2019 Business ResultsFeb. 2020

ContentsI.

II.

III.

IV.

V.

2019 Financial Highlights

2019 Key Takeaways

2019 Financial Analysis

2019 Asset Quality

Appendix

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 audited 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. As KB Insurance and KB Capital became wholly-owned subsidiaries of the Group on Junly 7, 2017, the financial results of KB Insurance and KB Capital have been fully consolidated in the Group’s financial statements since 3Q17.

4. Total may not sum due to rounding.

Disclaimer Statement

I. 2019 Financial Highlights _ Overview

2

Group Profitability Overview Highlights

Credit Cost for 2019

Continued subnormal level of credit cost despite broad economic slowdown attributable to sound loan growth and preemptive risk management

0.20%(Bank 0.04%)

New LDR (Dec. 2019)

Marked sufficient level of new Loan-to-Deposit Ratio by strategically and preemptively managing fundings and loan growth

98.7%

Net Profit for 2019

Increased 8.2% YOY mainly on the back of with expanded net interest income and net fee & commission income

\3,311.8 bn(+8.2% YoY)

Net Profit for 4Q19

Decreased 43.1% QoQ due to ERP costs and weak insurance business despite higher net fee & commission income from major subsidiaries

\534.7 bn(-43.1% QoQ)

Net Interest Income for 2019

Increased 3.3%, W292bn YoY mostly backed by loan book momentum of the Bank and Credit Card overcoming NIM contraction

\9,196.8 bn(+3.3% YoY)

Net Fee & Commision for 2019

Delivered modest growth even in the midst of withering financial markets, mainly due to improved performance in trusts and IB businesses

\2,355.0 bn(+5.0% YoY)

Group’s Net Profit Analysis (bn won)

533 3 9 19 191

※ Non-recurring items for 4Q19 (before tax)

· Kookmin Bank ERP costs: W173bn· Kookmin Bank bonus payouts: W63bn· Provisioning and other expenses related to real estate funds sold by KB Securities: W24bn

3,061

+ 8.2%Interest income

Fee & commission

income

Profit from financial

investments,etc.

Provision for credit

losses

Non- operating

profit

Tax expense

Profit from insurance business

G&A expenses

292112

353

173

3,312

2018 2019

Others

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

8,904.9

2,243.4

-288.6

10,859.7

5,918.5 673.7

4,267.5

34.1

3,061.9

3,061.2

2018

3.3

5.0

N.A.

5.3

6.0 -0.5

5.2

27.0

8.2

8.2

YoY

2,319.4

580.8

-30.0

2,870.2

1,455.9 166.1

1,248.2

12.0

940.7

940.3

3Q19

0.4

9.9

N.A.

-2.5

24.6 26.7

-38.1

N.A.

-43.1

-43.1

QoQ2019

9,196.8

2,355.0

-119.9

11,431.9

6,271.0 670.3

4,490.6

43.3

3,313.2

3,311.8

4Q19

2,328.2

638.5

-169.0

2,797.7

1,814.3 210.4

773.0

-24.0

535.1

534.7

bn won, %

Net Interest Income

Net Fee & Commission Income

Other Operating Profit

Gross Operating Income

G&A Expenses Provision for Credit Losses

Net Operating Profit

Net Non-Operating Profit

Profit for the Period

Profit attributable to controlling interests

I. 2019 Financial Highlights _ Key Financial Indicators (1)

Maintained solid earnings fundamental despite

a broad economic slowdown

· 2019 ROE recorded 8.93% mainly on the back of expanded net interest income and net fee & commission income

· On a recurring basis disregarding ERP and digitalization costs etc., ROE for 2019 recorded 9.51% maintaining solid earnings fundamental dispite economic downturn

· KB aims to enhance profitability by expanding non-interest income and improving cost efficiency in response to low growth and interest rate environment

Continued quality loan growthapplying flexible lending policy

· Loans in Won of the Bank grew 4.5% YTD and 3.0% QoQ, amounting to W269tn

· Household loans increased 4.7% YTD and 3.4% QoQ mostly by Jeonse and unsecured loans

