KB Financial : FY 2020 Earnings Release

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I. 2020 Financial Highlights_ Overview

Group Profitability Overview

bn won, %	2020	2019		YoY	4Q20	3Q20		QoQ
Net Interest Income	9,722.3	9,196.8	5.7		2,578.9	2,460.2	4.8
Net Fee & Commission Income	2,958.9	2,355.0	25.6	788.4	789.2	-0.1
Other Operating Profit	-188.6	-119.9		N.A.	-121.3	-17.7		N.A.
Gross Operating Income	12,492.6	11,431.9	9.3		3,246.0	3,231.7	0.4
G&A Expenses	6,833.2	6,271.0	9.0		2,187.0	1,600.6	36.6
Provision for Credit Losses	1,043.4	670.3	55.7	289.1	214.6	34.7
Net Operating Profit	4,616.0	4,490.6	2.8		769.9	1,416.5	-45.6

Highlights

Net Profit for 2020

3,455.2bn

(+4.3% YoY)

Increased 4.3% YoY on the back of solid growth in core earnings and inorganic growth despite the economic headwinds caused by COVID19

Net Interest Income for 2020

9,722.3bn

(+5.7% YoY)

Continued modest growth on the back of bank loan growth as well as consolidation of Prudential Life Insurance and Prasac, overcoming NIM contraction

Net Non-Operating Profit	145.6	43.3	236.3	25.2	154.4	-83.7
Profit for the Period	3,502.3	3,313.2	5.7		576.7	1,194.2	-51.7
	Profit attributable to	3,455.2	3,311.8	4.3		577.3	1,166.6	-50.5
	controlling interests

Group Net Profit Analysis (bn won)

Net Fee & Commission for 2020

2,958.9bn

(+603.9bn YoY)

Significant increase of 25.6% YoY mainly attributable to improvements in non-banking business such as 77.9% growth in fee income of securities business

G&A Expenses for 2020

6,833.2bn

(+2.6% YoY excl. non-recurring items)

Visible improvements in cost efficiency led by group-wide cost management effort, secured with only 2.6% YoY

1

102

388

Profit from

Non-

562

insurance

operating

business

Profit

Profit from

G&A

373

39

604

financial

expenses

investments,

Provision

Tax

etc.

for credit

expense

504

526

Fee &

losses

3,455

3,312

commission

Others

income

+4.3%

Interest

income

Credit Cost for 2020

0.26%

(0.20% on recurring basis)

Set aside W377bn of preemptive provision buffer against COVID19-related uncertainties

• Non-recurringitems for 4Q20 (before tax)

Balanced Dynamic Growth

(Net profit on a recurring basis)

Banking Non-

Banking

65.7% 34.3%

2019

2020

Note) Each earnings component is stated as in 'before tax' amount

• ERP costs : W344bn (Bank 302, Securities 20, Card 9, Prudential Life 10, etc.)
• Preemptive provisioning related to COVID19 uncertainties : W171bn (Bank 131, Card 27, Capital 11, etc.)
• (Kookmin Bank) Large scale of reversals of provision from loan sales and written-off assets : W62bn
• (KB Securities) Provisioning related to trade finance fund sold by KB Securities : W32bn

02

I. 2020 Financial Highlights_ Key Financial Indicators (1)
	Group ROA∙ROE (%)		Loans in won Growth (tn won, %)			NIM (%)
						4.2	2.4
		11.73					1.7	1.2
										1.83				1.94
	10.28		10.15		10.17						295				1.76
			280	287	292	295	269		1.74	1.73	1.75
7.70				8.98
				128	133	134	133
			5.61		8.79	5.5		0.8
						4.2	-0.5
									1.56				1.67
		0.81										1.50	1.49	1.51	1.51
	0.72		0.66			154	158	162
0.56			0.61	152
		0.38
						1.0
						3.2
							2.4	2.6
1Q20	2Q20	3Q20	4Q20	2019	2020	'20.3	'20.6	'20.9	'20.12	2019	2020	1Q20	2Q20	3Q20	4Q20	2019	2020

ROA

ROE

ROE(on recurring basis)

Household

Corporate

Total Growth(QoQ)

Group

Bank

Household Growth(QoQ)

Corporate Growth(QoQ)

Solid fundamental & profitability

Secured solid interest income

Well-managed 4Q20 NIM despite

despite unfavorable environment

stream led by quality growth

declining market rate trend

·ROA and ROE for 2020 recorded 0.61% and 8.79%, respectively

·Disregarding non-recurring items including ERP costs and preemptive provisioning, ROE for 2020 recorded 10.17% maintaining a solid earnings fundamental and profitability

• ROE : Based on ROCE(Return on Common Equity), which represents profitability of equity of common shares, eliminating the effects of supplementary capital

·Loans in won of the bank for 2020 accounted up to W295tn, achieving 9.9% YoY growth attributable to focusing on 'quality growth', and balanced growth of household and corporate

·Household loans increased 9.5% YTD and 2.6% QoQ driven by Jeonse and prime unsecured loans

·Corporate loans increased 10.3% YTD mostly led by SOHO, yet decreased 0.5% QoQ mainly due to debt redemption of large corporates at year-end

·4Q20 Bank NIM recorded 1.51%, recovering 2bp QoQ led by improvements in funding conditions and proper loan pricing efforts

·2020 Bank NIM fell 16bp YoY to 1.51%, mainly affected by the decline of market rates

·2020 Group NIM fell 18bp YoY further reflecting lowered card asset yields as high yield assets such as cash advances decreased

03

I. 2020 Financial Highlights _ Key Financial Indicators (2)

Group Cost-Income Ratio(CIR) (%) Credit Cost Ratio(CCR) (%)

Group BIS Ratio (Basel III, %)

70.2
	55.2	54.5	54.9	54.7
57.4
	51.8	50.5	50.9
		49.4
2016	2017	2018	2019	2020
	CIR	CIR(excl. non-recurring items)

