KB Financial : 2020 3rd Quarter Earnings Release

3Q20 Business Results

October, 2020

Contents

1. 3Q20 Financial Highlights

1. 3Q20 Financial Analysis III. 3Q20 Asset Quality
   IV. 3Q20 Financial Highlights of Major Subsidiaries

V. Appendix

Disclaimer Statement

1. The consolidated financial information of KB Financial Group Inc. (the "Group") presented herein is based on the Korean International Financial Reporting Standards(K-IFRS). It is currently being reviewed by the Group's independent auditor, and accordingly, is subject to change.
2. The consolidated financial reports presented herein is based on Korean IFRS9(K-IFRS9). Note that the financial results for years before 2017 contained herein have not been restated retrospectively.
3. From 2018, for better peer comparison purpose, the Group reclassified certain interest income out of Net Gain/Loss on Financial Assets at FVPL under Other Operating Profit to Interest Income under Net Interest Income. Note that beginning from the financial results for 2017 contained herein have been restated retrospectively.
4. As KB Insurance and KB Capital became wholly-owned subsidiaries of the Group as of July 7, 2017, the financial results of KB Insurance and KB Capital have been fully consolidated in the Group's financial statements since 3Q17.
5. As Prudential Life Insurance became wholly-owned subsidiary of the Group as of August 31, 2020, the financial results have been fully consolidated in the Group's financial statements since 3Q20(one month period of September).
6. Total may not sum due to rounding.

Major non-recurringitems 2)

I. 3Q20 Financial Highlights _ Overview

Group Profitability Overview

	bn won, %	3Q20			3Q19	YoY		3Q20		2Q20		QoQ
	(Cumulative)		(Cumulative)
Net Interest Income			7,143.4		6,868.6			4.0		2,460.2		2,334.0		5.4
Net Fee & Commission Income	2,170.5	1,716.5			26.4		789.2		711.2	11.0
Other Operating Profit		-67.3	49.1			N.A.		-17.7		227.7		N.A.
Gross Operating Income		9,246.6	8,634.2			7.1		3,231.7		3,272.9		-1.3
G&A Expenses		4,646.2	4,456.7			4.3		1,600.6		1,586.4		0.9
Provision for Credit Losses		754.3	459.9			64.0		214.6		296.0	-27.5
Net Operating Profit		3,846.1	3,717.6			3.5		1,416.5		1,390.5		1.9
Net Non-Operating Profit		120.4	67.3			78.9		154.4		-14.3		N.A.
Profit for the Period		2,925.6	2,778.1			5.3		1,194.2		992.5		20.3
	Profit attributable to	2,877.9		2,777.1			3.6		1,166.6		981.8		18.8
	controlling interests

Group Net Profit 1) (bn won)

5-Year CAGR 19%

Highlights

Net Profit for 3Q20

1,166.6 bn

(+18.8% QoQ)

Increased 18.8% mostly driven by net interest and fee income growth & bargain purchase gain in addition to base effect from 2Q sizable preemptive provisions

Cumulative Interest Income for 3Q20

7,143.4 bn

(+4.0% YoY)

Continued modest growth of 4.0% YoY backed by consolidation of PRASAC(MDI Cambodia) as well as loan book momentum of the Bank and Card

Cumulative Net Profit for 3Q20

2,877.9 bn

(+3.6% YoY)

Increased 3.6% YoY mainly due to modest growth of interest income and significant increase of fee income, and highlighted solid earnings fundamental

Cumulative Fee Income for 3Q20

2,170.5 bn

(+454.0bn YoY)

Significantly expanded by 454bn YoY, largely supported by fee income growth of securities business

		3,311	3,312
		3,061
	2,144		+5.1%
		2,861
1,698
		2,722
1,401			2,878
			2,777

2014	2015	2016	2017	2018	2019	3Q19	3Q20
						(Cumulative)	(Cumulative)

Cumulative Credit Cost for 3Q20

0.25%

(0.20% on recurring basis)

Even after sizable preemptive provisioning, maintained stable level of credit cost under prudent risk management

• Non-recurringitems for 3Q20 (before tax)

Prudential Life Insurance

Added as subsidiary upon full

acquisition(31 Aug.)

Consolidated financial results for

3Q20(for 1 month of Sep.) with bargain purchase gain

• Net profit for 3Q20: W11bn
• Bargain purchase gain: W145bn

Note 1) Based on profit attributable to controlling interests

1. Major non-recurring items (after tax)
   3Q19(Cumulative): Large-scale reversals of provisioning(W74bn), ERP costs(W48bn), etc.
   3Q20(Cumulative): PEF related losses including TRS valuation losses (W29bn),
   CVA net losses(W12bn), Provisioning for receivables from brokerage business(W14bn), Large-scale of provisioning(W94bn), Provisioning for potential reimbursement related to investor's losses in PEF(W21bn) and non-recurring items in 3Q20 as stated at the bottom of the right side

• Bargain purchase gain related to the acquisition of Prudential Life: W145bn
• Disposal gain on overseas real estate investment: W42bn
• Gain on sale of loans: W15bn

2

I. 3Q20 Financial Highlights _ Key Financial Indicators (1)

Group ROA·ROE (%)

Loans in Won Growth (tn won, %)

NIM (%)

		11.49
	10.15	10.11	10.01
7.64		9.98

	3.0	4.2
		2.4	1.7
+8.6%292	269	280	287	292
269		134
	133
	121	128

1.88

1.83

		1.96
1.74	1.73	1.77

			0.81	9.76
5.53		0.72	0.75
0.56		0.70
0.41

2.5	5.5	4.2	0.8
148	152	154	158
3.4	3.2	1.0	2.4

1.61	1.56

		1.69
1.50	1.49	1.52

4Q19	1Q20	2Q20	3Q20	3Q19	3Q20
						(Cumulative)(Cumulative)
		ROA		ROE	ROE(Excl. Non-recurring items)

2019	2020.9	'19.12		'20.3	'20.6	'20.9
		Household					Corporate
		Total Growth(QoQ)					Household Growth(QoQ)
		Corporate Growth(QoQ)