· Corporate loan increased 4.3% YTD and 2.5% QoQ mostly by prime SME loans on the back of eased market competition and flexible lending policy

Continued prudent margin management

· 2019 Bank NIM recorded 1.67%, marginally down by 4bp YoY despite key rate cuts and intensified market competition, which proves KB’s prudent financial management competency

· 4Q Bank NIM fell 6bp QoQ mainly due to decline of market rates and accelerated amortization of LOC related to Loan Conversion Program

· 2019 Group NIM marked 1.94% down by 5bp YoY further reflecting Card NIM contraction

257

2690.3 0.7 0.5

3.0

1.99 1.94

1.671.71

1.98 1.971.94

1.88

1.611.67

1.701.71

269261260258121118117116

2.50.81.2

-0.3148143143142

3.4

0.30.20.7

1Q1920192018 2Q19'19.3 '19.6 '19.9 '19.12 3Q19 4Q19

Group ROA, ROE (%) Loans in Won Growth (tn won, %) NIM (%)

20192018

Corporate Growth(QoQ)

Household Corporate Total Growth(QoQ)

Household Growth(QoQ)Group BankROA

ROE

ROA(Excl. non-recurring items)

ROE(Excl. non-recurring items)

3

+4.5%

2015 2016 2017 2018 2019

6.06

7.26

10.18

8.82

9.519.56

0.710.72

0.660.66

8.93

0.82

0.630.54

2015 2016 2017 2018 '19.3 '19.6 '19.9 '19.12(e)

I. 2019 Financial Highlights _ Key Financial Indicators (2)

2015 2016 2017 2018 1Q19 2Q19 3Q19 4Q19

0.44

0.22 0.20 0.21 0.21

0.15

0.210.25

0.08

0.04

0.20

15.48

13.59

14.3714.60

13.97 14.1114.40

14.64

14.3514.2314.1113.97

14.6014.25

13.47

15.27 15.23

14.60 14.7615.04

15.25

14.48

13.87

13.590.06

-0.03

0.050.040.050.11

0.34

2015 2016 2017 2018 2019

61.3

70.2

55.254.5 54.9

50.950.551.8

57.456.0

Group Cost-Income Ratio(CIR) (%) Credit Cost Ratio(CCR) (%) Group BIS Ratio (Basel III, %)

CIRCIR(Excl. non-recurring items)

BIS CET1Tier1Group CCR Bank CCRGroup CCR(Cumulative) Bank CCR(Cumulative)

4

Continued to enhance cost efficiency by managing

HR and cost structures

· 2019 Group CIR recorded 54.9%, similar level to 2018 CIR due to ERP costs and increased digitalization costs

· Excluding such one-off costs, CIR recorded 50.9% presenting continued improvement in cost efficiency

· KB continues to tighten the level of cost control by revisiting every costs groupwide except investment for future growth such as digitalization

Maintained subnormal level based on prudent

asset quality management

· 2019 Group CCR recorded 0.20% and retained subnormal level attributable to quality loan growth and preemptive risk management

· 4Q CCR posted a benign level of 0.25% despite absence of large-scale reversals of provisioning and seasonal factors such as evaluation based on FLC

· 2019 Bank CCR recorded only 0.04% on the back of conservative credit quality management and reversals of provisioning

The highest level of capital adequacy

in the Korean financial industry

· Group BIS and CET1 ratios are to mark 14.48%, 13.59%, respectively

· Contracted QoQ as a result of dividend payout and increased RWA, but maintained strong capital position and industry-highest capital adequacy

· Bank BIS and CET1 ratios are expected to record 15.85%, 14.38%, respectively

II. 2019 Key Takeaways _ 2020 Management Strategy & ESG for Sustainability

“Sustainable management through customer-centric innovation”

LEAD 2020

2019 Milestones

Kookmin Bank issued sustainability subordinated bond worth of USD 450M first time ever in Asia (February)

The Group launched “KB Innovative Finance Council” dedicated to providing support for start-ups and SMEs (April)

