KB Financial : Separate Review Report 1st Quarter 2024

KB Financial Group Inc.

Separate Interim Financial Statements

March 31, 2024 and 2023

(Unaudited)

KB Financial Group Inc.
	Page(s)
Report on Review of Condensed Separate Interim Financial Statements……....	1-2
Separate Interim Financial Statements
Separate Interim Statements of Financial Position	4
Separate Interim Statements of Comprehensive Income ...……..……………..………	5
Separate Interim Statements of Changes in Equity	6
Separate Interim Statements of Cash Flows………………………………	7
Notes to the Separate Interim Financial Statements……………………………...…	8

Report on Review of Condensed Separate Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and the Board of Directors of

KB Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed separate interim financial statements of KB Financial Group Inc. (the "Company"). These condensed separate interim financial statements consist of the separate interim statement of financial position of the Company as at March 31, 2024, and the related separate interim statements of comprehensive income, changes in equity and cash flows for the three- month periods ended March 31, 2024 and 2023, and material accounting policy information and other selected explanatory notes, expressed in Korean Won.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed separate interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ("Korean IFRS") No.1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed separate interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express a conclusion on these condensed separate interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed separate interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS 1034 Interim Financial Reporting.

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Other Matters

We have audited the separate statement of financial position of the Company as at December 31, 2023, and the related separate statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements in our audit report dated March 6, 2024. The separate statement of financial position as at December 31, 2023, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2023.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

/s/ Samil PricewaterhouseCoopers Seoul, Korea

May 16, 2024

This report is effective as of May 16, 2024, the review report date. Certain subsequent events or circumstances, which may occur between the review report date and the time of reading this report, could have a material impact on the accompanying condensed separate interim financial statements and notes thereto. Accordingly, the readers of the review report should understand that there is a possibility that the above review report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

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Separate Interim Financial Statements

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KB Financial Group Inc.

Separate Interim Statements of Financial Position

March 31, 2024 and December 31, 2023

(In millions of Korean won)

				March 31, 2024		December 31, 2023
	Notes	(Unaudited)
Assets
Cash and due from financial institutions	4,5,6,23 ￦	2,621,612		￦	256,337
Financial assets at fair value through profit or loss	4,5,7			1,062,613			1,376,423
Loans measured at amortized cost	4,5,8			643,195			608,286
Investments in subsidiaries	9			26,717,817			26,717,817
Property and equipment				3,766			3,080
Intangible assets				15,409			15,954
Net defined benefit assets	13			3,347			3,694
Deferred income tax assets	10			7,873			4,492
Other assets	4,5			1,069,424			542,815
Total assets			￦	32,145,056		￦	29,528,898
Liabilities
Borrowings	4,5,11			465,000			100,000
Debentures	4,5,12			3,267,247			3,871,820
Current income tax liabilities				127,739			104,299
Other liabilities	4,5			1,093,802			410,704
Total liabilities				4,953,788			4,486,823
Equity	14
Share capital				2,090,558			2,090,558
Hybrid securities				5,431,563			5,032,518
Capital surplus				14,748,242			14,754,747
Accumulated other comprehensive loss				(6,762)			(6,809)
Retained earnings				5,924,441			4,336,898
Treasury shares				(996,774)			(1,165,837)
Total equity				27,191,268			25,042,075
Total liabilities and equity			￦	32,145,056		￦	29,528,898

The above separate interim statements of financial position should be read in conjunction with the accompanying notes.

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KB Financial Group Inc.

Separate Interim Statements of Comprehensive Income

Three-Month Periods Ended March 31, 2024 and 2023

(In millions of Korean won, except per share amounts)

	Notes	2024			2023
Interest income			￦	9,817		￦	6,670
Interest income from financial instruments at
amortized cost				9,115			5,551
Interest income from financial instruments at fair value
through profit or loss				702			1,119
Interest expense				(23,542)			(26,724)
Net interest expense	16			(13,725)			(20,054)
Fee and commission income				378			372
Fee and commission expense				(1,520)			(1,619)
Net fee and commission expense	17			(1,142)			(1,247)
Net gains (losses) on financial instruments at fair value
through profit or loss	18			15,579			45,428
Net other operating income	19			2,243,250			2,192,380
General and administrative expenses	20			(24,187)			(22,902)
Operating income before provision for credit losses				2,219,775			2,193,605
Provision for credit losses				(96)			-
Net operating income				2,219,679			2,193,605
Net non-operating income (expense)				(646)			13
Profit before tax				2,219,033			2,193,618
Income tax benefit (expense)	21			3,586			(10,691)
Profit for the period				2,222,619			2,182,927
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities				47			17
Other comprehensive income(loss) for the period, net of tax				47			17
Total comprehensive income for the period			￦	2,222,666		￦	2,182,944
Earnings per share	22
Basic earnings per share			￦	5,706		￦	5,520
Diluted earnings per share				5,612			5,394

he above separate interim statements of comprehensive income should be read in conjunction with the accompanying note

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KB Financial Group Inc.