4Q19

1Q20

2Q20

3Q20

3Q19

3Q20

(Cumulative)(Cumulative)

Group NIM

Bank NIM

Assured solid	Stable interest income stream
fundamental & profitability	led by solid loan growth

Prudent NIM management

• Cumulative ROE and ROA for 3Q20 recorded 9.76% and 0.70%, respectively
• Disregarding major one-off factors such as bargain purchase gain and 2Q20 large-scale preemptive provisionings, cumulative ROE for 3Q20 marked 10.01%, demonstrating solid fundamental and profitability
• Proved KB's diversified non-banking business portfolio and competency in asset management

• Loans in Won of the Bank continued quality growth by 8.6% YTD and 1.7% QoQ, amounting to W292tn
• Household loans increased 6.7% YTD and 2.4% QoQ mostly driven by Jeonse and unsecured loans
• Growth of corporate slowed down QoQ with 1.3% of stable increase of SME lendings mostly led by SOHO while large corporate lendings decreased by 1.9%

• 3Q20 Group NIM and Bank NIM recorded 1.73% and 1.49%, respectively
• Despite lowered asset yields reflecting decline of market rates, 3Q20 Bank NIM fell by only 1bp, which is largely attributable to decreased funding cost from expanded low-cost deposits
• While trying to secure proper margins, KB aims to diversify revenue sources and growth engines

3

I. 3Q20 Financial Highlights _ Key Financial Indicators (2)

Group Cost-Income Ratio(CIR) (%)

Credit Cost Ratio(CCR) (%)

Group BIS Ratio (Basel III, %)

70.2

55.2

57.4

51.8

54.5 54.9

50.5 50.9

50.3

48.3

					0.29
				0.25	0.25
0.22	0.20	0.21	0.20
		0.22
					0.14
					0.12
0.11	0.05			0.11	0.12
0.04	0.04

15.27	15.23
	14.60	14.48	14.08	14.24	14.69
	14.60
14.37
	13.97	13.86	13.29		13.65
	14.60		13.32
14.25	13.97
	13.58
		13.02		13.08
			12.91

2016 2017

CIR

2018 2019 3Q20

(Cumulative)

CIR(Excl. non-recurring items)

2016	2017	2018	2019	1Q20	2Q20	3Q20
		Group CCR			Bank CCR				Cumulative

2016	2017	2018	2019	'20.3	'20.6	'20.9(e)
		BIS	Tier1		CET1

Improving cost efficiency

• 3Q20 Group CIR recorded 49.5%, and 50.3% on cumulative basis
• Cumulative CIR for 3Q20, excluding non-recurring factors such as digitalization-related costs, decreased to 48.3%, demonstrating downward trend
• Pursue further improvement with an effort to expand revenue sources and save costs

Maintained solid asset quality against economic headwind

• 3Q20 Group CCR recorded 0.22%, and 0.25% on cumulative basis, demonstrating KB's high level of risk management
• Cumulative CCR for 3Q20, excluding non- recurring factors such as sizable preemptive provisionings in 2Q20, continued to secure stable level of 0.20%
• Maintained conservative asset quality management against prolonged COVID-19 pandemic and economic downturn

Industry-highest capital adequacy

• 3Q20 Group BIS and CET1 ratios are expected to improve to 14.69%, 13.08% respectively
• Maintained the industry-highest level of capital adequacy, even after the acquisition of Prudential Life, on the back of the early adoption of the Basel III as well as accumulation of earnings and strategic capital management
• 3Q20 Bank BIS and CET1 ratios are expected to record 17.22%, 15.08% respectively

4

II. 3Q20 Key Takeaways _ Prudential Life Insurance

"Best-in-Class" Life Insurance Service Provider

PAI and Mid to Long-term Strategy

Life Insurance Services Delivering Changes for Better World

Industry-leading Financial Position

		Prudential	Industry Average, (%)
The industry- highest	461.8	423.7	456.4
RBC ratio
('18 →'20.6)	271.2	284.6	292.6

Post-

Acquisition Integration

'Smooth settle down Value-up' under group umbrella

• Operate independently to ensure smooth transition
• Maximize Prudential Life's full potential as a financially strong insurance company with the best Life Planner network and the most stable investment portfolio

Market-leading	83.4	86.9	87.9
13th policy persistency rate
('18 →'20.6)	80.7		82.5
	80.1
Prevailing loss ratio	82.9	86.2	85.3
over market

Mid to	· Reinforce customer-centricity
Long-term	· Establish a premium business model connecting Prudential Life
Strategy	Planners with KB's diverse financial services
	· Elevate customer satisfaction through digital innovation

Acquisition Effect and Potential Synergy

('18→'20.6)
53.6	52.3	51.8

	Stable investment
	yield	3.5	3.9
	(Average of recent 3 years)
Outstanding Sales Professionals, Life Planner ®

Diversified portfolio

2019			3Q201)
		30.8%	40.3%
69.2%			59.7%
	Banking		Non-banking (based on net profit)

1) Including 3Q20 cumulative net profit of Prudential

Scale-up of insurance business

9%	12%	out of total group asset
7%	11%	out of group net profit

5th largest life insurance company

(based on sum of net profits of Prudential Life and KB Life in 2019)

Superior 13th registration settlement rate

Prudential	※ 13th registration settlement rate: 52.8%
Industry 52.8%	The first life insurer in Korea to introduce the financial insurance experts
Average	system(Life Planner®) with professional training system
41.2%

The highest ratio of certified insurance consultants for 13 consecutive years

• The ratio of certified insurance consultants: 32.5%
  2,054 (as of 2019) most qualified sales professionals providing the best life insurance services

Expected Synergy

Sales Channel Maximize synergy between KB Life's strong bancassurance channel and Prudential Life's Life Planner network

Cross-Sell Utilize Prudential Life Planners as outbound marketing channel to widen cross-selling opportunities in investment and wealth management products, as well as other insurance products

Premium Services Provide a group-wide network of premium services in real estate, tax management, and legal services to Prudential Life's affluent customer base of 650 thousand customers

Asset Management Enhance the group's asset management business based on increased AUM from Prudential Life

