KB Financial Group Inc. Q1 FY2026 earnings call

Efforts to reduce RWA sensitivity, including managing over the counter derivatives duration and maturity, data refinement, portfolio rebalancing, etc.; Conservative provisioning stance for MPL coverage ratio, with active write-off, sell-off, and exit strategy for real estate exposures to reduce MPL; Impact of ELS-related operational risk on CT1, with about 745 billion won voluntary compensation earmarked as losses, and potential 20 BIP positive impact on CT1 from next year; Bukufin Bank's restructuring and IT system upgrade, strong operational base, and efforts to reduce funding costs through acquisition of CASA deposits; Loan growth targets: household loan 1% - 2%, corporate loan 6% - 7%, overall bank credit growth around 4% for the year

Not detailed product segment financial performance provided

Loan growth targets: household loan 1% - 2%, corporate loan 6% - 7%, overall bank credit growth around 4% for the year; Credit cost expected to be attainable at early to mid-40 BIPs level as of now; SG&A increase manageable due to tax rate increase, strong earnings leading to bonus set-aside, but efforts to manage cost optimization

FX impact on profitability and RWA sensitivity; Unconfirmed fines and penalties; Potential additional impact on asset quality from Middle East war and high FX rate

Q: Despite a challenging environment, questions about operational risk RWA deregulation and impact on CT1, and KB Bukufin Bank's overseas earnings contribution.

A: ELS-related operational risk may have 20 BIP positive CT1 impact from next year, Bukufin Bank has strong operational base and efforts to reduce funding costs, global profit contribution expected to hike; Q: Question about loan growth sustainability, SG&A increase manageability, and credit cost.

A: Loan growth targets by segment, credit cost attainable at current level, SG&A increase manageable due to tax and earnings factors