EX-99.2 3 d891293dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Financial Position

December 31, 2024 and 2023, and January 1, 2023

 

(in millions of Korean won)

 

     Notes      December 31, 2024     December 31, 2023     January 1, 2023  

Assets

          

Cash and due from financial institutions

      4,6,7,8,39      W 29,869,111     W 29,836,311     W 32,474,750  

Financial assets at fair value through profit or loss

      4,6,8,12        79,450,093       77,038,267       70,092,497  

Derivative financial assets

      4,6,9        11,730,767       6,157,628       9,446,580  

Loans measured at amortized cost

      4,6,10,11        472,071,840       444,805,287       433,038,931  

Financial investments

      4,6,8,12        131,009,464       122,199,529       115,452,659  

Investments in associates and joint ventures

      13        947,390       722,222       682,669  

Insurance contract assets

      38        276,191       229,640       83,304  

Reinsurance contract assets

      38        1,497,147       1,642,432       1,484,622  

Property and equipment

      14        5,390,015       4,945,699       4,991,467  

Investment property

      14        3,759,176       4,109,784       3,148,340  

Intangible assets

      15        1,966,684       1,950,858       1,858,470  

Net defined benefit assets

      25        258,500       374,090       478,934  

Current income tax assets

         339,855       244,317       204,690  

Deferred income tax assets

      17,34        278,824       274,225       188,372  

Assets held for sale

      18        136,838       208,230       211,758  

Other assets

      4,6,19        18,863,637       20,986,897       14,815,439  
     

 

 

    

 

 

    

 

 

  

Total assets

       W 757,845,532     W 715,725,416     W 688,653,482  
     

 

 

    

 

 

    

 

 

  

Liabilities

          

Financial liabilities at fair value through profit or loss

      4,6,20      W 10,720,231     W 10,920,435     W 12,271,604  

Derivative financial liabilities

      4,6,9        11,783,494       6,210,639       9,509,769  

Deposits

      4,6,21        435,687,897       406,512,434       393,928,904  

Borrowings

      4,6,22        68,077,012       69,583,561       71,717,366  

Debentures

      4,6,23        76,171,257       69,176,668       68,698,203  

Insurance contract liabilities

      38        55,863,701       50,617,990       46,372,434  

Reinsurance contract liabilities

      38        56,266       36,030       31,728  

Provisions

      24        927,632       1,444,418       933,701  

Net defined benefit liabilities

      25        100,187       81,869       85,745  

Current income tax liabilities

         530,720       145,335       998,681  

Deferred income tax liabilities

      17,34        1,682,292       2,094,912       1,452,057  

Other liabilities

      4,6,26        36,429,662       40,264,935       28,850,033  
     

 

 

    

 

 

    

 

 

  

Total liabilities

         698,030,351       657,089,226       634,850,225  
     

 

 

    

 

 

    

 

 

  

Equity

          

Share capital

         2,090,558       2,090,558       2,090,558  

Hybrid securities

         5,082,578       5,032,803       4,434,251  

Capital surplus

         16,646,734       16,647,916       16,940,731  

Accumulated other comprehensive income

      36        496,922       2,152,644       1,002,881  

Retained earnings

         34,808,220       31,934,600       28,890,922  

Treasury shares

         (1,236,060 )      (1,165,837 )      (836,188 ) 
     

 

 

    

 

 

    

 

 

  

Equity attributable to shareholders of the Parent Company

      27        57,888,952       56,692,684       52,523,155  

Non-controlling interests

         1,926,229       1,943,506       1,280,102  
     

 

 

    

 

 

    

 

 

  

Total equity

         59,815,181       58,636,190       53,803,257  
     

 

 

    

 

 

    

 

 

  

Total liabilities and equity

       W 757,845,532     W 715,725,416     W 688,653,482  
     

 

 

    

 

 

    

 

 

  

The above consolidated statements of financial position should be read in conjunction with the accompanying notes.