Kookmin Bank became the first Korean bank to issue sustainability contingent convertible bond of USD 500M (June)

The Group signed “Principles for Responsible Banking” under the U.N. Environment Program Finance Initiative and participated in “Collective Commitment to Climate Action” (September)

The Group pledged to comply with “Women’s Empowerment Principles” (October)

$

Key Achievements

KCGSBESTGOVERNANCE

The Group has been incorporated into “Dow Jones Sustainability Indices” for four consecutive years

The Group received an A+ rating and awarded as the best CGS company by KCGS for two consecutive years

The Group has been incorporated into “Bloomberg Gender Equality Index” for two consecutive years, first time ever in Korea

DJSI

ESG conscious lending & investments

Develop ESG products

Deliver inclusive finance“ESG Products and Services”

1 ESG Innovation for Sustainable Management

Expand social contribution

Mutual cooperation & shared growth

Human rights & diversity“Responsible Management for All

Stakeholders”

2 Socially-Responsible Management

Reduce carbon emissions

Management of environment risk

Leader in sustainable finance“Proactive Response to Climate

Changes”

3 Environment Friendly Management

2020 Management Strategy ESG Management for Sustainability

5

L Strengthen core competitivenessevel up the core· Reinforce core businesses & rebuild efficient business models·Innovate cost structure & improve cost efficiency·Strengthen crisis and risk management systems

E Expand business portfoliosxpansion (of the territory)

· Pursue inorganic growth in domestic market·Expand overseas business·Develop and secure new revenue sources

Establish dynamic & creative culturective & Creative KB· Advance groupwide operating systems·Diffuse “New KB” corporate culture·Strengthen ESG management & initiatives·Innovate human resources mgmt. & trainning programs

Pursue customer-centricdigital innovationigital Innovation (Customer-centric)

· Provide unrivaled customer experience based on data·Diversify customer access channels & marketing activity·Enhance KB digital ecosystem & Digital Transformation feasibility

A

D

II. 2019 Key Takeaways _ KB Globalization & Acquisition of PRASAC

ORGANIC INORGANIC Target Net IncomeContribution

2018

1.8%

5yrs

10%

10yrs

20%

・ PRASAC

・ Maritime Securities Incorporation

・ Tomato Specialized Bank

・ Bank Bukopin

Expansion of KB Networks

M&As

・ KB KOLAO Leasing

・ Kookmin Bank(New York, London, Vietnam)

・ KB MFI Myanmar Loan M/S 5-year Average Growth of Loans: 36% Key Financials

· In December 2019, Kookmin Bank announced its BOD resolution to acquire PRASAC

· Number of shares acquired : Approx. 161 million shares (70% stake)

· Purchase price : USD 603M (approx. 2.13 times PBR against expected book value of 2019)

· Acquisition schedules : Acquisition of 100% ownership stake will be split to manage downside risks ◦ First 70% acquisition is scheduled to be made by March 2020, and the remaining 30% after 2021

· Unrivaled No. 1 MDI in Cambodia

· (Cambodia) Launched Liiv KB Cambodia(local digital banking)2016 Bank

· (Indonesia) Acquired 22% stake in Bank Bukopin

· (Cambodia) Launched KB Daehan Specialized Bank

· (Vietnam) Established KB Securities Vietnam(former MSI)

2018Bank

Card

· (Vietnam) Acquired Maritime Securities Incorporation(MSI)

· (Laos) Established KB KOLAO Leasing(auto finance company)

· (Myanmar) Established KB MFI Myanmar

2017 Card Capital

Bank

· (Cambodia) Acquired 70% stake in PRASAC, the largest local MDI

· (Cambodia) Liiv KB Cambodia reached 98 thousand users

· (Cambodia) KB Daehan Specialized Bank recorded USD 0.29M net income for three quaters 2019

· (Vietnam) KB Securities Vietnam raised capital by KRW 70bn and ranked 10th largest securities company in Vietnam

2019

Bank

Card

Securities

Bank

PRASAC(41.4%)

