2Q earnings beat led by robust non-interest income

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2Q earnings beat led by robust non-interest income

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KB Financial Group

2Q earnings beat led by robust non-

interest income

Reiterate Rating: BUY | PO: 233,900 KRW | Price: 174,400 KRW

Earnings beat on strong non-interest income 23 July 2026

KB posted 2Q26 net profit of W1,992bn, up 15% YoY/5% QoQ, above Bloomberg Equity

consensus of W1,893bn and our estimate of W1,973bn. Though interest income came in

weaker than our expectation with group NIM down 5bp QoQ at 1.94% in 2Q26, stronger-

Key Changesthan-expected non-interest income more than offset the weakness in interest income.

Fee income growth was the key driver, supported by solid brokerage commissions and (W) Previous Current

robust capital market-related product sales. That said, we think softness in NIM reflects Price Obj. 228,100.00 233,900.00

management’s decision to secure marketable deposits ahead of the expected rate hike 2026E EPS 18,547.08 19,091.64

in 2H, as well as a mix shift toward SME/large-corp lending under the govt’s productive 2027E EPS 20,231.72 20,455.16

finance push. As funding cost pressure eases and asset deployment turns profitability- 2028E EPS 21,918.54 22,111.90

focused in 2H, we only see a modest impact on the full-year NIM trajectory. Along with

the results, KB announced an additional 2H buyback and cancellation of W700bn. With an Jisun Lee >>

Research Analyst

additional W180bn of excess capital in 2H, we believe it will provide further capacity for Merrill Lynch (Seoul)

shareholder returns, though the mix has yet to be decided. We reiterate Buy. +82 2 3707 0418 jisun.lee@bofa.com

Securities arm drives RoE expansion SimonResearchWoo,AnalystCFA >>

KB Securities’ contribution to group net profit expanded to c.21% in 2Q, driving non- Merrillsimon.woo@bofa.comLynch (Seoul)