5

II. 3Q20 Financial Analysis _ Net Interest Income

Group Net Interest Income

	bn won, %		3Q20		3Q19	YoY	3Q20		2Q20	QoQ
			(Cumulative)		(Cumulative)
Interest Income		10,800.5		11,012.0		-1.9	3,578.8		3,601.7	-0.6
	Loans		9,110.2	9,253.9		-1.6	3,031.6				-1.4
				3,075.6
	Financial Investments		1,471.7	1,535.3		-4.1	480.9		479.2	0.4
	Others		218.6	222.8		-1.9	66.3		46.9	41.4
Interest Expense		3,657.1	4,143.4		-11.7	1,118.6		1,267.7	-11.8
	Deposits		2,252.4	2,650.9		-15.0	677.3				-13.9
				786.2
	Debts & Debentures		1,337.5	1,396.8		-4.2	423.4		460.2	-8.0
	Others		67.2	95.7		-29.8	17.9		21.3	-16.0
Net Interest Income		7,143.4	6,868.6		4.0	2,460.2		2,334.0	5.4

Net Interest Income (bn won)

			8,905	9,197
		8,247		457
				478		7,143
					1,230	6,869
	6,403	534			1,168	+4.0%	370
6,203			616		341
520	1,084		616		939
487	465			530		915
981			542			464
980	599						465	377
24	73							401
4,712	4,829	5,565			6,101	6,364		4,747	4,993
2015	2016	2017		2018		2019	3Q19		3Q20
							(Cumulative) (Cumulative)
Bank	Securities	Insurance		Card	Others(Incl. adjustment for consolidation)

Note) Based on each subsidiary's Net Interest Income on the financial statements for group reporting

Loan Growth (tn won, %)

				280	287	292
			269
258	260	261
						8.6
					6.8
			4.5
	0.9	1.4		4.2
		3.0	2.4
				1.7
0.3	0.7	0.5
'19.3	'19.6	'19.9	'19.12	'20.3	'20.6	'20.9
	Bank Loans in Won	Growth(QoQ)		Growth(YTD)

NIM (%)

1.98 1.97

		1.94
		1.94
1.71			1.83
1.70	1.88	1.77

1.67	1.74	1.73
1.67
1.56
	1.52

1.61

1.50 1.49

1Q19	2Q19	3Q19	4Q19	1Q20		2Q20	3Q20
			Group NIM		Bank NIM					Cumulative

6

II. 3Q20 Financial Analysis _ Net Non-Interest Income

			Group Net Non-Interest Income													Fee Income Contribution (Cumulative)
				bn won, %		3Q20		3Q19	YoY	3Q20			2Q20		QoQ
					(Cumulative)		(Cumulative)
	Net Fee & Commission Income		2,170.5	1,716.5		26.4		789.2			711.2	11.0
		Credit Card Fees		374.4		289.8		29.2		128.0			133.9		-4.4								37.0%
		Trusts		358.8	410.5		-12.6		122.9			99.4	23.6
		Agent Activity Fees		147.9	123.7		19.6		51.0			46.9	8.7		49.1%		3Q19	50.9%	3Q20
		(Incl. Bancassurance)
		Represent Securities		126.5	111.6	13.4		44.7			41.4	8.0											63.0%
		(Incl. ITC Products)
		Banking Activity Fees		142.6	163.6		-12.8		46.5			46.2	0.6
		Securities Business		588.4	321.2		83.2		250.5			193.1	29.7
		Others		431.9	296.1		45.9		145.6			150.3	-3.1								Bank		Non-Bank
	Other Operating Income		-67.3	49.1		N.A.	-17.7			227.7		N.A.		Note) Based on simple arithmetic sum of each subsidiary's Net Fee & Commission Income
	Net Non-Interest Income		2,103.2		1,765.6		19.1		771.5			938.9		-17.8
								on the financial statements for group reporting
				Net Fee & Commission Income (bn won)									Composition of Fee Income (Cumulative, bn won)

			2,243	2,355
		2,050
			229	380	+26.4% 2,171
			240
1,535	1,585		265	262	1,717		405
	133
						273
	172	212	552	626	580	271
	109	92	173	680
	98	193
				426
	1,156	1,088	1,125	1,123	1,133			813
						847
2015	2016	2017	2018	2019		3Q19	3Q20
						(Cumulative)	(Cumulative)
	Bank	Securities	Card	Others(Incl. adjustment for consolidation)

69
173	291
113	428

	Bank		Non-Bank
140	170	215
			253
	148	200
Bancassurance	Mutual Fund Sales, etc.	Brokerage	Credit Card	Trusts
Trusts	Banking Activities	IB	Others

Credit Card Services Others(Incl. FX, etc.)

Note) Based on each subsidiary's Net Fee & Commission Income on the financial statements for group reporting

Note) Based on simple arithmetic sum of each subsidiary's Net Fee & Commission Income on the financial statements for group reporting

7

II. 3Q20 Financial Analysis _ G&A Expenses & Provision for Credit Losses

Group G&A Expenses

bn won, %	3Q20		3Q19		YoY	3Q20		2Q20	QoQ
(Cumulative)	(Cumulative)
Employee Benefits	2,877.5		2,796.8	2.9		1,007.8		991.2	1.7
Depreciation & Amortization	634.2		558.3	13.6		217.9		204.6	6.5
Administrative Expenses	958.7		937.3	2.3		320.9		321.1	-0.1
Others	175.8		164.3	7.0		54.0		69.5	-22.3
G&A Expenses	4,646.2		4,456.7	4.3		1,600.6		1,586.4	0.9

Group Provision for Credit Losses

bn won, %		3Q20		3Q19	YoY	3Q20		2Q20	QoQ
	(Cumulative)	(Cumulative)
Provision for Loan Losses		712.8	452.7		57.5			214.9		254.4	-15.5
Provision for Guarantees		-26.1	8.2		N.A.	-18.5		-7.1		N.A.
Provision for Unused Commitments		67.6	-3.4		N.A.	16.7		50.4	N.A.
Provision for Financial Guarantee Liabilities		0.0	2.4		N.A.	1.5		-1.7		N.A.
Provision for Credit Losses		754.3	459.9	64.0			214.6		296.0		-27.5