0.22		0.21		0.26
0.20	0.20
				0.20
				0.13
0.11				0.09
	0.05
	0.04	0.04
2016	2017	2018	2019	2020
Group	Bank		excl. COVID19-related additional
			provision

15.27	15.23			15.27
		14.60	14.48
	14.60
14.37
		13.97	13.86	14.06
14.25	14.60
	13.97	13.58
			13.29
2016	2017	2018	2019	2020(e)
	BIS	Tier1	CET1

Enhanced cost efficiency based on better		Preemptive risk management with
revenue generation & cost control		conservative provisioning policy

Highest level of capital adequacy in the sector

·2020 CIR is well-managed despite scaled-up ERP and M&A-relatedone-off costs, which is attributable to better revenue generation & cost control effort

·2020 Group CIR on a recurring basis marked 49.4% demonstrating a continuous downward trend

·Pursue further enhancement in cost efficiency by expanding revenue sources and revisiting group- wide costs on a zero basis

·2020 Group CCR slightly increased to 0.26% mainly owing to preemptive provisioning against COVID19-related uncertainties

·As the result of conservative risk management, Group and the Bank CCRs recorded 0.20% and 0.09%, respectively, excluding such preemptive provisioning

·Proactively reinforced risk management system taking COVID19-related financial support programs and industry impact into consideration

·2020 Group BIS and CET1 ratios are expected to mark 15.27%, 13.29%, respectively

·Despite increased RWA due to growth in loan, Group maintained the most robust level of capital adequacy in the industry on the strength of firm increase in net profit and strategic management of capital including issuance of supplementary capital

·Bank BIS and CET1 ratios are expected to mark

17.77%, 15.10%, respectively

04

II. Key Takeaways _ KB ESG Leadership

KB ESG Strategic Directions

KB Green Way 2030

Create sustainable value and enhance customer trust by promoting responsible management for environment and society and disseminating healthy corporate governance

E	S	G
Environment	Social Responsibility	Corporate Governance
Advancing Climate	Internalizing Responsible	Spreading the Culture of
Change Strategy	Management for Society	Transparent Governance

KB ESG Leadership Milestones

25%

Reduce carbon emissions 1), 2)

50tn

Green Facilities and Renewable Energy

• Eco-friendlyoffice headquarters, IT facilities
• Install photovoltaic and fuel cell power generation facilities

Promote Go Green Campaign, 『Green Wave』

• Make social impact with customer, society, employee

Less Paper	Save Energy	No Plastic
• Issue less bankbook	• Use renewable energy	• Issue less plastic card
• Reduce DM service	• Increase green vehicle	• Reduce use of plastic
• Reduce paper usage	• Pursue energy	product
• Recycle plastic product
	efficiency

Increase Investments and Loans in Green Sectors Such as Renewable Energy and Green Industry

• Scale up investments in support of national policy and social change
• Lead the green industry through financing, advisory, etc.

Included in the DJSI World index For 5 consecutive years('20.10) No.1 in Korea banking industry

Became the first financial group in Korea to declare an exiting

Received KCGS ESG rating of A+ with the highest ratings in every category, the first time ever in Korea financial industry('20.10)

Expand

ESG products, Investments and loans 3)

Expand ESG-based Finance Including ESG bond Issuance and Arrangement

• Expand the issuance of green·social·sustainable bond
• Lead ESG-related bond market
• • KB Securities arranged 49% of local ESG bond issuance('18~'19)

coal financing('20.9)

As such, KB is no longer involved in new financing related to construction of coal-fired power plants

Established the Group ESG

Strategy 'KB Green Way 2030'

('20.5)

Became the PRB1) signatory and Joined CCCA2)('19.9) Joined UNEP FI('18.8)

Note

1. Principles for Responsible Banking 2) Collective Commitment to Climate Action

1. Task Force on Climate-related Financial Disclosures 4) Carbon Disclosure Project

Publicly committed to

Join Equator Principles

('20.8)

Established the ESG Committee in

the Board of Directors('20.3) Highest decision-makingbody in all ESG matters, responsible for establishing ESG strategy & policies

Became the TCFD3) supporter('18.10)

Joined the CDP4)

('18.8)

Note 1) Compared with 2017 2) Modification scheduled with 1.5°C scenario 3) Total amount of KRW 50tn

ESG Core Tasks

Join		Comply with		Support
적도원칙 가입		TCFD Guidelines		K-New Deal Project
Equator Principles
Stop investments in		Implement TCFD		Promote K-New Deal by
large-scale projects with		recommendation through		focusing on ESG such as
environmental destruction		managing climate-		green smart school and
or violation of human rights		related financial risks and		green energy, etc.
(by 2021)		transparent disclosure		(Support KRW 10tn by 2025)
			05

III. Financial Analysis _ Net Interest Income

Group Net Interest Income

bn won, %	2020	2019	YoY		4Q20	3Q20	QoQ
Interest Income	14,485.7	14,639.2	-1.0	3,685.2	3,578.8	3.0
	Loans	12,196.6	12,295.2	-0.8	3,086.4	3,031.6	1.8
	Financial	1,994.5	2,042.8	-2.4	522.8	480.9	8.7
	Investments
	Others	294.6	301.2	-2.2	76.0	66.3	14.6
Interest Expense	4,763.4	5,442.4	-12.5	1,106.3	1,118.6	-1.1
	Deposits	2,916.8	3,481.1	-16.2	664.4	677.3	-1.9
	Debts &	1,759.3	1,837.0	-4.2	421.8	423.4	-0.4
	Debentures
	Others	87.3	124.3	-29.8	20.1	17.9	12.3
Net Interest Income	9,722.3	9,196.8	5.7	2,578.9	2,460.2	4.8

Net Interest Income (bn won)