 

1

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023

 

(in millions of Korean won, except per share amounts)

 

     Notes      2024     2023  

Interest income

       W 30,491,385     W 29,142,024  

Interest income from financial instruments at fair value through other comprehensive income and amortized cost

         29,001,556       27,705,759  

Interest income from financial instruments at fair value through profit or loss

         1,458,512       1,415,366  

Insurance finance interest income

         31,317       20,899  

Interest expense

         (17,664,671 )      (16,961,164 ) 

Interest expense

         (16,186,914 )      (15,426,706 ) 

Insurance finance interest expense

         (1,477,757 )      (1,534,458 ) 
     

 

 

    

 

 

  

Net interest income

      5,28        12,826,714       12,180,860  
     

 

 

    

 

 

  

Fee and commission income

         5,481,843       5,368,074  

Fee and commission expense

         (1,632,216 )      (1,694,550 ) 
     

 

 

    

 

 

  

Net fee and commission income

      5,29        3,849,627       3,673,524  
     

 

 

    

 

 

  

Insurance income

         11,456,191       11,005,471  

Insurance income

         11,017,155       10,322,356  

Reinsurance income

         439,036       683,115  

Insurance expense

         (9,806,430 )      (9,558,619 ) 

Insurance service expense

         (8,884,168 )      (8,720,568 ) 

Reinsurance expense

         (922,262 )      (838,051 ) 
     

 

 

    

 

 

  

Net insurance income

      5,38        1,649,761       1,446,852  
     

 

 

    

 

 

  

Net gains on financial instruments at fair value through profit or loss

      5,30        1,012,081       2,163,065  
     

 

 

    

 

 

  

Other insurance finance expenses

      38        (437,001 )      (572,476 ) 
     

 

 

    

 

 

  

Net other operating expenses

      5,31        (1,873,011 )      (2,712,989 ) 
     

 

 

    

 

 

  

General and administrative expenses

      5,32        (6,938,624 )      (6,647,406 ) 
     

 

 

    

 

 

  

Operating income before provision for credit losses

      5        10,089,547       9,531,430  
     

 

 

    

 

 

  

Provision for credit losses

      5,7,11,12,19,24        (2,044,286 )      (3,146,409 ) 
     

 

 

    

 

 

  

Net operating income

         8,045,261       6,385,021  
     

 

 

    

 

 

  

Share of profit (loss) of associates and joint ventures

      13        (16,884 )      33,110  

Net other non-operating expenses

      33        (1,043,130 )      (297,980 ) 
     

 

 

    

 

 

  

Net non-operating expenses

         (1,060,014 )      (264,870 ) 
     

 

 

    

 

 

  

Profit before income tax expense

         6,985,247       6,120,151  

Income tax expense

      34        (1,956,641 )      (1,593,817 ) 
     

 

 

    

 

 

  

Profit for the year

      5        5,028,606       4,526,334  
     

 

 

    

 

 

  

(Continued)

 

2

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

Years Ended December 31, 2024 and 2023 (cont’d)

 

(in millions of Korean won, except per share amounts)

 

     Notes      2024     2023  

Items that will not be reclassified to profit or loss:

        

Remeasurements of net defined benefit liabilities

      25      W (85,375 )    W (72,170 ) 

Share of other comprehensive loss of associates and joint ventures

         —        (2 ) 

Gains (losses) on equity securities at fair value through other comprehensive income

         (254,864 )      69,605  

Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk

         (5,514 )      (52,863 ) 
     

 

 

    

 

 

  
        (345,753 )      (55,430 ) 
     

 

 

    

 

 

  

Items that may be reclassified subsequently to profit or loss:

 

     

Currency translation differences

         582,872       317  

Gains on debt securities at fair value through other comprehensive income

         1,468,299       3,304,471  

Share of other comprehensive income of associates and joint ventures

         165       26  

Gains on cash flow hedging instruments

      9        34,741       53,923  

Losses on hedging instruments of net investments in foreign operations

      9        (186,708 )      (14,659 ) 

Insurance finance expense

      38        (3,176,328 )      (2,117,504 ) 
     

 

 

    

 

 

  
        (1,276,959 )      1,226,574  
     

 

 

    

 

 

  

Other comprehensive income (expense) for the year, net of tax

 