G&A Expenses & CIR (bn won, %)				Provision for Credit Losses & CCR (bn won, %)

61.3	70.2
	55.2	54.5	54.9	51.6		0.44
		50.3
	57.4
											0.25
56.0
	51.8		50.9				0.22	0.20	0.21	0.20	0.19
		50.5	49.8
			48.3	1,037
				6,271
			5,919
	5,229	5,629
4,524			5,787	4,457	4,646							754
	5,284	5,485				674	670
							548
4,135	4,188				4,279	4,462		539			460
2015	2016	2017	2018	2019	3Q19	3Q20	2015	2016	2017	2018	2019	3Q19	3Q20
					(Cumulative) (Cumulative)						(Cumulative)	(Cumulative)
G&A Expenses	Non-recurring items	CIR	CIR(Excl. non-recurring items)			Provision for Credit Losses		CCR

Note) Non-recurring items include ERP, digitalization costs, etc.

8

II. 3Q20 Financial Analysis _ Financial Position Overview

Group Financial Position

	tn won, %	2020.9	2020.6		QoQ 2019.12	YTD
Assets	605.5	569.5	6.3	518.5		16.8
	Cash & Due from Financial Institutions	25.4	22.5	12.9	20.8		22.1
	FVTPL1) Assets	58.8	58.7	0.2	53.5		9.9
	Financial Investments	96.7	74.8	29.3	71.8		34.7
	Loans	378.1	367.9	2.8	339.7		11.3
	Property & Equipment	8.6	7.9	8.9	7.9		8.9
	Other Assets			37.9	37.7	0.5	24.8		52.8
Liabilities			563.4		529.2		6.5		479.4		17.5
	FVTPL1) Liabilities	13.3	13.4	-0.7	15.4		-13.6
	Deposits	338.0	327.7	3.1	305.6		10.6
	Debts	47.8	46.9	1.9	37.8		26.5
	Debentures	60.3	57.4	5.1	50.9		18.5
	Other Liabilities			104.0	83.8	24.1	69.7		49.2
Shareholder's Equity			42.1		40.3		4.5		39.1		7.7
	Share Capital	2.1	2.1	-	2.1		-
	Hybrid Securities	1.2	0.8	50.0	0.4		200.0
	Capital Surplus	16.7	16.7	0.0	17.1		-2.3
	Accumulated Other	0.4	0.3	33.3	0.3		33.3
	Comprehensive Income
	Retained Earnings	21.9	20.8	5.3	19.7		11.2
	Treasury Shares	-1.1	-1.1		N.A.	-1.1		N.A.
	Non-Controlling Interests	0.9	0.7	28.6	0.6		50.0
Group Total Assets 2)	908.4	873.5	4.0	789.8		15.0
	AUM 3)			302.7		304.7		-0.7		271.1		11.7

Note 1) Fair Value Through Profit or Loss

1. Based on simple arithmetic sum of each subsidiary's total assets on the financial statement for group reporting and AUM
2. Including the Bank's trust asset not subject to group reporting

Group Assets (tn won)

							605.5
						518.5	25.9
				479.6			24.4
					23.7	24.3
			436.8		22.2	23.0	38.1
				36.6
				19.5	20.5
					55.8
		375.7		34.8	47.8
			17.7
329.1		20.4		32.4	45.1
16.6	15.8		37.4
	16.1	32.4				387.4	437.0
	6.1			329.8	357.0
		307.1
	290.3
2015		2016	2017	2018		2019	2020.9
Bank	Securities	Insurance	Card	Prudential	Others(Incl. adjustment for consolidation)

Note) Based on each subsidiary's total assets on the financial statements for group reporting

Group AUM (tn won)

				271.1		302.7
			252.7
		234.9		28.4	29.0
	216.6	30.8
				83.3
		25.8
	22.4			59.2
		51.0
	50.6
	52.7
120.4
					135.9
19.1			123.3		131.8
	115.2
97.8
47.5
19.6		43.3	47.6		51.7	54.5
34.2	43.7
2015	2016	2017	2018	2019		2020.9

Bank Trust		Securities		Asset Management		Real Estate Trust & others

9

II. 3Q20 Financial Analysis _ Assets & Liabilities

Bank Loans in Won

		tn won, %	2020.9		2020.6		QoQ	2019.12		YTD
	Household	157.8		154.1	2.4	147.9		6.7
		Mortgage		83.3		82.1		1.5	77.2		7.9
		General	74.5		72.0	3.5	70.7		5.4
		[Home Equity]	30.7		31.0	-1.0	31.8		-3.5
	Corporate	134.3		133.2	0.8	121.1		10.9
		SME		113.1		111.6		1.3	103.3		9.5
		[SOHO]	75.1		74.0	1.5	69.2		8.5
		Large Corp, etc.	21.2		21.6	-1.9	17.8		19.1
	Total	292.1		287.2	1.7	269.0		8.6

Loan Portfolio (tn won, %)

207.3	220.6		234.9	257.4	269.0	292.1
	7.3
	7.6	6.8	7.0	6.6
	8.2	13.0
	12.1	12.4	12.6	12.7
	12.9
	23.3	24.4	25.6	25.5	25.7	25.7
	29.9	29.4	28.8	27.7	26.3	25.5
	25.8	26.5	26.4	27.2	28.7	28.5
2015	2016		2017	2018	2019	2020.9
	Mortgage	General	SOHO	SME(Excl. SOHO)	Large Corp, etc.