USD million

B/S

Total assetsLoansDeposits

2,3791,9621,291

793.8%/29.4%

0.7%16.5%

2018

2018

2020 2021 ~ 2022 2023 ~

· Leap toward a leading bank in Cambodia through successful PMI that incorporates Kookmin Bank’s key expertise in retail and digital banking with PRASAC’s own competitiveness

· Implement and achieve key tasks by actively interacting with PRASAC’s top management

· Keep KB’s controlling power over the board of PRASAC by nominating six out of nine directors

Rebuild corporate governance

Identify areas for improvement

Convert to commercial bank & merger with KB Cambodia

Leap towardNo.1 Bank in Cambodia

Improve funding and key business areas

Optimize sales channels and IT infrastructure

Redesign risk management and internal controls

Establish new vision and corporate values

(USD million)

LoansDepositsBorrowings

2014 2015 2016 2017 2018

581857

1,0311,549

1,962

KB Globalization Acquisition of PRASAC, the largest MDI in Cambodia

Global Business Strategy

Accelerated Globalization

Acquisition Overview

PRASAC Highlights

PMI Plans

6

Net incomeROA/ROENPLCAR

Securities

Securities

III. 2019 Financial Analysis _ Net Interest Income

Net Interest Income (bn won)

Loan Growth (tn won, %)

NIM (%)

'18.3

239244

252257 258 260 261

269

'18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12

Bank Loans in Won Growth(QoQ) Growth(YTD)

2.01

1.71 1.71 1.72

1.70

2.00 1.99

1.8 2.13.2

2.10.3 0.7 0.5

3.0

4.5

1.40.9

9.6

7.3

4.0

1.98

1.98

1.71 1.701.67

1.61

1.67

1.971.94

1.88

1.94

1.99

1.71

2015 2016 2017 2018 2019

6,203 6,403

8,2478,905 9,197

3Q19 4Q19

2,319 2,328

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

BankGroup Cumulative

2019bn won, % 2018 YoY 4Q19 3Q19 QoQ

Interest Income

Loans

Financial Investments

Other

Interest Expense

Deposits

Debts & Debentures

Other

Net Interest Income

14,639.2

12,295.2

2,042.8

301.2

5,442.4

3,481.1

1,837.0

124.3

9,196.8

13,734.6

11,459.8

2,036.1

238.7

4,829.7

3,041.7

1,693.3

94.7

8,904.9

6.6

7.3

0.3

26.2

12.7

14.4

8.5

31.3

3.3

3,671.6

3,086.2

509.0

76.4

1,352.2

863.8

457.6

30.8

2,319.4

-1.2

-1.5

-0.3

2.6

-3.9

-3.9

-3.8

-7.1

0.4

3,627.2

3,041.3

507.5

78.4

1,299.0

830.2

440.2

28.6

2,328.2

Group Net Interest Income

7

III. 2019 Financial Analysis _ Net Non-Interest Income

Net Fee & Commission Income Contribution

49.9% 48.0%

50.1% 52.0%

2018 2019

Others (Incl. subsidiaries related activities)Banking Activities

Bancassurance TrustsMutual Fund Sales etc.

IB

Brokerage Credit Card

Trusts Others

Banking Non-banking

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)

172

1,156

10998

1,088

21292193

1,125

240133

552

1,123

230

265

625

1,133

380

262

580

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

10168143

269

10989

154

287

581

3Q19

639

4Q19

Composition of Net Fee & Commission Income

66

129

308

222

Bank

408

248

202

291

Non-Bank

245

244

SecuritiesBank Card Others(Incl. adjustment for consolidation)

Group Net Non-Interest Income

2019

2,355.0

424.2 542.1

172.2

145.8

214.5 446.0 410.2

-119.9

2,235.1

2018

2,243.4

452.7 496.4

149.6

167.1

208.4 518.3 250.9

-288.6

1,954.8

YoY

5.0

-6.3 9.2

15.1

-12.7

2.9 -13.9 63.5

N.A.

14.3

4Q19

638.5

134.4 131.6

48.5

34.2

50.9 124.8 114.1

-169.0

469.5

3Q19

580.8

102.2 128.5

42.4

38.5

56.1 109.3 103.8

-30.0

550.8

QoQ

9.9

31.5 2.4

14.4

-11.2

-9.3 14.2

9.9

N.A.

