6-K
KB Financial Group Inc. (KB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OFFOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2024
Commission File Number: 000-53445
KB Financial Group Inc.
(Translation of registrant’s name into English)
26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul 07331, Korea
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Preliminary Operating Results for Fiscal Year 2023
On February 7, 2024, KB Financial Group Inc. (“KB Financial Group”) held an earnings conference and released its preliminary operating results for fiscal year 2023. The following tables reflect the key figures released during the conference. The presentation materials for the conference, which contain further details, are available at KB Financial Group’s website (http://www.kbfg.com).
The preliminary figures presented herein are based on International Financial Reporting Standards as adopted by the Republic of Korea (“K-IFRS”) and are currently being audited by KB Financial Group’s independent auditors and are thereby subject to change.
1. Preliminary Operating Results of KB Financial Group (Consolidated)
| (Won in millions, %) | 4Q 2023 | 3Q 2023 | % ChangeIncrease(Decrease)(Q to Q) | 4Q 2022 | % ChangeIncrease(Decrease)<br><br><br>(Y to Y) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operatingrevenue | Specified Quarter | 18,481,502 | 18,644,065 | (0.87 | ) | 8,237,548 | 124.36 | |||||||
| Cumulative | 77,787,623 | 59,306,121 | — | 83,435,294 | (6.77 | ) | ||||||||
| Net operatingprofit | Specified Quarter | 304,173 | 1,953,108 | (84.43 | ) | 182,175 | 66.97 | |||||||
| Cumulative | 6,435,319 | 6,131,146 | — | 5,289,175 | 21.67 | |||||||||
| Profit before incometax | Specified Quarter | 271,237 | 1,909,688 | (85.80 | ) | 26,963 | 905.96 | |||||||
| Cumulative | 6,170,449 | 5,899,212 | — | 5,449,744 | 13.22 | |||||||||
| Profit (Loss) for theperiod | Specified Quarter | 217,476 | 1,341,970 | (83.79 | ) | (114,626 | ) | * | ||||||
| Cumulative | 4,563,431 | 4,345,955 | — | 3,931,401 | 16.08 | |||||||||
| Profit attributable toshareholders of the parent company | Specified Quarter | 261,490 | 1,373,755 | (80.97 | ) | 114,709 | 127.96 | |||||||
| Cumulative | 4,631,932 | 4,370,442 | — | 4,152,992 | 11.53 | |||||||||
| Notes: 1) | “Operating revenue” represents the sum of interest income, fee and commission income, insurance income, reinsurance income, gain on financial assets/liabilities at fair value through profit or loss, other insurance finance<br>income and other operating income. | |||||||||||||
| --- | --- | |||||||||||||
| 2) | KB Financial Group’s preliminary operating results for the fourth quarter of 2023 reflect the application of K-IFRS 1117 (Insurance Contracts), a new accounting standard that became<br>effective on January 1, 2023. For comparison purposes, the figures for the fourth quarter of 2022 above have been restated retrospectively to reflect the application of K-IFRS 1117. | |||||||||||||
| 3) | * indicates that there was a change from a loss in the prior period to a profit in the current period. |
2. Preliminary Operating Results of Kookmin Bank (Consolidated)
| (Won in millions, %) | 4Q 2023 | 3Q 2023 | % ChangeIncrease(Decrease)(Q to Q) | 4Q 2022 | % ChangeIncrease(Decrease)<br><br><br>(Y to Y) | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operatingrevenue | Specified Quarter | 10,411,048 | 10,884,265 | (4.35 | ) | 3,750,861 | 177.56 | ||||||
| Cumulative | 45,032,120 | 34,621,072 | — | 49,436,046 | (8.91 | ) | |||||||
| Net operatingprofit | Specified Quarter | 474,594 | 1,363,244 | (65.19 | ) | 539,767 | (12.07 | ) | |||||
| Cumulative | 4,327,990 | 3,853,396 | — | 3,834,989 | 12.86 | ||||||||
| Profit before incometax | Specified Quarter | 447,856 | 1,358,670 | (67.04 | ) | 495,493 | (9.61 | ) | |||||
| Cumulative | 4,229,777 | 3,781,921 | — | 3,809,790 | 11.02 | ||||||||