Bank Deposits & Debentures in Won

	tn won, %	2020.9		2020.6		QoQ	2019.12		YTD
Deposits	302.9		297.9	1.7	281.6		7.6
	Core Deposits	146.6		139.8		4.9	124.5		17.8
	Time & Savings	153.0		153.6	-0.4	152.9		0.1
	[Time Deposits]	140.2		141.0	-0.6	139.3		0.6
	CD, RP, etc.	3.3		4.5	-26.7	4.2		-21.4
Debentures	16.9		15.5	9.0	13.0		30.0
Total	319.8		313.4	2.0	294.6		8.6

Card Assets

	tn won, %	2020.9	2020.6		QoQ	2019.12		YTD
Credit Card	18.4	17.7		4.0	18.6	-1.1
	Credit Sales		11.9		11.3	5.3	12.0	-0.8
	[Installments]	5.2	5.0		4.0	5.1	2.0
	Card Loans	5.4	5.3		1.9	5.3	1.9
	Cash Advance	1.1	1.1		0.0	1.2	-8.3
Factoring, etc.	4.0	3.7		8.1	3.3	21.2
Total	22.4	21.4		4.7	21.9	2.3

10

III. 3Q20 Asset Quality _ Group Overview

Group Asset Quality

Precautionary & Below Ratio / NPL Ratio (%)

	bn won, %	2020.9		2020.6		QoQ	2019.12		YTD
Total Loans for NPL Classification	362,674.6	355,479.6	2.0	334,552.5	8.4
	Precautionary	2,439.7		2,440.4	0.0	2,608.4	-6.5
	Substandard	770.1	761.6	1.1	662.5	16.2
	Doubtful	576.8		600.7	-4.0	700.9	-17.7
	Estimated Loss	308.6	355.5	-13.2	288.4	7.0
Substandard & Below Loans(NPL) (A)	1,655.5		1,717.8	-3.6	1,651.8	0.2
NPL Ratio	0.46%		0.48%	-0.02%p	0.49%	-0.03%p

1.39 1.40 1.38

0.60	0.59	0.55

1.27	1.26
	1.17
		1.13
0.49	0.50	0.48	0.46

Loan Loss Reserves (B)	2,455.9	2,480.7	-1.0	2,430.0	1.1
NPL Coverage Ratio Ⅰ (B/A)	148.3%	144.4%	3.9%p	147.1%	1.2%p
Reserves for Credit Lossess (C)	2,702.9	2,612.7	3.5	2,555.2	5.8
NPL Coverage RatioⅡ[(B+C)/A]	311.6%	296.5%	15.1%p	301.8%	9.8%p

Note) Based on simple arithmetic sum of each subsidiary's figures

Credit Cost Ratio (%)

'19.3	'19.6	'19.9	'19.12	'20.3	'20.6	'20.9
			Precautionary & Below Ratio				NPL Ratio

NPL Coverage Ratio(Ⅰ ) (%)

2.23 2.06 2.15 2.14

0.21	0.15	0.21	0.25
0.05	-0.03	0.06	0.08

2.03	1.96
	1.05
0.25	0.29	0.22
0.11	0.12	0.14

						288.0
268.6	262.4	246.6	263.4	249.6	249.8
			147.1	141.4	144.4	148.3
138.2		135.6
132.8
			130.2		134.5	140.4
120.2		118.1	126.7
115.3

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

3Q20

Group Bank Card

'19.3	'19.6	'19.9	'19.12	'20.3	'20.6	'20.9
		Group	Bank	Card

11

III. 3Q20 Asset Quality _ Bank & Card

Bank Asset Quality

	bn won, %	2020.9		2020.6		QoQ	2019.12		YTD
Total Loans for NPL	312,718.4	307,691.5	1.6			288,896.7	8.2
Classification
	Precautionary	1,038.0	1,058.9	5.0			1,249.2	-16.9
	Substandard	603.9	619.1	-2.5			590.4	2.3
	Doubtful	257.9	269.5	-4.3			350.2	-26.4
	Estimated Loss	131.3	132.3	-0.8			116.6	12.6
NPL Ratio	0.32%		0.33%		-0.01%p	0.37%	-0.05%p
NPL Coverage Ratio	140.4%		134.5%		5.9%p	130.2%	10.2%p

Delinquency Ratio (%)

1.24	1.23	1.20	1.32	1.25	1.16	1.24
						1.11

0.35	0.24	0.23	0.27	0.26	0.29	0.24	0.24
2016	2017	2018	'19.3	'19.6	'19.9	'19.12	'20.3
				Bank	Card

1.08	0.99

0.21 0.20

'20.6 '20.9

Card Asset Quality

NPL Ratio (%)

	bn won, %	2020.9		2020.6		QoQ	2019.12		YTD
Total Loans for NPL	22,394.7	21,446.6	4.4		21,922.4	2.2
Classification
	Precautionary	824.9	759.7	8.6		875.1	-5.7
	Substandard	4.4	4.1	6.9		3.6	22.2

1.30	1.40	1.38
0.74	0.58	0.48

1.46

1.46

1.49

0.47 0.45 0.41

1.51 1.48

1.37

1.17

0.37 0.36 0.33 0.32

			Doubtful						182.5		206.0				-11.4				223.0			-18.2
			Estimated Loss						75.6		106.7				-29.1				73.0			3.6
		NPL Ratio						1.17%		1.48%				-0.31%p	1.37%		-0.20%p
		NPL Coverage Ratio	288.0%		249.8%				38.2%p	263.4%			24.6%p
			Provision for Loan Losses
			bn won, %		3Q20	3Q19		YoY	3Q20	2Q20	QoQ
			(Cumulative)	(Cumulative)
	Bank		279.6	59.1	373.1	107.5	93.4	15.1
			Household		202.0	174.8	15.6	44.6	90.0	-50.4
			Corporate		77.6	-115.7		N.A.	62.9	3.4	1,750.0
	Card		271.9	316.9	-14.2	58.2	104.7	-44.4

2016

2017

2018

'19.3

'19.6

'19.9

'19.12

'20.3

'20.6

'20.9

Bank Card

Bank Credit Cost Ratio (%)

0.22			0.16	0.14	0.19	0.19	0.18	0.24	0.16
	0.10	0.13
0.11					0.11	0.12	0.14
0.05	0.04	0.05		0.06	0.08
	-0.03			0.11
0.01	0.01					0.03	0.01
-0.06	-0.06		-0.08	-0.04
		-0.20

2016	2017	2018	1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20
				Total		Household		Corporate

12

3Q19 3Q20

(Cumulative) (Cumulative)