-14.8

bn won, %

Net Fee & Commission Income

Credit Card Fees Trusts

Agent Activity Fees (Incl. Bancassurance)

Represent Securities (Incl. ITC Products) Banking Activity Fees Securities Business Other

Other Operating Income

Net Non-Interest Income

2,3552,2432,050

1,5851,535

2015 2016 2017 2018 2019

8

(2019, bn won)

Provision for Credit Losses & CCR (bn won, %)

2015 2016 2017 2018 2019 3Q19 4Q19

1,037

539 548 674 670

166210

III. 2019 Financial Analysis _ G&A Expenses & Provision for Credit Losses

Provision for Credit Losses CCR

3891,041

345 434 484

68

1,388

306

1,508

5,485 5,787

5,284

4,188 4,135

56.0

61.370.2

55.2 54.5 54.9

57.451.8 50.5 50.9

G&A Expenses & CIR (bn won, %)

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

2015 2016 2017 2018 2019 3Q19 4Q19

G&A Expenses Non-recurring items CIR CIR(Excl. non-recurring items)

0.44

0.22 0.20 0.21 0.20 0.21 0.25

Group G&A Expenses Group Provision for Credit Losses

3,874.4

408.8

1,443.6

191.7

5,918.5

2018

2.1

91.9

-8.8

11.9

6.0

YoY

884.2

195.2

326.3

50.2

1,455.9

3Q19

31.0

15.8

16.3

0.2

24.6

QoQ2019

3,955.3

784.4

1,316.7

214.6

6,271.0

4Q19

1,158.5

226.1

379.4

50.3

1,814.3

bn won, %

Employee Benefits

Depreciation & Amortization

Administrative Expenses

Others

G&A Expenses

685.4 -25.7

14.6

-0.6

673.7

2018

-2.3 N.A.

N.A.

N.A.

-0.5

YoY

166.0 -0.1

0.0

0.2

166.1

3Q19

30.6 N.A.

N.A.

N.A.

26.7

QoQ2019

669.5 1.9

-3.0

1.9

670.3

4Q19

216.8 -6.3

0.4

-0.5

210.4

bn won, %

Provision for Loan Losses Provision for Guarantees

Provision for Unused Commitments

Provision for Financial Guarantee Liabilities

Provision for Credit Losses

9

12.915.94.1

275.5

28.3

59.2

131.8

51.7

30.8

51.0

123.3

47.6

25.8

50.6

115.2

43.3

22.4

52.7

97.8

43.719.6

47.5

19.1

34.2

18.336.114.328.1

16.616.16.1

290.3

20.415.832.4

307.1

19.517.732.437.4

329.8

45.1

34.820.522.2

357.0387.4

23.723.036.6

47.9

III. 2019 Financial Analysis _ Financial Position Overview

329.1

375.7

436.8

479.6518.6

2014 2015 2016 2017 2018 2019

2014 2015 2016 2017 2018 2019

308.4

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

Bank Trust Securities Asset Management Real Estate Trust & Others

Bank Securities Insurance Card Others(Incl. adjustment for consolidation)

96.8120.4

216.6234.9

252.7271.0

Group Assets (tn won)

Group AUM (tn won)

10

tn won, %

Assets

Liabilities

Shareholder's Equity

Cash & Due from Financial Institutions FVTPL1) Assets

Financial Investments Loans Property & Equipment Other Assets

FVTPL1) Liabilities Deposits Debts Debentures Other Liabilities

Share Capital Hybrid Securities Capital Surplus

Accumulated Other Comprehensive Income Retained Earnings Treasury Shares Non-Controlling Interests

Note 1) Fair Value Through Profit or Loss 2) Based on simple arithmetic sum of each subsidiary’s total assets on the financial statement for group reporting and AUM 3) Including the Bank’s trust asset not subject to group reporting

Group Total Assets 2)

AUM 3)

