KB Financial Group (KB) 3Q26 Earnings: Fee Income Falls and Bank NIM Slips Again

KB Financial Group's 3Q26 earnings, released on October 29, 2026 through its earnings conference and a Form 6-K, show profit still growing but with weaker quality than the headline suggests [1][2]. Profit attributable to shareholders was KRW 1,907.5bn, up 13.13% year on year, while profit before tax rose only 3.88%; management cited a one-off tax benefit of about KRW 200bn [2][1]. Of the four issues followed after the first half, fee income fell sharply and Kookmin Bank's net interest margin (NIM) slipped another 2 basis points. Credit cost was 43bp in the quarter and 40bp for the first nine months, still within management's "mid-40bp range" for the year [1], and no new development was disclosed on the KRW 333bn provision related to ELS sales [3]. The capital ratio rose even after a record shareholder return. Overall, profit now depends more on fourth-quarter loan repricing lifting the margin, while fees have returned to roughly the KRW 1tn quarterly base.

KB Financial Group is a Korean financial holding company built around Kookmin Bank, with KB Securities, KB Kookmin Card and two insurers; it had consolidated total assets of about KRW 798tn at the end of 2025 [4]. The group earns mainly the spread between won loans and deposits, plus fee and insurance income from securities, cards and insurance.

Fee income fell back from the 2Q26 peak

Group net fee and commission income fell 29.7% quarter on quarter in 3Q26, giving back most of the 2Q26 gain [1]. Cumulative net fees for the first nine months were KRW 4,087.8bn, up 38.5% year on year; subtracting the first half leaves about KRW 1,126.6bn for 3Q26, compared with KRW 1,601.9bn in 2Q26 [1][5]. Management attributed the decline to lower stock-market trading volume, and other operating income from securities, derivatives and FX also fell sharply [1].

KB Securities' profit shows the change most directly. On KB Securities' own consolidated basis, 3Q26 profit attributable was KRW 272.6bn, down 39.41% quarter on quarter and up 71.25% year on year, compared with KRW 449.9bn in 2Q26 [2][6]. The 2Q26 level came from peak trading activity and should not be read as a new normal. Management described roughly KRW 1tn per quarter as the base for fee income and said precise guidance for next year is difficult [1]. Lower fees were the main reason group profit before tax fell 14.04% quarter on quarter [2].

Kookmin Bank NIM fell for a second straight quarter

Kookmin Bank's NIM was 1.72% and the group NIM was 1.92% in 3Q26, each down 2 basis points from the prior quarter [1]. The bank NIM had already fallen to 1.74% in 2Q26, when management guided to a gradual improvement in the second half [7][8]. Management said loan yields improved, but uneven supply and demand in the funding market raised funding costs, and narrower large-corporate loan spreads and lower core deposits also weighed on the margin [1].

Net interest income rose even as the margin fell. Group net interest income was about KRW 3,507bn in 3Q26, up 11.6% quarter on quarter, compared with KRW 3,143.4bn in 2Q26 [1][5]. Management attributed the increase to corporate loan growth and to the absence of a 2Q26 interest expense item related to consolidated funds [1], so the rebound came mainly from volume and the base effect. Kookmin Bank's profit before tax fell 1.89% year on year to KRW 1,549.0bn, while its profit attributable rose 14.78% because of a lower tax charge [2]. Management said repricing from the July and August base-rate hikes will be reflected gradually from the fourth quarter [1]. The end-September loan balance was not available, so the volume contribution cannot be quantified.

Capital rose after a record shareholder return

The preliminary CET1 ratio was 13.80% at the end of September, up 5 basis points from 13.74% at the end of June [1][7]. Buybacks and cash dividends in the quarter totaled about KRW 1.3tn, the company's largest quarterly return [1]. Risk-weighted assets were about KRW 368tn, up 3.1% from the start of the year and below the KRW 369.75tn reported at the end of June [1][9].

Shareholder returns are proceeding as planned. The 3Q26 dividend is KRW 1,167 per share, up from KRW 1,155 in 2Q26 [10][11]. By October 23, the KRW 700bn buyback trust had acquired KRW 698.2bn of shares [12]; management said the buyback is complete and that a further KRW 180bn cash dividend will be added at year end [1]. The year-end CET1 ratio will determine the first round of shareholder returns for 2027 [1].

Conclusion

KB's profit growth now leans on a margin recovery that has not yet happened. The cost-to-income ratio of 36.4% and cumulative credit cost stayed stable, but the one-off tax benefit supported the 13% profit growth [1], and capital still rose after the largest quarterly return. The fourth quarter will show whether bank NIM recovers as management guided, whether net fees hold around KRW 1tn per quarter, and whether the year-end CET1 ratio stays above 13.5%. All 3Q26 figures are preliminary and remain under auditor review [2].

Sources

• [1] [1] KB earnings call 2026-10-29 · 3Q26 business results and Q&A
• [2] [2] KB 6-K filed 2026-10-29 · 3Q26 preliminary operating results
• [3] [3] KB 20-F filed 2026-04-28 · ELS and LTV penalty provisions
• [4] [4] KB 20-F filed 2026-04-28 · business overview and scale
• [5] [5] KB 6-K filed 2026-08-14 · 2Q26 and 1H26 consolidated income statement
• [6] [6] KB 6-K filed 2026-07-23 · 1H26 preliminary KB Securities results
• [7] [7] KB earnings call 2026-07-23 · 1H26 segment and group performance
• [8] [8] KB earnings call 2026-07-23 · 2H26 guidance
• [9] [9] KB 6-K filed 2026-08-14 · capital adequacy at June 30, 2026
• [10] [10] KB 6-K filed 2026-10-29 · 3Q26 quarterly cash dividend
• [11] [11] KB 6-K filed 2026-07-23 · 2Q26 quarterly cash dividend
• [12] [12] KB 6-K filed 2026-10-26 · treasury share trust interim results