Major non-recurringitems

IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Kookmin Bank

Profitability Overview 1)		Net Interest Income & NIM (bn won, %)

bn won, %	3Q20		3Q19	YoY		3Q20		2Q20		QoQ
(Cumulative)		(Cumulative)
Net Interest Income	4,992.9		4,747.4		5.2		1,717.2		1,638.2	4.8
Net Fee & Commission Income	813.2		846.7		-4.0		270.2		257.2	5.1
Other Operating Profit	-9.9		-96.2		N.A.		-18.8		135.8		N.A.
Gross Operating Income	5,796.2		5,497.9		5.4		1,968.6		2,031.2	-3.1
G&A Expenses	2,815.2		2,721.0		3.5		939.9		988.1	-4.9
Provision for Credit Losses	333.4		55.5		500.7		117.4		139.4	-15.8
Net Operating Profit	2,647.6		2,721.4		-2.7		911.3		903.7	0.8
Net Non-Operating Profit	-69.2		3.1		N.A.		-43.4		9.4		N.A.
Profit for the Period 2)	1,882.4		2,006.7		-6.2		635.6		660.5	-3.8

Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests

Net Profit (bn won)

2,259 2,439

2,175

-1.2%1,954

1,979

1,107 964

2,007 1,882

2015 2016 2017 2018 2019

Note) Major non-recurring items (after tax)

3Q19(Cumulative): Reversals of provisioning(W77bn), ERP costs(W35bn),

Additional provisioning in response to changes in retail credit scoring system(W14bn) 3Q20(Cumulative): Preemptive provisioning based on FLC(W115bn),

Large-scale reversals of provisioning(W55bn), CVA net losses(W12bn)

		1.71	1.71	1.67	1.69
1.61
1.58
					1.52
				6,364
			6,101
4,712	4,829	5,394			4,747	4,993
2015	2016	2017	2018	2019	3Q19	3Q20
		Net Interest Income	NIM	(Cumulative) (Cumulative)

Net Fee & Commission Income (bn won)

1,156	1,088	1,225	1,123	1,133
	266
	208
242	253	57	228	847
101	47	66	813
79	148
176	147	129
160	157	225	204	200	51	173
239	222	98	69
235	195	210	148	113
173
182				165	140
	306	287	308	148
241	182	237
170

2015

2016

2017

2018

2019

3Q19

3Q20

(Cumulative) (Cumulative)

Trusts

Banking Activities

Card Services

Mutual Fund Sales

Bancassurance

FX, etc.

CIR (bn won, %)	CCR (bn won, %)
49.5		0.12
48.6	0.03
		333
2,721	2,815
		56

3Q19	3Q20	3Q19	3Q20
(Cumulative) (Cumulative)	(Cumulative) (Cumulative)
G&A Expenses	CIR	Provision for Credit Losses	CCR

13

IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Securities

Profitability Overview 1)		Net Fee & Commission Income (bn won)

	bn won, %	3Q20			3Q19	YoY	3Q20		2Q20		QoQ
	(Cumulative)			(Cumulative)
	Net Fee & Commission Income	680.1	426.3		59.5			280.9		224.9	24.9
	Brokerage	427.8	184.2		132.2			183.0		146.6	24.8
	Investment Banking	214.6	185.6		15.6			84.7		63.3	33.8
	Financial Products	42.2	50.5		-16.4			14.8		13.3	11.3
	Others	-4.5	6.0		N.A.	-1.7		1.7		N.A.
	Interest Income	377.1	400.7		-5.9			132.7		120.2	10.4
	Trading	-6.5	5.9		N.A.	26.5		91.6	-71.1
	G&A Expenses	588.1	556.4		5.7			205.4		201.0	2.2
	Provision for Credit Losses	23.5	10.0		135.0			-0.3		3.0		N.A.
	Net Operating Profit	439.1	266.5		64.8			235.0		232.7	1.0
	Net Non-Operating Profit	26.7	43.5		-38.6			47.4		-23.6		N.A.
	Profit for the Period 2)	338.5	224.7		50.6			209.7		150.2	39.6

Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests

		Net Profit (bn won)
				361
272		258	+60.5%
	179			339
			225
2017	2018	2019	3Q19	3Q20
			(Cumulative)	(Cumulative)

Major non-recurring items

Note) Major non-recurring items (after tax)

3Q20(Cumulative): PEF related losses including TRS valuation losses (W29bn), Provisioning for receivables from brokerage business(W14bn)

Provisioning for potential reimbursement related to investors' losses in PEF(W21bn), Disposal gain on overseas real estate investment(W30bn), Gains on sale of loans(W11bn)

552	625	580		680
56			37
48	68	426
215
215	216	267	56
	353		186
288	245		428
			184
2017	2018	2019	3Q19	3Q20
			(Cumulative)	(Cumulative)

	Brokerage	IB	Sales of Financial Products, etc.
		Retail AUM (tn won)		94
					83
			74	69
61	64			31
			30
			29	28
15	20
46	44		45	41	53	63
2017	2018		2019	'20.3	'20.6	'20.9
			Brokerage	WM

Assets under WM

tn won, %	2020.9		2019		2018		3.2%
Bonds	18.0		14.1	10.3	21.8%
Trusts	6.9		6.1	4.2
Funds	5.7		6.7	4.1
ELS/DLS	1.0		1.5	1.8						57.0%
									18.0%
Total	31.6		28.4	20.4
											Bonds		Trusts			Funds		ELS/DLS

14

IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Insurance

Profitability Overview 1)

bn won, %		3Q20		3Q19	YoY	3Q20		2Q20	QoQ
	(Cumulative)	(Cumulative)
Direct Premium Written		8,195.8	7,668.7	6.9		2,728.8		2,729.5	0.0
Net Premium Earned		7,109.6	6,858.5		3.7		2,405.4		2,369.4	1.5
Loss Ratio		85.4%	84.8%	0.6%p	85.2%		84.4%	0.8%p
Expense Ratio		20.8%	22.4%	-1.6%p	21.1%		20.7%	0.4%p
Underwriting Profit		-442.2	-495.0	N.A.	-152.0		-120.1	N.A.
Investment Income		647.5	736.0	-12.0		198.2		193.5	2.4
Profit for the Period 2)		186.6	233.9	-20.2		42.6		66.8	-36.2
RBC Ratio		187.9%	193.7%	-5.8%p	187.9%		187.7%	0.2%p

Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests

Net Profit & EV 1) (bn won)

7,937

330

6,807

6,607

2624,712

Direct Premium Written

bn won	3Q20		2019	2018
(Cumulative)
Long Term			5,437.7		7,083.3		6,883.2
Protection	4,986.5		6,361.5	6,014.0
Savings	451.2		721.8	869.2
Auto	1,934.4		2,206.7	2,035.3
General	823.7		982.8	931.7
Total	8,195.8		10,272.8	9,850.2

Asset Portfolio

bn won		2020.9		2019		2018
Cash & Due		294.8		559.2	746.1
Securities	22,515.8		20,633.0	18,741.2
Bonds	12,510.8		10,715.7		9,871.9
F/C Securities	3,544.6		4,243.2		4,365.1
Equities, etc.	6,460.4		5,674.1	4,504.1
Loans	6,836.8		6,872.1	6,873.7
Real Estate	923.8		943.1	968.0
Total	30,571.2		29,007.4	27,329.0

10.1%

23.6%

5.5%60.8%

LT(Protection) LT(Savings)

Auto General

3.0%	1.0%
22.4%	40.9%

21.1%		11.6%
Cash & Due	Bonds	F/C Securities
Equities, etc.	Loans	Real Estate

3,152	234	234
		187

88.3

Loss Ratio (%)

92.0

88.0

86.1

97.4

88.1

2017	2018	2019		3Q19 2)	3Q20 2)
					(Cumulative)	(Cumulative)
			Net Profit		EV

83.4	84.2
82.2	84.0
80.7
71.3	71.0
2017	2018

	86.6
85.1	84.7

75.7

74.9

2019 1Q20

84.4 85.2 85.2

84.2 84.6

82.0

2Q20 3Q20

Note 1) EVs are based on identical assumptions sets	Total	Long Term	Auto	General
2) EVs are figures as of the end of September of each year

15

IV. 3Q20 Financial Highlights of Major Subsidiaries _ KB Kookmin Card

Profitability Overview 1)		Card Transaction Volume (tn won)

bn won, %	3Q20			3Q19		YoY	3Q20		2Q20	QoQ
(Cumulative)			(Cumulative)
Operating Revenue		2,979.1	2,908.4	2.4			992.5		997.7	-0.5
Card		2,611.2	2,571.1	1.6			874.2		876.5		-0.3
Installment & Lease Financing	80.1	53.5	49.7			30.8		25.3	21.7
Others	287.8	283.8	1.4			87.5		95.9	-8.8
Operating Expense	1,984.1	1,974.1	0.5			677.5		656.5	3.2
Interest Expense	272.1	260.9	4.3			92.6		88.6	4.5
Commissions & Other Expenses	1,712.0	1,713.2	-0.1			584.9		567.9	3.0
Gross Operating Income	995.0	934.3	6.5			315.0		341.2		-7.7
G&A Expenses	349.3	306.0	14.2			120.6		117.0	3.1
Provision for Credit Losses	296.9	324.8	-8.6			68.9		111.9	-38.4
Net Operating Profit	348.8	303.5	14.9			125.5		112.3	11.8
Net Non-Operating Profit	-3.3	-4.3		N.A.	-1.5		-1.0	N.A.
Profit for the period 2)	255.2	251.0	1.7			91.4		81.7	11.9

Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests

Net Profit (bn won)

355
	317	297		317
		287
					255
					251
2015	2016	2017	2018	2019	3Q19	3Q20
					(Cumulative) (Cumulative)

33.0	35.0	36.0	36.7	34.1	35.7	36.4
8.9
8.3	8.6	9.0	8.2	8.4	8.7
24.7	26.4	27.0	27.8	25.9	27.3	27.7
1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20

		Card Assets			Credit Card			Check Card
		bn won		2020.9		2019				2018		17.9%
Credit Card		18,387.8		18,591.9	17,309.3
		Credit Sales		11,917.5		12,038.2	11,110.0
		[Installments]		5,215.9		5,127.4			4,793.7		24.2%							53.2%
							5,411.8		5,345.4			4,942.2
		Card Loans
		Cash Advance		1,058.5		1,208.2			1,257.1		4.7%
Others		4,002.9		3,312.6			2,154.5
																										Credit Sales						Cash Advance
Total		22,390.7		21,904.5	19,463.8
						Card Loans						Factoring, etc.
		Funding
		bn won		2020.9				2019					2018		5.1%
																							10.3%
Borrowings		846.3				1,129.2					620.1
Debentures		14,058.4				13,353.2			12,083.6
ABS		1,706.1				1,460.3				970.0
Total		16,610.8				15,942.7		13,673.7												84.6%
																									Borrowings		Debentures		ABS

16

IV. 3Q20 Financial Highlights of Major Subsidiaries _ Prudential Life Insurance

Profitability Overview 1)

bn won, %	3Q20		3Q19	YoY		3Q20		2Q20		QoQ
(Cumulative)		(Cumulative)
Net Interest Income	27.2		-		-		27.2		-	-
Net Fee & Commission Income	-0.8		-		-		-0.8		-	-
Other Operating Profit	21.4		-		-		21.4		-	-
Gross Operating Income	47.8		-		-		47.8		-	-
G&A Expenses	31.9		-		-		31.9		-	-
Provision for Credit Losses	0.3		-		-		0.3		-	-
Net Operating Profit	15.6		-		-		15.6		-	-
Net Non-Operating Profit	0.0		-		-		0.0		-	-
Profit for the Period 2)	11.1		-		-		11.1		-	-
RBC Ratio	486.4%		-		-		486.4%		-	-

Note 1) Based on financial statements for group reporting 2) Profit attributable to controlling interests

Net Profit 1) (bn won)

				242
176
	164		146
		141
2017	2018	2019	3Q19	3Q202)
			(Cumulative)	(Cumulative)

Note 1) Based on financial statements of Prudential Life Insurance, for better comparison purposes, which differs from the financial results for group reporting contained in Profitability Overview

2) Including disposal gain on private placement bonds W143bn(after tax)