| Profit for theperiod | Specified Quarter | 344,200 | 963,887 | (64.29 | ) | 207,142 | 66.17 | ||||||
| Cumulative | 3,149,952 | 2,805,752 | — | 2,728,307 | 15.45 | ||||||||
| Profit attributable toshareholders of the parent company | Specified Quarter | 406,127 | 996,864 | (59.26 | ) | 445,444 | (8.83 | ) | |||||
| Cumulative | 3,261,499 | 2,855,372 | — | 2,996,015 | 8.86 | ||||||||
| Note: | “Operating revenue” represents the sum of interest income, fee and commission income, gain on<br>financial assets/liabilities at fair value through profit or loss and other operating income. | ||||||||||||
| --- | --- |
3. Preliminary Operating Results of KB Securities Co., Ltd. (“KBSecurities”) (Consolidated)
| (Won in millions, %) | 4Q 2023 | 3Q 2023 | % ChangeIncrease(Decrease)(Q to Q) | 4Q 2022 | % ChangeIncrease(Decrease)<br><br><br>(Y to Y) | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operatingrevenue | Specified Quarter | 2,875,997 | 2,578,987 | 11.52 | % | 322,973 | 790.48 | % | ||||||
| Cumulative | 11,585,140 | 8,709,143 | — | 14,270,022 | (18.81 | %) | ||||||||
| Net operating profit(loss) | Specified Quarter | 68,839 | 153,053 | (55.02 | %) | (104,282 | ) | * | ||||||
| Cumulative | 680,154 | 611,315 | — | 244,995 | 177.62 | % | ||||||||
| Profit (Loss) before incometax | Specified Quarter | 10,585 | 150,636 | (92.97 | %) | (155,697 | ) | * | ||||||
| Cumulative | 492,761 | 482,176 | — | 262,327 | 87.84 | % | ||||||||
| Profit (Loss) for theperiod | Specified Quarter | 22,483 | 113,291 | (80.15 | %) | (114,325 | ) | |||||||
| Cumulative | 388,028 | 365,545 | — | 194,828 | 99.16 | % | ||||||||
| Profit (Loss) attributable toshareholders of the parent company | Specified Quarter | 29,840 | 112,936 | (73.58 | %) | (114,674 | ) | * | ||||||
| Cumulative | 395,015 | 365,175 | — | 193,697 | 103.93 | % | ||||||||
| Notes: 1) | Based on KB Securities’ consolidated financial statements, as a result of which the figures differ from KB<br>Securities’ earnings results to be released at KB Financial Group’s earnings conference for fiscal year 2023, which are based on KB Financial Group’s consolidated financial statements. | |||||||||||||
| --- | --- | |||||||||||||
| 2) | “Operating revenue” represents operating income based on KB Securities’ financial statements.<br> | |||||||||||||
| --- | --- | |||||||||||||
| 3) | * indicates that there was a change from a loss in the prior period to a profit in the current period.<br> | |||||||||||||
| --- | --- |
Declaration of Cash Dividends by KB Financial Group
On February 7, 2024, the board of directors of KB Financial Group passed a resolution to declare a cash dividend of KRW 1,530 per common share for a total dividend amount of KRW 579,355,652,250, subject to shareholder approval. Such dividend amount does not include the quarterly cash dividends that have already been paid in fiscal year 2023 (three dividend payments each in the amount of KRW 510 per common share for the first, second and third quarters of fiscal year 2023).
The record date is February 29, 2024 (Korea local time), and in accordance with the Korean Commercial Code, the payment for such dividends is expected to be made within one month following shareholder approval at the annual general meeting of shareholders of KB Financial Group (the “AGM”). The date of the AGM will be decided and made publicly available upon the resolution of the board of directors of KB Financial Group to convene such meeting.
The contents of the above declaration remain subject to change pending the results of the audit by KB Financial Group’s independent auditors and the approval at the AGM.
The total number of outstanding common shares that are eligible for payment of dividends is 378,663,825 shares as of February 7, 2024. However, such number is subject to change based on the number of outstanding shares as of the record date for the cash dividends.