			9,197	9,722
		8,905		574			2,579
	8,247		457	2,460
		478
		1,266
	534		1,230			204
		1,168	616		137
6,403	1,084			616
	616	511			327
	465		542	530			315
520
599						158	152
981
						134
73							133
	5,565		6,101	6,364	6,755		1,717	1,762
4,829
2016	2017	2018	2019	2020		3Q20		4Q20
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, %)

					287	292	295
				280
			269
258	260	261
						8.6	9.9
					6.8
			4.5
	0.9	1.4		4.2
			3.0	2.4
				1.7
					1.2
0.3	0.7	0.5
'19.3	'19.6	'19.9	'19.12	'20.3	'20.6	'20.9	'20.12

Bank Loans in Won

Growth(QoQ)

Growth(YTD)

NIM (%)

1.98 1.97

1.94

1.94

1.88 1.83

1.71	1.70	1.74	1.73	1.75
		1.76
		1.67

1.67

1.61 1.56

					1.50	1.49	1.51
					1.51
1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20	4Q20
		Group		Bank		Cumulative

06

III. Financial Analysis _ Net Non-Interest Income

Group Net Non-Interest Income

bn won, %	2020	2019	YoY	4Q20	3Q20		QoQ
Net Fee & Commission Income	2,958.9	2,355.0	25.6	788.4	789.2	-0.1
	Credit Card Fees	529.6	424.2	24.8	155.2	128.0	21.3
	Trusts	486.4	542.1	-10.3	127.6	122.9	3.8
	Agent Activity Fees	196.5	172.2	14.1	48.6	51.0	-4.7
	(Incl. Bancassurance)
	Represent Securities	172.1	145.8	18.0	45.6	44.7	2.0
	(Incl. ITC Products)
	Banking Activity Fees	189.1	214.5	-11.8	46.5	46.5	0.0
	Securities Business	793.3	446.0	77.9	204.9	250.5	-18.2
	Others	591.9	410.2	44.3	160.0	145.6	9.9
Other Operating Income	-188.6	-119.9	N.A.	-121.3	-17.7		N.A.
Net Non-Interest Income	2,770.3	2,235.1	23.9	667.1	771.5	-13.5

Fee Income Contribution

			35.6%
48.0%	2019	52.0%	2020

64.4%

Bank		Non-Bank

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

Net Fee & Commission Income (bn won)

				2,959
		2,243	2,355		573
					789		788
	2,050		229	380	401
1,585		240	265	262			144	169
	133
	212	552	626	580	917		94	127
	92
	193						281
							237
	1,088	1,125	1,123	1,133	1,068		270
						255
2016	2017	2018	2019	2020		3Q20		4Q20

		Bank		Securities		Card			Others(incl. adjustment for consolidation)
Note) Based on each subsidiary's Net Fee & Commission	Income on the financial statements for group reporting

Composition of Fee Income (Cumulative, bn won)

89

215

405

154

595

180

Bank

Non-Bank

278

234

196

275

376

Bancassurance

Mutual Fund

Trusts

Brokerage

Credit Card

Trusts

Sales, etc.

IB

Others

Banking

Credit Card

Others

Activities

Services

(incl. FX, etc.)

Note) Based on simple arithmetic sum of each subsidiary's Net Fee & Commission Income on the financial
statements for group reporting	07

III. Financial Analysis _ G&A Expenses & Provision for Credit Losses

Group G&A Expenses

bn won, %	2020	2019		YoY		4Q20		3Q20		QoQ
Employee Benefits	4,343.2	3,955.3	9.8	1,465.7	1,007.8	45.4
Depreciation & Amortization	874.9	784.4	11.5	240.7	217.9	10.5
Administrative Expenses	1,381.0	1,316.7	4.9	422.3	320.9	31.6
Others	234.1	214.6	9.1	58.3	54.0	8.0
G&A Expenses	6,833.2	6,271.0	9.0	2,187.0	1,600.6	36.6

Note) FY2020 includes Group ERP W344bn, M&A-related costs W243bn

Group Provision for Credit Losses

bn won, %	2020	2019	YoY	4Q20		3Q20	QoQ
Provision for Loan Losses	967.2	669.5	44.5	254.4	214.9	18.4
Provision for Guarantees	-13.6	1.9	N.A.	12.5	-18.5	N.A.
Provision for Unused Commitments	89.5	-3.0	N.A.	21.9	16.7	31.1
Provision for Financial Guarantee Liabilities	0.3	1.9	-84.2	0.3	1.5	-80.0
Provision for Credit Losses	1,043.4	670.3	55.7	289.1	214.6	34.7

Note) FY2020 includes COVID19-related additional provision W377bn(FLC 238, Overlay 139)

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

70.2
												0.26
57.4	55.2	54.5		54.9	54.7			0.22	0.20	0.21	0.20
	51.8	50.5		50.9	49.4		6,833					1,043		1,043
				6,271	6,833	6,271
	5,629	5,919		243		243
5,229		434	462	632		462	632						377
	345
							674	670		670
	1,041
							539	548
		5,284	5,485	5,809	5,958		5,809	5,958
										666
	4,188
2016	2017	2018		2019	2020	2019	2020	2016	2017	2018	2019	2020	2019	2020

G&A

Non-recurring

M&A-related

CIR

CIR

Provision for Credit Losses

COVID19-related additional provision

CCR

Expenses

items

items

(excl. non-recurring items)

Note) Non-recurring items : ERP, Digitalization costs, etc.

Note) M&A-related items : Financial consolidation effect in relation to the acquisition of Prasac,

Prudential Life Insurance, Bank Bukopin, etc.