506.2

467.5

38.7

22.0

51.868.4

326.37.6

30.1

17.4288.6

33.650.677.3

2.10.4

17.1

0.5

19.2-1.20.6

2019.9

772.5

266.2

20.8

53.771.8

339.77.9

24.7

15.5305.6

37.850.969.7

2.10.4

17.1

0.3

19.7-1.1

0.6

518.6

479.5

39.1

2019.12

271.0

789.6

-5.5

3.75.04.13.9

-17.9

-10.95.9

12.50.6

-9.8

--

0.0

-40.0

2.6N.A.0.0

2.4

2.6

1.0

QoQ

1.8

2.2

2.5

5.316.4

6.423.417.6

1.310.414.5-4.56.4

-N.A.0.0

50.0

13.9N.A.N.A.

8.1

8.0

9.5

YTD

7.2

7.9

15.3276.8

33.053.365.5

2.10.0

17.1

0.2

17.3-1.00.0

479.6

443.9

35.7

2018.12

20.3

51.061.7

319.26.4

21.0

731.8

252.7

Group Financial Position

6.6

12.7

25.7

26.3

28.7

7.0

12.4

25.5

27.7

26.4

6.8

12.3

25.6

29.4

26.5

8.112.1

24.4

29.3

26.5

12.98.2

23.3

29.9

25.8

III. 2019 Financial Analysis _ Assets & Liabilities

Loan Portfolio & LDR (tn won, %)

2015 2016 2017 2018 2019

207.3 220.6 234.9 257.4 269.0

Mortgage General SOHO SME(Excl. SOHO) Large Corp. etc. LDR

99.0 98.7 98.8 99.6 94.1

Bank Loans in Won

Bank Deposits & Debentures in Won

143.0

72.1

70.9

33.0

118.1

100.7

67.3

17.4

261.1

2019.9

3.4

7.1

-0.3

-3.6

2.5

2.6

2.8

2.3

3.0

QoQ

4.7

10.4

-1.0

-7.6

4.3

5.4

5.5

-1.7

4.5

YTD2019.12

147.9

77.2

70.7

31.8

121.1

103.3

69.2

17.8

269.0

2018.12

141.3

69.9

71.4

34.4

116.1

98.0

65.6

18.1

257.4

tn won, %

Household

Mortgage

General

[Home Equity]

Corporate

SME

[SOHO]

Large Corp. etc.

Total

266.3

116.8

144.4

131.1

5.1

13.7

280.0

2019.9

5.7

6.6

5.9

6.3

-17.6

-5.1

5.2

QoQ

9.6

10.4

8.7

9.3

20.0

-27.0

7.2

YTD2019.12

281.6

124.5

152.9

139.3

4.2

13.0

294.6

2018.12

256.9

112.8

140.6

127.4

3.5

17.8

274.7

tn won, %

Deposits

Core Deposits

Time & Savings

[Time Deposits]

CD, RP, etc.

Debentures

Total

Card Assets

17.8

11.5

4.8

5.1

1.2

3.0

20.8

2019.9

17.3

11.1

4.8

4.9

1.3

2.2

19.5

QoQ

7.5

9.0

6.3

8.2

-7.7

50.0

12.3

YTD2019.12

18.6

12.1

5.1

5.3

1.2

3.3

21.9

2018.12

4.5

5.2

6.3

3.9

0.0

10.0

5.3

tn won, %

Credit Card

Credit Sales

[Installments]

Card Loans

Cash Advance

Factoring, etc.

Total

11

IV. 2019 Asset Quality _ Group Overview

Credit Cost Ratio (%) NPL Coverage Ratio (%)

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

Group Bank Card Group Bank Card

'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12

Precautionary & Below Ratio NPL Ratio

0.08

0.23

2.51

2.25

0.13

-0.05 -0.01

0.17

2.17

0.13

0.30

2.44

0.05

0.21

2.23

-0.03

0.15

2.06

0.06

0.21

2.15

0.08

0.25

2.14

1.56

133.3

292.9

0.70

1.50

135.6

289.8

0.66

1.46

137.9

283.7

0.61

1.42

138.9

278.1

0.61

1.39

138.2

268.6

0.60

1.40

132.8

262.4

0.59

1.38

135.6

246.6

0.55

1.27

147.1

263.4

0.49

Precautionary & Below Ratio / NPL Ratio (%)