Declaration of Cash Dividends by Kookmin Bank
On February 6, 2024, the board of directors of Kookmin Bank, a wholly-owned subsidiary of KB Financial Group, passed a resolution to declare a cash dividend of KRW 3,630 per common share, for a total dividend amount of KRW 1,467,896,191,080, subject to shareholder approval.
The record date is December 31, 2023, and in accordance with the Korean Commercial Code, the payment for such dividends is expected to be made within one month following shareholder approval at the annual general meeting of shareholders of Kookmin Bank, which is expected to be held on March 21, 2024.
The entire dividend amount is to be paid to KB Financial Group, which holds all of the common shares of Kookmin Bank.
The contents of the above declaration remain subject to change pending the results of the audit by Kookmin Bank’s independent auditors and the approval at the annual general meeting of shareholders of Kookmin Bank.
Declaration of Cash Dividends by KB Securities
On February 6, 2024, the board of directors of KB Securities, a wholly-owned subsidiary of KB Financial Group, passed a resolution to declare a cash dividend of KRW 502 per common share, for a total dividend amount of KRW 150,000,000,000, subject to shareholder approval.
The record date is December 31, 2023, and in accordance with the Korean Commercial Code, the payment for such dividends is expected to be made within one month following shareholder approval at the annual general meeting of shareholders of KB Securities, which is expected to be held on March 21, 2024. The entire dividend amount is to be paid to KB Financial Group, which holds all of the common shares of KB Securities.
The contents of the above declaration remain subject to change pending the results of the audit by KB Securities’ independent auditors and the approval at the annual general meeting of shareholders of KB Securities.
Report of Change in Revenue or Profit of More than 15% (KB Financial Group)
On February 7, 2024, KB Financial Group reported changes in its revenue and profit as described below.
Key Details (Consolidated)
| (Won in thousands) | FY 2023 | FY 2022 | Change(Amount) | Change(%) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue and Profit | ||||||||||
| - Operating revenue | 77,787,623,304 | 83,435,293,877 | (5,647,670,573 | ) | (6.77 | ) | ||||
| - Net operating profit | 6,435,318,681 | 5,289,174,737 | 1,146,143,944 | 21.67 | ||||||
| - Profit from continuing operations before<br>income tax | 6,170,449,035 | 5,449,743,932 | 720,705,103 | 13.22 | ||||||
| - Profit for the period | 4,563,431,412 | 3,931,400,944 | 632,030,468 | 16.08 | ||||||
| Primary reason for the change in<br>revenue/profit | An increase in interest income, primarily due to an increase in the<br>average balance of loan assets, as well as an increase in<br>the<br>overall level of interest rates. | |||||||||
| Other Financial Data | ||||||||||
| - Total assets | 715,738,152,145 | 688,664,826,732 | ||||||||
| - Total liabilities | 656,864,841,714 | 634,557,026,226 | ||||||||
| - Total equity | 58,873,310,431 | 54,107,800,506 | ||||||||
| - Capital stock | 2,090,557,685 | 2,090,557,685 | ||||||||
| - Total equity / Capital stock ratio<br>(%) | 2,816.2 | 2,588.2 | ||||||||
| Note: 1) | The preliminary figures presented above are based on K-IFRS and are<br>subject to change pending the results of the audit by KB Financial Group’s independent auditors. | |||||||||
| --- | --- | |||||||||
| 2) | “Operating revenue” represents the sum of interest income, fee and commission income, insurance<br>income, gain on financial assets/liabilities at fair value through profit or loss and other operating income. | |||||||||
| --- | --- | |||||||||
| 3) | “Profit for the period” comprises the total profit for the period, including profit attributable to<br>both controlling interests and non-controlling interests. | |||||||||
| --- | --- | |||||||||
| 4) | The preliminary figures for fiscal year 2023 presented above reflect the application of K-IFRS 1117 (Insurance Contracts), a new accounting standard that became effective on January 1, 2023. For comparison purposes, the figures for fiscal year 2022 above have been restated retrospectively to<br>reflect the application of K-IFRS 1117. | |||||||||
| --- | --- |
Report of Change in Revenue or Profit of More than 15% (Kookmin Bank)
On February 7, 2024, KB Financial Group reported changes in the revenue and profit of Kookmin Bank as described below.