      (1,622,712 )      1,171,144  
     

 

 

    

 

 

  

Total comprehensive income for the year

       W 3,405,894     W 5,697,478  
     

 

 

    

 

 

  

Profit (loss) attributable to:

      5       

Shareholders of the Parent Company

       W 5,078,221     W 4,594,835  

Non-controlling interests

         (49,615 )      (68,501 ) 
     

 

 

    

 

 

  
      W 5,028,606     W 4,526,334  
     

 

 

    

 

 

  

Total comprehensive income for the year attributable to:

 

     

Shareholders of the Parent Company

       W 3,419,852     W 5,772,352  

Non-controlling interests

         (13,958 )      (74,874 ) 
     

 

 

    

 

 

  
      W 3,405,894     W 5,697,478  
     

 

 

    

 

 

  

Earnings per share

      37       

Basic earnings per share

       W 12,880     W 11,483  

Diluted earnings per share

         12,726       11,218  

The above consolidated statements of comprehensive income should be read in conjunction with the accompanying notes.

 

3

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Changes in Equity

Years Ended December 31, 2024 and 2023

 

(in millions of Korean won)

 

    Equity attributable to shareholders of the Parent Company              
    Notes     Share
capital		     Hybrid
securities		     Capital
surplus		     Accumulated
other
comprehensive
income		     Retained
earnings		     Treasury
shares		     Non-controlling
interests		     Total
equity		  

Balance as of January 1, 2023

     W 2,090,558     W 4,434,251     W 16,940,731     W 1,249,922     W 28,948,425     W (836,188 )    W 1,280,102     W 54,107,801  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes in accounting policies

             (247,041 )      (57,503 )          (304,544 ) 

Balance as of January 1, 2023 (After the restatement) Comprehensive income for the year

       2,090,558       4,434,251       16,940,731       1,002,881       28,890,922       (836,188 )      1,280,102       53,803,257  

Profit (loss) for the year

       —        —        —        —        4,594,835       —        (68,501 )      4,526,334  

Remeasurements of net defined benefit liabilities

       —        —        —        (72,525 )      —        —        355       (72,170 ) 

Currency translation differences

       —        —        —        7,306       —        —        (6,989 )      317  

Gains on financial instruments at fair value through other

comprehensive income and transfer to retained earnings

       —        —        —        3,346,061       27,755       —        260       3,374,076  

Share of other comprehensive income of associates and joint ventures

       —        —        —        24       —        —        —        24  

Gains on cash flow hedging instruments

       —        —        —        53,923       —        —        —        53,923  

Losses on hedging instruments of net investments in foreign operations

       —        —        —        (14,659 )      —        —        —        (14,659 ) 

Insurance finance expenses

       —        —        —        (2,117,504 )      —        —        —        (2,117,504 ) 

Fair value changes of financial liabilities designated at fair value

through profit or loss due to own credit risk

       —        —        —        (52,863 )      —        —        —        (52,863 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income for the year

       —        —        —        1,149,763       4,622,590       —        (74,875 )      5,697,478  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactions with shareholders

                  

Annual dividends paid to shareholders of the Parent Company

       —        —        —        —        (564,970 )      —        —        (564,970 ) 

Quarterly dividends paid to shareholders of the Parent Company

       —        —        —        —        (586,931 )      —        —        (586,931 ) 

Issuance of hybrid securities

       —        598,552       —        —        —        —        429,078       1,027,630  

Dividends on hybrid securities

       —        —        —        —        (184,915 )      —        (57,179 )      (242,094 ) 

Acquisition of treasury shares

       —        —        —        —        —        (571,745 )      —        (571,745 ) 

Retirement of treasury shares

       —        —        —        —        (242,096 )      242,096       —        —   

Ownership changes in subsidiaries

       —        —        (292,815 )      —        —        —        366,380       73,565  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total transactions with shareholders

       —        598,552       (292,815 )      —        (1,578,912 )      (329,649 )      738,279       (864,545 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2023

     W 2,090,558     W 5,032,803     W 16,647,916     W 2,152,644     W 31,934,600     W (1,165,837 )    W 1,943,506     W 58,636,190  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of January 1, 2024