'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12

Group Asset Quality

12

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

323,399.9

2,665.6 806.7 637.8 339.3

1,783.8

0.55%

2,418.5

135.6%

2019.9

316,736.9

2,591.5 694.9 882.2 343.3

1,920.4

0.61%

2,667.6

138.9%

QoQ

5.6

0.7 -4.7

-20.6 -16.0

-14.0

-0.12%p

-8.9

8.2%p

YTD2019.12

334,552.5

2,608.4 662.5 700.9 288.4

1,651.8

0.49%

2,430.0

147.1%

2018.12

3.4

-2.1 -17.9

9.9 -15.0

-7.4

-0.06%p

0.5

11.5%p

bn won, %

Total Loans for NPL Classification

Precautionary Substandard Doubtful Estimated Loss

Substandard & Below Loans(NPL)(A)

NPL Ratio

Loan Loss Reserves(B)

NPL Coverage Ratio(B/A)

117.6 119.8 122.0 122.3 120.2115.3 118.1 130.2

IV. 2019 Asset Quality _ Bank & Card

Delinquency Ratio (%)

1.25

0.28 0.26 0.25 0.23 0.27 0.26 0.29 0.24

1.23 1.26 1.201.32 1.25

1.16 1.11

'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12

CardBank

CardBank

Bank Credit Cost Ratio (%)

0.10

0.05

0.16 0.15 0.12 0.16 0.14 0.19

-0.08-0.20

-0.06 0.130.13

-0.16

-0.05

-0.27

0.08

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

Bank Household Corporate

0.05-0.03

0.06

0.190.08-0.04

NPL Ratio (%)

1.40

0.58 0.54 0.48 0.48 0.47 0.45 0.41 0.37

1.40 1.41 1.38 1.46 1.46 1.49 1.37

'18.3 '18.6 '18.9 '18.12 '19.3 '19.6 '19.9 '19.12

Bank Asset Quality

280,043.4

1,321.0 712.9 277.9 156.8

0.41%

118.1%

2019.9

274,486.0

1,245.7 607.4 505.5 194.7

0.48%

122.3%

QoQ

5.3

0.3 -2.8

-30.7 -40.1

-0.11%p

7.9%p

YTD2019.12

288,896.7

1,249.2 590.4 350.2 116.6

0.37%

130.2%

2018.12

3.2

-5.4 -17.2 26.0

-25.6

-0.04%p

12.1%p

bn won, %

Total Loans for NPL Classification

Precautionary Substandard Doubtful Estimated Loss

NPL Ratio

NPL Coverage Ratio

Card Asset Quality

20,863.5

842.1 0.6

243.1 67.3

1.49%

246.6%

2019.9

19,499.6

799.5 3.2

217.5 48.6

1.38%

278.1%

QoQ

12.4

9.5 12.5

2.5 50.2

-0.01%p

-14.7%p

YTD2019.12

21,922.4

875.1 3.6

223.0 73.0

1.37%

263.4%

2018.12

5.1

3.9 500.0

-8.3 8.5

-0.12%p

16.8%p

bn won, %

Total Loans for NPL Classification

Precautionary Substandard Doubtful Estimated Loss

NPL Ratio

NPL Coverage Ratio

Provision for Loan Losses

97.1

177.5 -80.4

416.2

2018

41.5

70.1 -28.6

110.3

3Q19

30.4

-2.6 N.A.

