A South Korean financial holding company whose flagship is KB Kookmin Bank, offering banking, securities, insurance, and credit cards across the country. The "KB" comes from Kookmin, a Korean word meaning "citizens" — fitting, since the bank was created by the government in 1963 to serve everyday people and small businesses. In 2008 the group was set up as a holding company, and it now ranks among South Korea's biggest financial players.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
KB Financial's 2025 net profit rose 16.1% to ￦5,841B as trading gains more than tripled, while credit loss provisions rose for the third time in four years.
Trading gains tripled, but credit costs rose again. increased 16.1% to ￦5,841 billion as net gains on financial instruments at fair value climbed to ￦3,380 billion from ￦1,012 billion, while the rose 15.6% to ￦2,363 billion on preemptive corporate loan reserving. The bank enters 2026 with rising retail and SME non-performing loans and a under pressure from falling loan yields.
Key takeaways
rose 16.1% to ￦5,841 billion, driven by a ￦2,368 billion increase in trading gains on financial instruments at fair value, which reached ￦3,380 billion.
The rose 15.6% to ￦2,363 billion, as preemptive provisioning for corporate loans more than offset a decline in credit card loss provisions.
grew 1.9% to ￦13,073 billion, as a 9.0% drop in from lower deposit costs outpaced a 4.4% decline in interest income from falling loan yields.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
The company manages market risk via a multi-tiered governance structure, with principal exposures to interest rate, foreign exchange, and equity price risks.
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Kookmin Bank uses the Basel III standardized method to measure market risk capital, which totaled ￦491.8 billion as of December 31, 2025, up from ￦471.1 billion a year earlier.
For non-trading activities, a positive Won-denominated of 0.128 years at year-end 2025 implies a ￦584 billion increase in net asset value if interest rates fall by one percentage point.
Net fee and commission income increased 6.4% to ￦4,098 billion, lifted by higher securities brokerage commissions and foreign currency transaction fees.
Total assets grew 5.3% to ￦797,923 billion, funded by a 6.1% rise in deposits, and the improved to 13.82%.
Non-performing retail loans rose to ￦564 billion and SME non-performing loans to ￦479 billion, while exposure to stressed sectors including real estate project financing and construction totaled ￦14,119 billion.
What changed
The 2024 filing flagged retail and SME non-performing loans as rising, with the credit card delinquency ratio at 1.36%. In 2025, non-performing retail loans reached ￦564 billion and SME non-performing loans ￦479 billion, confirming the deterioration continued.
The 2024 filing questioned whether the could hold at 2.02% amid government pressure. In 2025, grew only 1.9% as loan yields fell 4.4%, and the filing now cites government borrower support programs as a direct risk to interest income.
The 2024 filing flagged the ￦9,305 billion real estate project financing and ￦5,825 billion construction loan portfolios during an industry downturn. In 2025, stressed-sector exposure including these categories totaled ￦14,119 billion, and the bank warns allowances may be insufficient if asset quality declines further.
The 2024 filing noted market risk capital under Basel III had decreased to ￦471.1 billion. In 2025, it rose to ￦491.8 billion, and the net foreign currency open position shifted to a short U.S. dollar position of US$508.8 million from a long position of US$1,115.9 million.
After two years of steep reserve builds in 2022 and 2023 followed by a 35% decline in provisions in 2024, credit loss provisions rose again in 2025, up 15.6%, marking the third increase in four years.
What to watch
Whether the ￦14,119 billion in stressed-sector loans (real estate project financing, construction, shipbuilding, shipping) produce actual defaults that exceed the bank's existing allowances.
The trajectory of the as loan yields continue to fall and government borrower support programs compel lending on unfavorable terms.
Whether the ￦3,380 billion in trading gains, which swung from ￦1,012 billion the prior year, can be sustained given their reliance on volatile equity market conditions.
The impact of the new 50% core capital ratio requirement taking effect in 2027 on the insurance subsidiaries' capital planning under the K-ICS solvency regime.
The net foreign currency decreased to US$508.8 million at year-end 2025 from US$1,115.9 million, with a shift to a short U.S. dollar position.
estimates a potential ￦650 billion loss in the trading portfolio under an extreme scenario of a 25% equity market decline and a 71 drop in Korean treasury bond rates.
The company hedges market risks using instruments such as interest rate swaps, cross-currency swaps, and foreign exchange forwards, primarily to manage exposures within established limits.
Rising retail and SME delinquencies, government-led borrower support programs, and volatile interest rates and economic conditions pose material credit and margin risks.
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Non-performing retail loans rose to ￦564 billion and SME to ￦479 billion as of December 31, 2025, signaling deteriorating asset quality that may require higher provisions.
Government initiatives like the New Leap Fund and SME support programs compel participation in borrower relief, potentially reducing interest income and forcing credit terms the bank would not otherwise offer.
Exposure to stressed sectors (real estate project financing, construction, shipbuilding, shipping) totals ￦14,119 billion in loans, with allowances that may be insufficient if asset quality declines further.
Intense competition from internet-only banks, industry consolidation, and regulatory pressure to increase competition could compress net interest margins and erode market share.
The adoption of the K-ICS solvency regime may require insurance subsidiaries to raise additional capital, while a new 50% core capital ratio requirement takes effect in 2027.
KB Financial Group is a leading Korean financial holding company with operations in banking, credit cards, insurance, and securities.
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The group operates through subsidiaries including Kookmin Bank, KB Securities, KB Insurance, and KB Kookmin Card, serving ~39 million retail customers.
Its core banking business is split between retail (45.2% of loans, led by mortgage lending) and corporate (47.9% of loans, focused on SMEs).
A key strategy is to maximize synergies across subsidiaries by cross-selling comprehensive financial services and targeting high-net-worth clients.
The group maintains a vast domestic distribution network of 771 bank branches, supplemented by digital platforms like the 'KB Star Banking' mobile app.
Non-banking operations are substantial, with KB Insurance generating W14,348 billion in gross written premiums and KB Securities earning W779 billion in brokerage commissions in 2025.
The company is subject to extensive regulation, including capital requirements and a 1.0% additional buffer as a domestic systemically important bank holding company.
KB Financial Group's 2025 profit rose 16.1% to ￦5,841B, driven by higher net interest income and trading gains despite increased credit provisions.
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grew 1.9% to ￦13,073B as a 9.0% drop in (deposit costs fell) outpaced a 4.4% decline in interest income (loan yields fell).
rose 15.6% to ￦2,363B, mainly from preemptive corporate loan provisioning, while credit card loss provisions declined.
Net fee and commission income increased 6.4% to ￦4,098B, lifted by higher securities brokerage commissions and foreign currency transaction fees.
Net gains on financial instruments at fair value surged to ￦3,380B from ￦1,012B, driven by equity trading gains, though net insurance income fell 21.0% on higher claims.
Total assets grew 5.3% to ￦797,923B, funded by a 6.1% rise in deposits; the consolidated Common Equity Tier 1 ratio improved to 13.82%.