greatest strength lies in its ability to generate stable, solid profits while responding to changes in the macroeconomic environment, regardless of industry conditions,” adding, “Given its industry-leading capital adequacy, we expect no difficulties in terms of shareholder returns.”

KB Financial Group’s Common Equity Tier 1 (CET1) ratio stood at 13.8% as of the end of the third quarter of this year. Based on this high capital ratio, the company is assessed to have sufficient capacity to respond even if unexpected losses, such as increased loan loss provisions, occur.

It is particularly noteworthy that the company can maintain a stable profit stream even amid recent concerns over an economic slowdown and increased volatility in financial markets. The explanation is that the company has sufficient capital reserves to absorb even a temporary increase in loan loss provisions, and that the high profit contribution from not only the bank but also its non-bank affiliates as a whole allows it to offset any underperformance in specific business segments.

In fact, while KB Financial Group’s non-interest income decreased by 2.1% year-over-year in the third quarter of this year, net interest income increased by 3.9%. Analysts note that the diversified business structure—spanning banking, securities, and insurance—is underpinning the stability of its earnings.

The possibility of expanded shareholder returns was also viewed positively. KB Financial Group has repurchased approximately 1.8 trillion won worth of its own shares through the third quarter of this year. Analysts project that an additional share buyback of about 1 trillion won will take place in the fourth quarter of this year.

Analyst Seol explained, “Regarding shareholder returns, due to issues surrounding distributable earnings in the fourth quarter of 2026, 180 billion won of the second-half shareholder returns was distributed as a year-end dividend,” but added, “Since 7.5 trillion won in tax-exempt dividend funds was secured through a reduction in capital surplus at the 2026 shareholders’ meeting, issues related to distributable earnings are expected to be limited going forward.”

The outlook for next year’s earnings is also favorable. iM Securities projected that KB Financial Group’s 2027 net income attributable to controlling shareholders will reach 6.9493 trillion won, a 3.1% increase from this year’s forecast. This is 1.3% higher than market expectations.

Next year’s net interest margin (NIM) is expected to remain at a level similar to this year’s. The loan growth rate is projected to be around 3%. The firm analyzed that growth will be driven primarily by corporate loans, while the trend of managing household loans will continue.

The loan loss provision ratio is projected to decline from 0.52% this year to 0.48% next year. While a conservative approach to capital adequacy management may emerge this year—taking into account the appointment of a new chairman—the analysis suggests that a stable profit trend will continue into next year.

Researcher Seol emphasized, “The total shareholder return ratio is expected to reach 57.9% in 2027,” adding, “Amid the recent phase of increased volatility across the entire sector, the bank’s stability—based on shareholder returns, including dividends, and a well-balanced portfolio—will serve as a bulwark against the impact of domestic and international uncertainties that are causing stock price volatility to widen.”