4.9

QoQ2019

113.2

243.1 -129.9

432.6

54.1

68.3 -14.2

115.7

4Q19YoY

16.6

37.0 N.A.

3.9

bn won, %

Bank

Household Corporate

Card

13

-0.01

V. Appendix _ Overview of Group Subsidiaries 1) (2019)

(bn won) Assets Shareholder's Equity Profit for the PeriodOwnership ROA ROE

KB Kookmin Bank

KB Securities

KB Insurance

KB Kookmin Card

KB Asset Management

KB Capital

KB Life Insurance

KB Real Estate Trust

KB Savings Bank

KB Investment

KB Data Systems

KB Credit Information

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

387,425.0

47,857.1

36,552.4

22,990.1

310.0

11,190.6

9,801.9

377.9

1,361.0

757.0

41.7

27.8

29,004.2

4,684.7

3,862.9

4,064.9

195.2

1,154.5

615.3

292.8

212.4

214.8

20.7

14.9

2,439.1

257.9

234.3

316.5

48.9

117.0

16.0

61.7

16.3

11.3

4.7

-0.3

0.65%

0.57%

0.65%

1.48%

18.85%

1.17%

0.16%

18.09%

1.21%

1.66%

11.60%

N.A.

8.82%

5.62%

6.23%

8.02%

28.47%

10.74%

2.67%

23.52%

7.89%

6.04%

24.92%

N.A.

Note 1) Based on each subsidiary’s financial statements for group reporting

14

-17.5

97.2

-57.3

22.4

94.3

12.1

-84.0

-9.0

-119.4

-117.9

V. Appendix _ Condensed Income Statement by Subsidiaries

Profit attributable to controlling interests

Profit attributable to controlling interests

KB Kookmin Bank

KB Kookmin Bank

KB Kookmin Card

KB Kookmin Card

KB Asset Management

KB Asset Management

KB Life Insurance

KB Life Insurance

2019

2018

KB Securities

KB Securities

KB Capital

KB Capital

Others 1)

Others 1)

Net Interest Income

Net Fee & Commission Income

Other Operating Profit

Gross Operating Income

G&A Expenses

Provision for Credit Losses

Net Operating Profit

Net Non-Operating Profit

Profit for the Period

Net Interest Income

Net Fee & Commission Income

Other Operating Profit

Gross Operating Income

G&A Expenses

Provision for Credit Losses

Net Operating Profit

Net Non-Operating Profit

Profit for the Period

9,196.8

2,355.0

-119.9

11,431.9

6,271.0

670.3

4,490.6

43.3

3,313.2

3,311.8

8,904.9

2,243.4

-288.6

10,859.7

5,918.5

673.7

4,267.5

34.1

3,061.9

3,061.2

6,363.8

1,133.3

-178.0

7,319.1

3,887.4

103.6

3,328.1

-9.6

2,439.1

2,439.1

6,100.7

1,122.7

-370.0

6,853.4

3,767.0

93.9

2,992.5

93.9

2,259.2

2,259.2

529.9

580.4

-15.9

1,094.4

757.3

14.3

322.8

30.4

257.9

257.9

542.2

625.7

-187.5

980.4

735.2

10.1

235.1

13.9

178.9

178.8

616.4

-152.6

667.6

1,131.4

843.8

-13.0

300.6

26.5

234.7

234.3

616.2

-147.0

693.7

1,162.9

789.4

14.5

359.0

8.1

262.4

262.3

1,230.3

261.8

-231.1

1,261.0

441.9

439.7

379.4

4.5

316.6

316.5

1,168.3

264.7

-128.0

1,305.0

404.9

431.0

469.1

-32.9

286.6

286.6

0.9

117.2

9.5

127.6

60.9

0.0

66.7

-0.5

48.9

48.9

1.0

113.3

-3.2

111.1

56.6

0.0

54.5

-1.5

39.6

39.6

313.8

334.5

-257.0

391.3

118.9

116.6

155.8

1.0

119.4

117.0

306.6

180.1

-139.9

346.8

98.6

92.3

155.9

1.9

113.4

111.9

159.2

-16.8

-57.7

84.7

66.5

-3.0

21.2

0.0

16.0

16.0

185.1

-13.2

-85.5

86.4

63.4

0.4

22.6

-1.4

14.8

14.8

-15.2

97.1

-68.2

13.7

3.4

31.5

-21.2

-47.9

-93.0

-92.0

KB Insurance

KB Insurance

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

(bn won)

(bn won)

Group

Group

15