08

III. Financial Analysis _ Financial Position Overview
Group Financial Position	Group Assets (tn won)

tn won, %	2020.12		2020.9		QoQ 2019.12		YTD
Assets	610.7		605.5	0.9	518.5	17.8
	Cash & Due from Financial Institutions	25.6		25.4	0.8	20.8	23.1
	FVTPL1) Assets	61.1		58.8	3.9	53.5	14.2
	Financial Investments	98.7		96.7	2.1	71.8	37.5
	Loans	377.2		378.1	-0.2	339.7	11.0
	Property & Equipment	8.2		8.6	-4.7	7.9	3.8
	Other Assets	39.9		37.9	5.3	24.8	60.9
Liabilities	567.4		563.4	0.7	479.4	18.4
	FVTPL1) Liabilities	11.9		13.3	-10.5	15.4	-22.7
	Deposits	338.6		338.0	0.2	305.6	10.8
	Debts	49.8		47.8	4.2	37.8	31.7
	Debentures	62.8		60.3	4.1	50.9	23.4
	Other Liabilities	104.3		104.0	0.3	69.7	49.6
Shareholder's Equity	43.3		42.1	2.9	39.1	10.7
	Share Capital	2.1		2.1	-	2.1	-
	Hybrid Securities	1.7		1.2	41.7	0.4	325.0
	Capital Surplus	16.7		16.7	0.0	17.1	-2.3
	Accumulated Other Comprehensive	0.6		0.4	50.0	0.3	100.0
	Income
	Retained Earnings	22.5		21.9	2.7	19.7	14.2
	Treasury Shares	-1.1		-1.1		N.A.	-1.1		N.A.
	Non-Controlling Interests	0.8		0.9	-11.1	0.6	33.3
Group Total Assets 1)	940.4		908.4	3.5	789.8	19.1
	AUM 2)		329.2		302.7		8.8	271.1	21.4

Note 1) Based on simple arithmetic sum of each subsidiary's total assets on the financial statement for group reporting and AUM

Note 2) Includes Bank's trust asset not subject to group reporting

						610.7
					518.5	26.4
				479.6	25.1
		436.8		23.7	24.1
				39.1
375.7	19.5		22.2	23.0
	20.5	36.6	57.6
	20.4	17.7		34.8	47.8
	32.4		45.1
	15.8	37.4
	32.4
	307.1	329.8		357.0	387.4	438.4
	2016	2017		2018	2019	2020
Bank	Securities	Insurance	Card	Prudential	Others(incl. adjustments for consolidation)

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

Group AUM (tn won)

				329.2
		252.7	271.1	29.6
	234.9	28.4
216.6	30.8	83.0
25.8
22.4		59.2
	51.0
50.6
52.7
		123.3	131.8	162.4

97.8	115.2

43.7	43.3	47.6	51.7	54.2
2016	2017	2018	2019	2020

Bank Trust		Securities		Asset Management		Real Estate Trust & others

09

III. Financial Analysis _ Assets & Liabilities

Bank Loans in Won

tn won, %	2020.12	2020.9	QoQ	2019.12	YTD
Household	161.9	157.8	2.6	147.9	9.5
	Mortgage	86.0	83.3	3.2	77.2	11.4
	General	75.9	74.5	1.9	70.7	7.4
	[Home Equity]	30.5	30.7	-0.7	31.8	-4.1
Corporate	133.6	134.3	-0.5	121.1	10.3
	SME	114.1	113.1	0.9	103.3	10.5
	[SOHO]	76.8	75.1	2.3	69.2	11.0
	Large Corp, etc.	19.5	21.2	-8.0	17.8	9.6
Total	295.5	292.1	1.2	269.0	9.9

Bank Deposits & Debentures in Won

tn won, %	2020.12	2020.9	QoQ	2019.12	YTD
Deposits	302.5	302.9	-0.1	281.6	7.4
	Core Deposits	155.9	146.6	6.3	124.5	25.2
	Time & Savings	144.2	153.0	-5.8	152.9	-5.7
	[Time Deposits]	131.2	140.2	-6.4	139.3	-5.8
	CD, RP, etc.	2.4	3.3	-27.3	4.2	-42.9
Debentures	19.2	16.9	13.6	13.0	47.7
Total	321.7	319.8	0.6	294.6	9.2

Loan Portfolio (tn won, %)

				295.5
		257.4	269.0	6.6
	234.9	6.6
220.6	7.0	12.6
6.8	12.7
	12.6
7.6
12.4			26.0
12.1		25.7
	25.5
	25.6
24.4
		27.7	26.3	25.7
29.4	28.8
26.5	26.4	27.2	28.7	29.1
2016	2017	2018	2019	2020
Mortgage	General	SOHO	SME(excl. SOHO)	Large Corp, etc.

Card Assets

tn won, %	2020.12	2020.9		QoQ	2019.12	YTD
Credit Card	18.7	18.4	1.6	18.6	0.5
	Credit Sales	12.0	11.9	0.8	12.0	0.0
	[Installments]	5.4	5.2	3.8	5.1	5.9
	Card Loans	5.6	5.4	3.7	5.3	5.7
	Cash Advance	1.1	1.1	0.0	1.2	-8.3
Installment Financing, etc.	4.2	4.0	5.0	3.3	27.3
Total	22.9	22.4	2.2	21.9	4.6

10

IV. Asset Quality _ Group Overview

Group Asset Quality

bn won, %	2020.12	2020.9	QoQ	2019.12	YTD
Total Loans for NPL Classification	366,427.8	362,674.6	1.0	334,552.5	9.5
	Precautionary	2,379.2	2,439.7	-2.5	2,608.4	-8.8
	Substandard	653.5	770.1	-15.1	662.5	-1.4
	Doubtful	557.1	576.8	-3.4	700.9	-20.5
	Estimated Loss	280.4	308.6	-9.1	288.4	-2.8
Substandard & Below Loans(NPL) (A)	1,491.0	1,655.5	-9.9	1,651.8	-9.7
NPL Ratio	0.41%	0.46%	-0.05%p	0.49%	-0.08%p
Loan Loss Reserves (B)	2,513.6	2,455.9	2.3	2,430.0	3.4
NPL Coverage Ratio I (B/A)	168.6%	148.3%	20.3%p	147.1%	21.5%p
Reserves for Credit Losses (C)	2,643.1	2,702.9	-2.2	2,555.2	3.4
NPL Coverage Ratio II [(B+C)/A]	345.9%	311.6%	34.3%p	301.8%	44.1%p