     W 2,090,558     W 5,032,803     W 16,647,916     W 2,152,644     W 31,934,600     W (1,165,837 )    W 1,943,506     W 58,636,190  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Comprehensive income for the year

                  

Profit (loss) for the year

       —        —        —        —        5,078,221       —        (49,615 )      5,028,606  

Remeasurements of net defined benefit liabilities

       —        —        —        (85,946 )      —        —        571       (85,375 ) 

Currency translation differences

       —        —        —        547,337       —        —        35,535       582,872  

Gains (losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings

       —        —        —        1,216,509       (2,647 )      —        (427 )      1,213,435  

Share of other comprehensive income of associates and joint ventures

       —        —        —        165       —        —        —        165  

Gains (losses) on cash flow hedging instruments

       —        —        —        34,763       —        —        (22 )      34,741  

Losses on hedging instruments of net investments in foreign operations

       —        —        —        (186,708 )      —        —        —        (186,708 ) 

Insurance finance expenses

       —        —        —        (3,176,328 )      —        —        —        (3,176,328 ) 

Fair value changes of financial liabilities designated at fair value

through profit or loss due to own credit risk

       —        —        —        (5,514 )      —        —        —        (5,514 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total comprehensive income for the year

       —        —        —        (1,655,722 )      5,075,574       —        (13,958 )      3,405,894  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Transactions with shareholders

                  

Annual dividends paid to shareholders of the Parent Company

       —        —        —        —        (587,006 )      —        —        (587,006 ) 

Quarterly dividends paid to shareholders of the Parent Company

       —        —        —        —        (899,971 )      —        —        (899,971 ) 

Issuance of hybrid securities

       —        399,059       —        —        —        —        756,317       1,155,376  

Dividends on hybrid securities

       —        —        —        —        (199,800 )      —        (77,162 )      (276,962 ) 

Redemption of hybrid securities

       —        (349,284 )      —        —        —        —        (659,866 )      (1,009,150 ) 

Acquisition of treasury shares

       —        —        —        —        —        (820,000 )      —        (820,000 ) 

Disposal of treasury shares

       —        —        3,975       —        —        234,600       —        238,575  

Retirement of treasury shares

       —        —        —        —        (515,177 )      515,177       —        —   

Ownership changes in subsidiaries

       —        —        —        —        —        —        12,198       12,198  

Others

       —        —        (5,157 )      —        —        —        (34,806 )      (39,963 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total transactions with shareholders

       —        49,775       (1,182 )      —        (2,201,954 )      (70,223 )      (3,319 )      (2,226,903 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance as of December 31, 2024

     W 2,090,558     W 5,082,578     W 16,646,734     W 496,922     W 34,808,220     W (1,236,060 )    W 1,926,229     W 59,815,181  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The above consolidated statements of changes in equity should be read in conjunction with the accompanying notes.

 

4

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2024 and 2023

 

(in millions of Korean won)

 

     Notes      2024     2023  

Cash flows from operating activities

        

Profit for the year

       W 5,028,606     W 4,526,334  
     

 

 

    

 

 

  

Adjustment for non-cash items

        

Net losses (gains) on financial assets at fair value through profit or loss

         29,212       (1,793,351 ) 

Net losses on derivative financial instruments for hedging purposes

         168,387       53,073  

Provision for credit losses

         2,044,286       3,146,409  

Net losses on financial investments

         103,986       255,989  

Share of loss (profit) of associates and joint ventures

         16,884       (33,110 ) 

Depreciation and amortization expense

         916,295       865,927  

Other net losses on property and equipment/intangible assets

         145,164       131,270  

Share-based payments

         140,453       69,703  

Post-employment benefits

         177,481       155,720  

Net interest expense

         6,122       274,681  

Losses on foreign currency translation

         620,754       200,486  

Insurance finance income

         (10,922,966 )      (7,695,017 ) 

Reinsurance finance expense

         1,659,880       1,318,610  

Other expenses

         793,690       827,254  
     

 

 

    

