Fact Source: Yuanta Securities / Report Date: July 1, 2026
Investment Opinion & Target Price: BUY (Maintain) / 225,000 KRW (Raised)
Key Momentum: Solid earnings fundamentals anchored by stable NIM, backed by robust shareholder return sustainability through resilient post-H2 CET-1 ratio management.
📊 1. [Valuation Indicators & Investment Metrics Analysis]
- Investment Opinion & Target Price Trend: Maintained the ‘BUY’ rating and upwardly revised the target price by 2.3% from KRW 220,000 to KRW 225,000. While near-term stock price volatility may expand ahead of the completion of the current share buyback phase and the 2Q26 earnings release scheduled for July 23, the mid-to-long-term capital return thesis remains highly attractive.
- Key Financial Metrics & Valuation Forecasts:
- Operating Profit: 2024A: KRW 8,045B ➡️ 2025A: KRW 8,518B ➡️ 2026F: KRW 9,566B ➡️ 2027F: KRW 9,953B
- Net Profit (Controlling Interest): 2024A: KRW 5,078B ➡️ 2025A: KRW 5,833B ➡️ 2026F: KRW 6,697B ➡️ 2027F: KRW 7,012B
- P/E (Price-to-Earnings Ratio): 2024A: 6.1x ➡️ 2025A: 7.7x ➡️ 2026F: 8.3x ➡️ 2027F: 7.7x
- P/B (Price-to-Book Ratio): 2024A: 0.59x ➡️ 2025A: 0.82x ➡️ 2026F: 0.96x ➡️ 2027F: 0.88x
- ROE (Return on Equity): 2024A: 8.9% ➡️ 2025A: 10.0% ➡️ 2026F: 11.1% ➡️ 2027F: 11.2%
- Total Shareholder Return Rate & TSR: The total shareholder return rate for full-year 2026 is projected at 54.1%, with a 12M Fwd TSR modeled at 6.3%.
🚀 2. [Market Opportunities (TAM) & Detailed Earnings Estimates]
- 2Q26 Earnings Preview & Estimated Data:
- Net Profit (Controlling Interest): Estimated at KRW 1.83T, up +5.3% Year-on-Year (YoY), matching the market consensus of KRW 1.78T.
- Interest Income: Projected to rise +0.8% Quarter-on-Quarter (QoQ), with the bank-level NIM holding steady at 1.77%.
- Non-Interest Income: Fees and commission revenues are expected to show improvements driven by higher stock market trading volumes, but overall non-interest income will drop slightly QoQ due to bond valuation losses from rising interest rates.
- One-off Items: An ELS penalty provision reversal of approximately KRW 50.0B to 100.0B is expected to materialize as early as Q2 or Q3.
- Share Buyback Progress and CET-1 Projections:
- Remaining Share Buyback Schedule: Out of the KRW 600.0B buyback program announced for Q2, KRW 205.6B has been executed to date. Over the final 14 days leading up to the program’s conclusion on July 20, the remaining KRW 394.3B will be deployed. This implies a mechanical daily inflow of roughly KRW 28.0B, translating to approximately 10% of recent daily trading volumes.
- CET-1 (Common Equity Tier 1) Ratio: The 2Q26 CET-1 ratio is modeled at 13.72%, rising 9bp from Q1 (13.63%). Strong net profit expansion (+50bp) successfully offset headwinds from a higher USD/KRW exchange rate (-6bp) and dividend/buyback deductions (-16.4bp). Maintaining the CET-1 baseline above 13.5% alongside managed Risk-Weighted Asset (RWA) growth is expected to yield an additional KRW 800.0B share buyback program in H2.
📝 Editor’s Comment (by K-STOCK Editor)
KB Financial Group’s 2Q26 preview reinforces its leading positions, with bank NIM defending firmly at 1.77% and controlling net profit landing reliably within consensus expectations. The critical variable for global investors remains the continuity of its capital management framework—specifically the relationship between the CET-1 ratio and corporate value-up initiatives. Despite macro anxieties surrounding foreign exchange pressures at the end of June, the estimated 2Q26 CET-1 ratio of 13.72% stays comfortably clear of the group’s 13.5% shareholder return threshold. Notably, the mandatory daily deployment of KRW 28.0B in buybacks through July 20 provides a substantial technical liquidity buffer for the stock price. With an incremental earnings tailwind from impending ELS provision reversals (KRW 50.0B–100.0B) looming in the near term, visibility for a follow-up KRW 800.0B buyback program in H2 via RWA management remains exceptionally high. The raised target price of KRW 225,000, signaling a 42% upside, accurately values the group’s structural leadership in pioneering predictable shareholder capital returns within the domestic banking sector.
📢 Disclaimer & Source Information Source: This content has been newly structured and written based on financial facts and data from officially published securities reports.
Investment Risk Notice: This content is provided solely for informational and linguistic reference purposes. Under no circumstances does it constitute financial advice or a recommendation to buy or sell specific stocks. All investment decisions and financial liabilities rest entirely with the investor.
Contact: For compliance inquiries or copyright requests, please contact ksb220805@gmail.com.
🔥 Bulls vs Bears, drop your analysis in the comments!