Note) Based on simple arithmetic sum of each subsidiary's figures(excl. overseas local subsidiaries, overseas equity investments, SPCs for consolidation, etc.). For reference, consolidated Group NPL ratio as of end of 2020 is 0.79%

Precautionary & Below Ratio / NPL Ratio (%)

2.13

1.60	1.42	1.27	1.26
	1.17	1.13
		1.06

0.86	0.69	0.61	0.49	0.50
	0.48	0.46	0.41
2016	2017	2018	2019	'20.3	'20.6	'20.9	'20.12
		Precautionary & Below Ratio		NPL Ratio

Credit Cost Ratio (%)

2.10	2.33	2.14
	2.03

1.75

0.22 0.20 0.21 0.20 0.25

0.11		0.11
0.05	0.04	0.04

1.96

1.59

1.05

0.290.29

0.22

0.12

0.14

0.14

NPL Coverage Ratio
	Ⅰ (%)
				320.0
278.1				288.0
263.4
	249.6	249.8
223.9				168.6
204.3
138.9	147.1	141.4	144.4	148.3

104.3	107.9
					165.2
	122.3	130.2	126.7	134.5	140.4
95.6	99.7

2016	2017	2018	2019	1Q20	2Q20	3Q20	4Q20
	Group		Bank		Card

2016	2017	2018	2019	'20.3	'20.6	'20.9	'20.12
		Group		Bank		Card

11

IV. Asset Quality _ Bank & Card

Bank Asset Quality

bn won, %	2020.12	2020.9	QoQ	2019.12	YTD
Total Loans for NPL Classification	315,280.9	312,718.4	0.8	288,896.7	9.1
	Precautionary	1,019.5	1,038.0	-1.8	1,249.2	-18.4

Delinquency Ratio (%)

1.24	1.23	1.20	1.11

0.35

1.24 1.08 0.99 0.94

Substandard	498.2	603.9	-17.5	590.4	-15.6
Doubtful	270.1	257.9	4.7	350.2	-22.9
Estimated Loss	103.7	131.3	-21.0	116.6	-11.1

0.24 0.23 0.24

0.24

0.21 0.20 0.17

NPL Ratio	0.28%	0.32%	-0.04%p	0.37%	-0.09%p
NPL Coverage Ratio	165.2%	140.4%	24.8%p	130.2%	35.0%p

Note) Based on separate financial statements

Card Asset Quality

bn won, %	2020.12	2020.9	QoQ	2019.12	YTD
Total Loans for NPL Classification	22,861.3	22,394.7	2.1	21,922.4	4.3
	Precautionary	846.8	824.9	2.7	875.1	-3.2
	Substandard	3.7	4.4	-15.9	3.6	2.8
	Doubtful	162.1	182.5	-11.2	223.0	-27.3
	Estimated Loss	70.3	75.6	-7.0	73.0	-3.7
NPL Ratio	1.03%	1.17%	-0.14%p	1.37%	-0.34%p

2016

2017

2018

2019

Bank

NPL Ratio (%)

1.30	1.40	1.38	1.37
0.74	0.58	0.48
	0.37
2016	2017	2018	2019
			Bank

'20.3 '20.6 '20.9 '20.12

Card

1.51 1.48

		1.17	1.03
0.36	0.33	0.32	0.28
'20.3	'20.6	'20.9	'20.12
	Card

NPL Coverage Ratio	320.0%		288.0%		32.0%p	263.4%		56.6%p
Note) Based on separate financial statements
			Provision for Loan Losses
bn won, %	2020	2019	YoY	4Q20	3Q20	QoQ
Bank	390.1	113.2	244.6	110.5	107.5	2.8
			Household	257.4	243.1	5.9	55.4	44.6	24.2
			Corporate	132.7	-129.9	N.A.	55.1	62.9	-12.4
Card	362.2	432.6	-16.3	90.3	58.2	55.2

Note) FY2020 includes COVID19-related additional provision(Group W377bn)

Bank Credit Cost Ratio (%)		0.24
0.22
			0.17	0.18		0.16
		0.13
0.11	0.10		0.11	0.12		0.14
		0.14
	0.05	0.04	0.04			0.11
0.01	0.01			0.03	0.01
		-0.06	-0.10
2016	2017	2018	2019	1Q20	2Q20	3Q20	4Q20
		Total	Household	Corporate

12

V. Financial Highlights of Major Subsidiaries _ KB Kookmin Bank

Profitability Overview 1)

bn won, %	2020			2019		YoY		4Q20		3Q20		QoQ
Net Interest Income	6,754.8			6,363.8	6.1	1,761.9	1,717.2	2.6
Net Fee & Commission Income	1,067.9			1,133.3	-5.8	254.7	270.2	-5.7
Other Operating Profit	14.0			-178.0		N.A.	23.9	-18.8		N.A.
Gross Operating Income	7,836.7			7,319.1	7.1	2,040.5	1,968.6	3.7
G&A Expenses	4,201.3			3,887.4	8.1	1,386.1	939.9	47.5
Provision for Credit Losses	484.3			103.6	367.5	150.9	117.4	28.5
Net Operating Profit	3,151.1			3,328.1	-5.3	503.5	911.3	-44.7
Net Non-Operating Profit	-19.3			-9.6		N.A.	49.9	-43.4		N.A.
Profit for the Period 2)	2,298.2			2,439.1	-5.8	415.8	635.6	-34.6
Note 1) Based on financial statements for group reporting	2) Profit attributable to controlling interests