Separate Interim Statements of Changes in Equity

Three-Month Periods Ended March 31, 2024 and 2023

(In millions of Korean won)

											Accumulated
											other
		Share			Hybrid			Capital		comprehensive			Retained			Treasury			Total
		capital			securities			surplus			income			earnings			shares			equity
Balance as of January 1, 2023	￦	2,090,558		￦	4,433,981		￦	14,754,747		￦	(5,847)		￦	3,794,565		￦	(836,188)		￦	24,231,816
Comprehensive income for the period
Profit for the period		-			-			-			-			2,182,927			-			2,182,927
Remeasurements of net defined benefit liabilities		-			-			-			17			-			-			17
Total comprehensive income for the period		-			-			-			17			2,182,927			-			2,182,944
Transactions with shareholders
Annual dividends		-			-			-			-			(564,970)			-			(564,970)
Acquisition of treasury shares		-			-			-			-			-			(271,745)			(271,745)
Issuance of hybrid securities		-			598,537			-			-			-			-			598,537
Dividends on hybrid securities		-			-			-			-			(40,703)			-			(40,703)
Total transactions with shareholders		-			598,537			-			-			(605,673)			(271,745)			(278,881)
Balance as of March 31, 2023	￦	2,090,558		￦	5,032,518		￦	14,754,747		￦	(5,830)		￦	5,371,819		￦	(1,107,933)		￦	26,135,879
Balance as of January 1, 2024	￦	2,090,558		￦	5,032,518		￦	14,754,747		￦	(6,809)		￦	4,336,898		￦	(1,165,837)		￦	25,042,075
Comprehensive income for the period
Profit for the period		-			-			-			-			2,222,619			-			2,222,619
Remeasurements of net defined benefit liabilities		-			-			-			47			-			-			47
Total comprehensive income for the period		-			-			-			47			2,222,619			-			2,222,666
Transactions with shareholders
Annual dividends		-			-			-			-			(587,006)			-			(587,006)
Acquisition of treasury shares		-			-			-			-			-			(65,537)			(65,537)
Disposal of treasury shares		-			-			-			-			-			234,600			234,600
Consideration for exchange right of exchangeable bonds		-			-			(11,933)			-			-			-			(11,933)
Issuance of hybrid securities		-			399,045			-			-			-			-			399,045
Dividends on hybrid securities		-			-			-			-			(48,070)			-			(48,070)
Others		-			-			5,428			-			-			-			5,428
Total transactions with shareholders		-			399,045			(6,505)			-			(635,076)			169,063			(73,473)
Balance as of March 31, 2024	￦	2,090,558		￦	5,431,563		￦	14,748,242		￦	(6,762)		￦	5,924,441		￦	(996,774)		￦	27,191,268

The above separate interim statements of changes in equity should be read in conjunction with the accompanying notes.

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KB Financial Group Inc.

Separate Interim Statements of Cash Flows

Three-Month Periods Ended March 31, 2024 and 2023

(In millions of Korean won)
	Notes			2024			2023
Cash flows from operating activities
Profit for the period			￦	2,222,619		￦	2,182,927
Adjustment for non-cash items
Depreciation and amortization expense				1,526			1,446
Provision for credit losses				96			-
Share-based payments				4,573			1,098
Net interest expense				1,290			731
Valuation losses (gains) on financial assets
at fair value through profit or loss				(1,847)			(32,503)
Net other income (expense)				1,023			380
				6,661			(28,848)
Changes in operating assets and liabilities
Deferred income tax assets				(3,586)			10,692
Other assets				(417,743)			(2,038)
Other liabilities				(5,573)			(3,624)
				(426,902)			5,030
Net cash inflow from operating activities				1,802,378			2,159,109
Cash flows from investing activities
Disposal of financial assets at fair value through profit of loss				316,080			300,000
Increase in loans measured at amortized cost				(35,000)			-
Acquisition of property and equipment				(7)			(95)
Acquisition of intangible assets				(74)			(140)
Disposal of intangible assets				-			34
Net increase in guarantee deposits paid				1,607			78
Other investing activities				-			(161)
Net cash inflow from investing activities				282,606			299,716
Cash flows from financing activities
Increase in borrowings				365,000			-
Decrease in debentures				(370,000)			(410,000)
Redemption of principal of lease liabilities				(147)			(139)
Acquisition of treasury shares				(65,537)			(271,745)
Issuance of hybrid securities				399,045			598,537
Dividends paid on hybrid securities				(48,070)			(40,704)
Net cash inflow (outflow) from financing activities				280,291			(124,051)
Net increase in cash and cash equivalents				2,365,275			2,334,774
Cash and cash equivalents at the beginning of the period	23			116,334			231,053
Cash and cash equivalents at the end of the period	23		￦	2,481,609		￦	2,565,827

The above separate interim statements of cash flows should be read in conjunction with the accompanying notes.

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KB Financial Group Inc.

Notes to the Separate Interim Financial Statements

March 31, 2024 and 2023 (Unaudited), and December 31,2023

1. The Company

KB Financial Group Inc. (the "Company"), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfers with the former shareholders of Kookmin Bank, KB Investment

• Securities Co., Ltd., KB Asset Management Co., Ltd., KB Real Estate Trust Co., Ltd., KB Investment Co., Ltd., KB Futures Co., Ltd., KB Credit Information Co., Ltd., and KB Data Systems Co., Ltd., and the Company's main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The headquarter is located at 26, Gukjegeumyung-ro 8- gil, Yeongdeungpo-gu, Seoul. The Company's share capital as of March 31, 2024, is 2,090,558 million. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd., and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Company established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Company acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Company included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in June 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Company included Hyundai Securities Co., Ltd. as an associate in June 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd. The Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on June 30, 2023.

The Company has been listed on the Korea Exchange ("KRX") since October 10, 2008, and on the New York Stock Exchange ("NYSE") for its American Depositary Shares ("ADS") since September 29, 2008. Number of shares authorized on its Articles of Incorporation is 1,000 million.

2. Basis of Preparation

2.1 Application of Korean IFRS

The Company maintains its accounting records in Korean won and prepares statutory financial statements in the Korean language in accordance with International Financial Reporting Standards as adopted by the Republic of Korea ("Korean IFRS"). The accompanying separate financial statements have been translated into English from the Korean language separate financial statements.

The separate financial statements of the Company have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board ("IASB") that have been adopted by the Republic of Korea.

The preparation of separate financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Company's accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

The separate financial statements have been prepared in accordance with Korean IFRS No.1027 Separate Financial Statements.

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