New Business APE (Annualized Premium Equivalent)

																0.2%
		bn won			3Q20		2019	2018
				(Cumulative)
Protection			87.6		129.7		115.7		47.0%
Annuities			78.1		122.6	91.9
Savings			0.3		0.6	1.9
																															52.8%
Total			166.0		252.9	209.6
		Invested Assets									Protection			Annuities			Savings
		bn won			2020.9			2019		2018			5.3% 0.5%								3.4%
Cash & Due	595.5			241.4		67.6	1.7%
Securities	15,958.5			15,091.5	13,814.2	4.4%
	Bonds	14,878.6			14,197.6	13,168.8
	F/C Securities	779.7			585.7	268.5
	Equities, etc.	300.2			308.2		376.9
Loans	938.5			995.2		956.6																84.6%
Real Estate	91.6			93.2		95.2
Total	17,584.1			16,421.3	14,933.6			Cash & Due		Bonds			F/C Securities
																		Equities, etc.			Loans				Real Estate

Mortality Margin & Loss Ratio (%, bn won)

			58.3		55.4
54.4	53.6	52.3
				40.5
147	157	168
			38	54	41
2017	2018	2019	1Q20	2Q20	3Q20
		Mortality Margin	Loss Ratio

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V. Appendix _ Overview of Group Subsidiaries 1) (3Q20)

bn won		Ownership		Total Assets	Shareholder's Equity	Profit for the Period		ROA2)		ROE2)
KB Kookmin Bank	100.0%
	437,038.8		29,512.7	1,882.4	0.61%	8.67%
KB Securities	100.0%			55,843.0		4,998.3			338.5			0.84%		9.47%
KB Insurance	100.0%			38,082.9		4,114.1			186.6			0.67%		6.23%
KB Kookmin Card	100.0%			24,292.3		4,201.9			255.2			1.46%		8.33%
Prudential Life Insurance	100.0%			24,408.3		2,535.9			11.1			1.50%3)		10.93%3)
KB Asset Management	100.0%			413.3		205.4			39.4			14.01%		27.78%
KB Capital	100.0%			12,326.6		1,410.2			114.8			1.32%		12.17%
KB Life Insurance	100.0%			10,213.7		631.4			9.2			0.12%		1.97%
KB Real Estate Trust	100.0%			420.4		318.3			55.5			18.94%		24.79%
KB Savings Bank	100.0%			1,700.7		222.0			13.2			1.17%		8.14%
KB Investment	100.0%			850.8		231.2			16.5			2.78%		10.11%
KB Data Systems	100.0%			42.7		20.8			0.1			0.31%		0.63%
KB Credit Information	100.0%			28.3		15.2			0.3			1.42%		2.67%

Note 1) Based on each subsidiary's financial statements for group reporting 2) Annualized 3) Based on separate financial statements of Prudential Life Insurance

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V. Appendix _ Condensed Income Statement by Subsidiaries

bn won			Group								3Q20(Cumulative)
	KB Kookmin	KB Securities		KB Insurance	KB Kookmin	Prudential Life	KB Asset		KB Capital	KB Life	Others 1)
					Bank						Card	Insurance	Management				Insurance
Net Interest Income		7,143.4		4,992.9		377.1		464.5	938.9	27.2	2.2	241.8	109.6	-10.8
Net Fee & Commission Income	2,170.5	813.2		680.1	-127.7	273.4	-0.8	92.9	380.1	-11.2	70.5
Other Operating Profit		-67.3	-9.9		-6.5	525.2	-217.3	21.4	2.2	-293.2	-36.9	-52.3
Gross Operating Income		9,246.6		5,796.2		1,050.7		862.0	995.0	47.8	97.3	328.7	61.5	7.4
G&A Expenses		4,646.2		2,815.2		588.1		622.4	349.3	31.9	43.2	82.3	50.5	63.3
Provision for Credit Losses		754.3	333.4		23.5	-6.3	296.9	0.3	0.0	93.5	-0.9	13.9
Net Operating Profit		3,846.1		2,647.6		439.1		245.9	348.8	15.6	54.1	152.9	11.9	-69.8
Net Non-Operating Profit		120.4		-69.2		26.7		11.0	-3.3	0.0	-0.5	1.5	0.0	154.2
Profit for the Period		2,925.6		1,904.1		338.5		186.6	254.9	11.1	39.4	116.4	9.2	65.4
Profit attributable to
2,877.9		1,882.4		338.5		186.6	255.2	11.1	39.4	114.8	9.2	40.7
controlling interests

bn won			Group								3Q19(Cumulative)
		KB Kookmin		KB Securities		KB Insurance	KB Kookmin	Prudential Life		KB Asset		KB Capital	KB Life	Others 1)
					Bank						Card		Insurance		Management				Insurance
Net Interest Income			6,868.6		4,747.4		400.7		464.8	915.1	-	0.7	232.6	121.5	-14.2
Net Fee & Commission Income		1,716.5	846.7	426.3	-114.4	173.2	-	85.1	247.0	-12.8	65.4
Other Operating Profit			49.1	-96.2	5.9	588.1	-154.0	-	5.7	-185.3	-37.9	-77.2
Gross Operating Income			8,634.2		5,497.9		832.9		938.5	934.3	-	91.5	294.3	70.8	-26.0
G&A Expenses			4,456.7		2,721.0		556.4		644.2	306.0	-	42.2	78.9	49.0	59.0
Provision for Credit Losses			459.9	55.5	10.0	-15.1	324.8	-	0.0	82.2	-2.4	4.9
Net Operating Profit			3,717.6		2,721.4		266.5		309.4	303.5	-	49.3	133.2	24.2	-89.9
Net Non-Operating Profit			67.3		3.1		43.5		14.1	-4.3	-	-0.4	1.5	0.1	9.7
Profit for the Period			2,778.1		2,006.7		224.7		234.2	251.0	-	35.9	102.3	18.2	-94.9
Profit attributable to		2,777.1		2,006.7		224.7		233.9	251.0	-	35.9	100.7	18.2	-94.0
controlling interests

Note 1) Includes financial results of the holding company, the other subsidiaries and adjustment for consolidation

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