Net Profit (bn won)

Net Interest Income & NIM (bn won, %)

1.58	1.71	1.71	1.67	1.51		1.51
			1.49
	5,394	6,101	6,364	6,755
4,829
				1,762
				1,717
2016	2017	2018	2019	2020	3Q20	4Q20
		Net Interest Income		NIM

Net Fee & Commission Income (bn won)

1,088	1,225	1,123	1,133		270
	1,068	255
266
	228	208	215	49
253	57	44
47	66
79	176	89	25	20
147	129
157	225	204	200	154	40	40
235	180	48	40
195	210	222
182	196	48	48
306	287	308
182	234	60	63

		2,259	2,439	2,298
	2,175
964
2016	2017	2018	2019	2020

2,582 2,686

2,439 2,298

2019 2020

2016

2017

2018

2019

2020

3Q20

4Q20

Trusts

Banking Activities

Card Services

Mutual Fund Sales

Bancassurance

FX, etc.

CIR (bn won, %)		CCR (bn won, %)
48.4		0.13
47.2
	484
3,887	4,201	0.04
		104

Major non-recurring items

Note) Major non-recurring items (after tax)

Note) 2019: ERP(W160bn), large-scale reversals of provisioning(W77bn), etc.

Note) 2020: ERP(W219bn), preemptive provisioning related to COVID19 uncertainties(W210bn), large-scale reversals of provisioning(W100bn), etc.

2019	2020	2019	2020
G&A		CIR		Provision for		CCR
Expenses		(excl. non-recurring items)		Credit Losses	13

V. Financial Highlights of Major Subsidiaries _ KB Securities

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

bn won, %	2020			2019		YoY		4Q20		3Q20		QoQ
Net Fee & Commission Income	916.8			580.4	58.0	236.7	280.9	-15.7
Brokerage	595.3			245.1	142.9	167.5	183.0	-8.5
Investment Banking	278.3			267.3	4.1	63.7	84.7	-24.8
Financial Products	57.8			63.7	-9.3	15.7	14.8	6.1
Others	-14.7			4.3		N.A.	-10.2	-1.7		N.A.
Interest Income	510.6			529.9	-3.6	133.5	132.7	0.6
Trading	14.6			-15.9		N.A.	21.1	26.5	-20.4
G&A Expenses	844.5			757.3	11.5	256.4	205.4	24.8
Provision for Credit Losses	23.8			14.3	66.4	0.3	-0.3		N.A.
Net Operating Profit	573.7			322.8	77.7	134.6	235.0	-42.7
Net Non-Operating Profit	8.1			30.4	-73.4	-18.6	47.4		N.A.
Profit for the Period 2)	425.6			257.9	65.0	87.1	209.7	-58.5
Note 1) Based on financial statements for group reporting	2) Profit attributable to controlling interests

Net Profit (bn won)

					485
			426
272		258		258
	179				426
2017	2018	2019	2020	2019	2020

Major non-recurring items

Note) Major non-recurring items (after tax)

2020: Disposal gain on overseas real estate investment(W30bn), PEF related losses including TRS valuation losses(W29bn), provisioning related to trade finance fund sold by KB Securities(W23bn), provisioning related to PEF sold by KB Securities(W21bn), provisioning for receivables from brokerage business(W14bn), ERP(W14bn), etc.

			917
			44
552	625	580	278	281	237
56		13
48	68		5
216
215			85
267		64
	595
288	353	245		183	168
2017	2018	2019	2020	3Q20	4Q20
	Brokerage	IB	Sales of Financial Products, etc.

Retail AUM (tn won)

						109
				83	94
		74	69		33
61	64		31
		30
		29	28
15	20
				53	63	76
46	44	45	41
2017	2018	2019	'20.3	'20.6	'20.9	'20.12
			Brokerage	WM

Assets under WM

tn won	2020	2019	2018						2.7%2.7%
									16.6%
Bonds	19.3	14.1	10.3
Trusts	7.4	6.1	4.2
Funds	5.5	6.7	4.1
ELS/DLS	0.9	1.5	1.8			22.4%					58.3%
Total	33.1	28.4	20.4
										Bonds		Trusts		Funds		ELS/DLS

14

V. Financial Highlights of Major Subsidiaries _ KB Insurance

Profitability Overview 1)

bn won, %	2020	2019		YoY	4Q20	3Q20		QoQ
Direct Premium Written	10,975.1	10,272.8	6.8	2,779.3	2,728.8	1.9
Net Premium Earned	9,577.0	9,191.2	4.2	2,467.4	2,405.4	2.6
Loss Ratio	85.5%	86.1%		-0.6%p	86.0%		85.2%		0.8%p
Expense Ratio	21.2%	22.0%		-0.8%p	22.4%		21.1%		1.3%p
Underwriting Profit	-650.1	-740.1		N.A.	-207.9		-152.0		N.A.
Investment Income	844.3	959.2		-12.0	196.8		198.2	-0.7
Profit for the Period 2)	163.9	234.3		-30.0	-22.7		42.6		N.A.
RBC Ratio	177.6%	188.5%		-10.9%p	177.6%	188.6%		-11.0%p

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

Net Profit & EV 1) (bn won)

	7,806
330	6,607

Direct Premium Written

bn won	2020	2019	2018
Long Term	7,290.7	7,083.3	6,883.2
	Protection	6,703.8	6,362.8	6,014.0
	Savings	586.9	720.5	869.2
Auto	2,610.6	2,206.7	2,035.3
General	1,073.8	982.8	931.7
Total	10,975.1	10,272.8	9,850.2
		Asset Portfolio
bn won	2020	2019	2018
Cash & Due	554.2	559.2	746.1
Securities	22,435.4	20,633.0	18,741.2
	Bonds	12,678.7	10,715.7	9,871.9
	F/C Securities	3,187.9	4,243.2	4,365.1
	Equities, etc.	6,568.8	5,674.1	4,504.1
Loans	7,080.9	6,872.1	6,873.7
Real Estate	917.8	943.1	968.0
Total	30,988.3	29,007.4	27,329.0