Key Details (Consolidated)
| (Won in thousands) | FY 2023 | FY 2022 | Change(Amount) | Change(%) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue and Profit | ||||||||||
| - Operating revenue | 45,032,119,654 | 49,436,045,706 | (4,403,926,052 | ) | (8.9 | ) | ||||
| - Net operating profit | 4,327,990,390 | 3,834,988,924 | 493,001,466 | 12.9 | ||||||
| - Profit from continuing operations before<br>income tax | 4,229,776,591 | 3,809,790,245 | 419,986,346 | 11.0 | ||||||
| - Profit for the period | 3,149,952,039 | 2,728,306,976 | 421,645,063 | 15.5 | ||||||
| Primary reason for the change in<br>revenue/profit | An increase in interest income, primarily due to an increase in the<br>average balance of loan assets, as well as an increase in<br>the<br>overall level of interest rates. | |||||||||
| Other Financial Data | ||||||||||
| - Total assets | 530,012,853,218 | 517,769,511,972 | ||||||||
| - Total liabilities | 493,464,125,722 | 484,046,253,090 | ||||||||
| - Total equity | 36,548,727,496 | 33,723,258,882 | ||||||||
| - Capital stock | 2,021,895,580 | 2,021,895,580 | ||||||||
| - Total equity / Capital stock ratio<br>(%) | 1,807.6 | 1,667.9 | ||||||||
| Note: 1) | The preliminary figures presented above are based on K-IFRS and are<br>subject to change pending the results of the audit by KB Financial Group’s independent auditors. | |||||||||
| --- | --- | |||||||||
| 2) | “Operating revenue” represents the sum of interest income, fee and commission income, gain on<br>financial assets/liabilities at fair value through profit or loss and other operating income. | |||||||||
| --- | --- | |||||||||
| 3) | “Profit for the period” comprises the total profit for the period, including profit attributable to<br>both controlling interests and non-controlling interests. | |||||||||
| --- | --- |
Report of Change in Revenue or Profit of More than 15% (KB Securities)
On February 7, 2024, KB Financial Group reported changes in the revenue and profit of KB Securities as described below.
Key Details (Consolidated)
| (Won in thousands) | FY 2023 | FY 2022 | Change(Amount) | Change(%) | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue and Profit | ||||||||||
| - Operating revenue | 11,585,140,111 | 14,270,022,557 | (2,684,882,446 | ) | (18.81 | ) | ||||
| - Net operating profit | 680,154,124 | 244,995,248 | 435,158,876 | 177.62 | ||||||
| - Profit from continuing operations before<br>income tax | 492,761,458 | 262,326,853 | 230,434,605 | 87.84 | ||||||
| - Profit for the period | 388,027,837 | 194,827,662 | 193,200,175 | 99.16 | ||||||
| Primary reason for the change in<br>revenue/profit | An overall increase in business sector performance, including<br>increases in profits from sales and trading activities. | |||||||||
| Other Financial Data | ||||||||||
| - Total assets | 61,266,919,886 | 53,817,409,332 | ||||||||
| - Total liabilities | 54,970,887,868 | 47,948,618,773 | ||||||||
| - Total equity | 6,296,032,018 | 5,868,790,559 | ||||||||
| - Capital stock | 1,493,102,120 | 1,493,102,120 | ||||||||
| - Total equity / Capital stock ratio<br>(%) | 421.7 | 393.1 | ||||||||
| Note: 1) | The preliminary figures presented above are based on K-IFRS and are<br>subject to change pending the results of the audit by KB Securities’ independent auditors. | |||||||||
| --- | --- | |||||||||
| 2) | “Operating revenue” represents operating income based on KB Securities’ financial statements.<br> | |||||||||
| --- | --- | |||||||||
| 3) | “Profit for the period” comprises the total profit for the period, including profit attributable to<br>both controlling interests and non-controlling interests. | |||||||||
| --- | --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| KB Financial Group Inc. | ||
|---|---|---|
| (Registrant) | ||
| Date: February 7, 2024 | By: | /s/ Jae Kwan Kim |
| (Signature) | ||
| Name: Jae Kwan Kim | ||
| Title: Senior Executive Vice President and Chief Finance Officer |