9.8%

23.8%

61.1%

5.3%

LT (Protection) LT (Savings) Auto General

3.0% 1.8%

22.8%

			40.9%
21.2%
		10.3%
Bonds		F/C Securities		Equities, etc.
Loans		Real Estate		Cash & Due

	262	4,712	234	164
3,152
2017	2018	2019	2020
		Net Profit	EV

Loss Ratio (%)
	88.3	92.0	88.0
	86.1
83.4	84.2	86.6
82.2	84.0	85.1	84.7
80.7
		75.7	74.9

71.3 71.0

2017 2018 2019 1Q20

97.4

88.1 87.5

84.4	85.2	87.1
84.2	86.0
84.685.2
82.0	85.5

2Q20 3Q20 4Q20

Note 1) EVs are based on identical assumptions sets 2) EVs are figures as of the end of each year		Total		Long Term		Auto		General
							15

V. Financial Highlights of Major Subsidiaries _ KB Kookmin Card

Profitability Overview 1)

bn won, %	2020	2019		YoY		4Q20		3Q20		QoQ
Operating Revenue	4,014.7	3,919.6	2.4	1,035.6	992.5	4.3
Card	3,516.3	3,472.8	1.3	905.0	874.2	3.5
Installment and Lease Financing	116.9	75.9	54.0	36.8	30.8	19.5
Others	381.5	370.9	2.9	93.8	87.5	7.2
Operating Expense	2,659.9	2,658.5	0.1	675.8	677.5	-0.3
Interest Expense	365.8	350.9	4.2	93.7	92.6	1.2
Commissions & Other Expenses	2,294.1	2,307.6	-0.6	582.1	584.9	-0.5
Gross Operating Income	1,354.8	1,261.0	7.4	359.8	315.0	14.2
G&A Expenses	514.8	441.9	16.5	165.5	120.6	37.2

Card Transaction Volume (tn won)		37.3
		36.0	36.7			36.4
	35.0	34.1	35.7	8.9
33.0	9.0	8.9	8.4	8.7
8.6	8.2
8.3
	26.4	27.0	27.8	25.9	27.3	27.7	28.4
24.7
1Q19	2Q19	3Q19	4Q19	1Q20	2Q20	3Q20	4Q20
			Credit Card		Check Card

Card Assets

Provision for Credit Losses	396.5	439.7	-9.8	99.6	68.9	44.6
Net Operating Profit	443.5	379.4	16.9	94.7	125.5	-24.5
Net Non-Operating Profit	-5.5	4.5	N.A.	-2.2	-1.5	N.A.
Profit for the period 2)	324.7	316.5	2.6	69.5	91.4	-24.0
Note 1) Based on financial statements for group reporting	2) Profit attributable to controlling interests

Net Profit (bn won)

						361
317	297	287	317	325	317
						325
2016	2017	2018	2019	2020	2019	2020

Major non-recurring items

Note) Major non-recurring items (after tax)

2020: Preemptive provisioning related to COVID19 uncertainties(W43bn), reversals of provisioning in relation to change in FLC(W13bn), ERP(W7bn)

bn won	2020	2019	2018
Credit Card	18,706.4	18,591.9	17,309.3
	Credit Sales	12,029.8	12,038.2	11,110.0
	Installments	5,379.3	5,127.4	4,793.7
	Card Loans	5,622.6	5,345.4	4,942.2
	Cash Advance	1,054.0	1,208.2	1,257.1
Installment	4,151.0	3,312.6	2,154.5
Financing, etc.
Total	22,857.4	21,904.5	19,463.8
		Funding
bn won	2020	2019	2018
Borrowings	988.8	1,129.2	620.1
Debentures	14,366.8	13,353.2	12,083.6
ABS	1,507.5	1,460.3	970.0
Total	16,863.1	15,942.7	13,673.7

18.2%

52.6%

24.6%

4.6%

	Credit Sales		Cash Advance
	Card Loans		Installment Financing, etc.

5.9%

8.9%

85.2%

Debentures ABS Borrowings

16

V. Financial Highlights of Major Subsidiaries _ Prudential Life Insurance

Profitability Overview 1)

New Business APE(Annualized Premium Equivalent)

bn won, %		2020		2019		YoY		4Q20		3Q202)		QoQ
Net Interest Income	112.1	-	-	84.9	27.2	-

bn won	2020	2019	2018
Protection	113.8	129.7	115.7

0.1%

Net Fee & Commission Income	-2.9	-	-	-2.1	-0.8	-
Other Operating Profit	65.6	-	-	44.2	21.4	-
Gross Operating Income	174.8	-	-	127.0	47.8	-
G&A Expenses	81.8	-	-	49.9	31.9	-

Annuities	120.4	122.6	91.9
Savings	0.3	0.6	1.9
Total	234.5	252.9	209.6

48.5%

51.4%

Provision for Credit Losses				0.5			-			-	0.2	0.3	-
Net Operating Profit				92.5			-			-	76.9	15.6	-
Net Non-Operating Profit				-0.1			-			-	-0.1	0.0	-
Profit for the Period 3)				55.7			-			-		44.6		11.1		-
RBC Ratio				428.9%			-			-	428.9%	486.4%	-
Note 1) Based on financial statements for group reporting	2) Based on financial statements since September, 2020
3) Profit attributable to controlling interests
Net Profit 1) (bn won)										228
176	164
										100
							141

Invested Assets

bn won	2020	2019	2018
Cash & Due	367.5	241.4	67.6
Securities	16,334.2	15,091.5	13,814.2
Bonds	15,110.6	14,197.6	13,168.8
F/C Securities	869.6	585.7	268.5
Equities, etc.	354.0	308.2	376.9
Loans	760.9	995.2	956.6
Real Estate	91.1	93.2	95.2
Total	17,553.7	16,421.3	14,933.6

Protection Annuities Savings

4.3%

0.5%

2.1%

2.0%

5.0%

				86.1%
	Bonds		F/C Securities		Equities, etc.
	Loans		Real Estate		Cash & Due

128

20162017201920202)

Major non-recurring items

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

Note 2) Major non-recurring items (after tax)

Disposal gain on private placement bonds(W149bn), bonus payouts(W31bn), additional tax expenses due to corporate tax rate adjustment(W11bn), ERP(W7bn)

Mortality Margin & Loss Ratio (bn won, %)

54.4	53.6		58.3		55.4
52.3
		168		40.5		43.9
147	157
			38	54	41	52
2017	2018	2019	1Q20	2Q20	3Q20	4Q20
		Mortality Margin	Loss Ratio		17

VI. Appendix _ Overview of Group Subsidiaries1) (2020)

bn won		Ownership	Total Assets		Shareholder's Equity		Profit for the Period	ROA	ROE
KB Kookmin Bank	100.0%	438,444.1	30,408.1	2,298.2	0.55%	7.86%
KB Securities	100.0%	57,629.7	5,054.2	425.6	0.78%	8.81%
KB Insurance	100.0%	39,078.1	3,991.7	163.9	0.43%	4.10%
KB Kookmin Card	100.0%	24,071.6	4,281.7	324.7	1.38%	7.86%
Prudential Life Insurance	100.0%	25,121.7	2,439.5	55.7	1.04%2)	7.68%2)
KB Asset Management	100.0%	335.6	223.1	57.3	15.59%	29.20%
KB Capital	100.0%	12,820.9	1,431.6	141.6	1.20%	10.96%
KB Life Insurance	100.0%	10,424.9	582.1	-23.2	N.A.	N.A.
KB Real Estate Trust	100.0%	437.6	329.5	66.9	16.70%	21.93%
KB Savings Bank	100.0%	1,883.7	225.6	17.3	1.10%	7.92%
KB Investment	100.0%	848.7	230.1	15.4	1.92%	6.99%
KB Data Systems	100.0%	40.3	17.3	-1.7	N.A.	N.A.
KB Credit Information	100.0%	27.7	15.9	1.1	3.92%	7.25%

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

18

VI. Appendix _ Condensed Income Statement by Subsidiaries

														2020
	bn won		Group
				KB Kookmin	KB Securities	KB Insurance	KB Kookmin	Prudential Life	KB Asset	KB Capital	KB Life	Others1)
						Bank					Card	Insurance	Management			Insurance
Net Interest Income	9,722.3	6,754.8		510.6	616.0	1,265.7	112.1		2.4		330.0	148.8	-18.1
Net Fee & Commission Income	2,958.9	1,067.9		916.8	-171.2	400.5	-2.9		133.6		537.5	-15.2	91.9
Other Operating Profit	-188.6	14.0		14.6		588.4	-311.4	65.6		8.4		-426.2	-80.7	-61.2
Gross Operating Income	12,492.6	7,836.7		1,442.0	1,033.2	1,354.8	174.8		144.4		441.3	52.9	12.6
G&A Expenses	6,833.2	4,201.3		844.5	829.3	514.8	81.8		65.6		126.1	70.4	99.4
Provision for Credit Losses	1,043.4	484.3		23.8		-7.7	396.5	0.5		0.1		127.4	-0.9	19.5
Net Operating Profit	4,616.0	3,151.1		573.7	211.6	443.5	92.5		78.7		187.8	-16.6	-106.3
Net Non-Operating Profit	145.6	-19.3		8.1		16.1	-5.5	-0.1		-0.8		2.2	-16.2	161.1
Profit for the Period	3,502.3	2,319.5		425.6	163.9	324.0	55.7		57.3		143.7	-23.2	35.8
	Profit attributable to	3,455.2	2,298.2		425.6	163.9	324.7	55.7		57.3		141.6	-23.2	11.4
	controlling interests
														2019
	bn won		Group
				KB Kookmin	KB Securities	KB Insurance	KB Kookmin	Prudential Life	KB Asset	KB Capital	KB Life	Others1)
						Bank					Card	Insurance	Management			Insurance
Net Interest Income	9,196.8	6,363.8		529.9	616.4	1,230.3	-		0.9		313.8	159.2	-17.5
Net Fee & Commission Income	2,355.0	1,133.3		580.4	-152.6	261.8	-		117.2		334.5	-16.8	97.2
Other Operating Profit	-119.9	-178.0		-15.9	667.6	-231.1	-		9.5		-257.0	-57.7	-57.3
Gross Operating Income	11,431.9	7,319.1		1,094.4	1,131.4	1,261.0	-		127.6		391.3	84.7	22.4
G&A Expenses	6,271.0	3,887.4		757.3	843.8	441.9	-		60.9		118.9	66.5	94.3
Provision for Credit Losses	670.3	103.6		14.3	-13.0	439.7	-		0.0		116.6	-3.0	12.1
Net Operating Profit	4,490.6	3,328.1		322.8	300.6	379.4	-		66.7		155.8	21.2	-84.0
Net Non-Operating Profit	43.3	-9.6		30.4	26.5	4.5	-		-0.5		1.0	0.0	-9.0
Profit for the Period	3,313.2	2,439.1		257.9	234.7	316.6	-		48.9		119.4	16.0	-119.4
	Profit attributable to	3,311.8	2,439.1		257.9	234.3	316.5	-		48.9		117.0	16.0	-117.9
	controlling interests
Note 1) Includes financial results of the holding company, the other subsidiaries and adjustment for consolidation

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