 

 

  
        (4,100,372 )      (2,222,356 ) 
     

 

 

    

 

 

  

Changes in operating assets and liabilities

        

Financial asset at fair value through profit or loss

         (700,633 )      (6,247,689 ) 

Derivative financial instruments

         (207,969 )      (152,753 ) 

Loans measured at fair value through other comprehensive income

         (646,377 )      (252,695 ) 

Loans measured at amortized cost

         (27,515,988 )      (15,308,932 ) 

Current income tax assets

         (95,539 )      (39,627 ) 

Deferred income tax assets

         5,201       (84,148 ) 

Other assets

      39        1,393,446       (3,775,944 ) 

Financial liabilities at fair value through profit or loss

         (183,609 )      (1,467,780 ) 

Deposits

         23,821,056       12,195,807  

Current income tax liabilities

         385,385       (853,347 ) 

Deferred income tax liabilities

         367,748       245,859  

Other liabilities

         (4,948,829 )      9,967,626  

Insurance contract assets

         (46,550 )      (146,335 ) 

Reinsurance contract assets

         (1,498,923 )      (1,470,578 ) 

Insurance contract liabilities

         11,807,838       9,009,220  

Reinsurance contract liabilities

         49,018       37,217  

Investment contract liabilities

         1,106,677       148,937  
     

 

 

    

 

 

  
        3,091,952       1,804,838  
     

 

 

    

 

 

  

Net cash inflow from operating activities

         4,020,186       4,108,816  
     

 

 

    

 

 

  

(Continued)

 

5

KB Financial Group Inc. and Subsidiaries

Consolidated Statements of Cash Flows

Years Ended December 31, 2024 and 2023 (cont’d)

 

(in millions of Korean won)

 

     Notes      2024     2023  

Cash flows from investing activities

        

Net cash flows from derivative financial instruments for hedging purposes

         (44,552 )      (48,122 ) 

Disposal of financial asset at fair value through profit or loss

         15,648,112       12,389,938  

Acquisition of financial asset at fair value through profit or loss

         (16,365,119 )      (11,312,232 ) 

Disposal of financial investments

         45,225,323       43,472,217  

Acquisition of financial investments

         (47,328,121 )      (47,125,014 ) 

Disposal of investments in associates and joint ventures

         98,497       99,834  

Acquisition of investments in associates and joint ventures

         (339,469 )      (114,904 ) 

Disposal of property and equipment

         18,616       8,177  

Acquisition of property and equipment

         (337,178 )      (350,138 ) 

Disposal of investment property

         264,948       3,669  

Acquisition of investment property

         (88,756 )      (1,018,598 ) 

Disposal of intangible assets

         21,073       5,359  

Acquisition of intangible assets

         (289,731 )      (330,427 ) 

Net cash flows from changes in ownership of subsidiaries

         88,528       1,297,001  

Others

         (397,226 )      (496,252 ) 
     

 

 

    

 

 

  

Net cash outflow from investing activities

         (3,825,055 )      (3,519,492 ) 
     

 

 

    

 

 

  

Cash flows from financing activities

        

Net cash flows from derivative financial instruments for hedging purposes

         (216,883 )      (73,335 ) 

Net decrease in borrowings

         (4,358,474 )      (2,223,069 ) 

Increase in debentures

         86,031,647       83,777,490  

Decrease in debentures

         (80,848,086 )      (83,683,272 ) 

Increase in other payables to trust accounts

         89,900       2,333,656  

Dividends paid to shareholders of the Parent Company

         (1,486,978 )      (1,151,900 ) 

Issuance of hybrid securities

         399,059       598,552  

Redemption of hybrid securities

         (350,000 )      —   

Dividends paid on hybrid securities

         (199,800 )      (184,915 ) 

Acquisition of treasury shares

         (820,000 )      (571,745 ) 

Redemption of principal of lease liabilities

         (311,363 )      (235,052 ) 

Decrease in non-controlling interests

         115,292       721,101  

Others

         (28,151 )      (546,580 ) 
     

 

 

    

 

 

  

Net cash outflow from financing activities

         (1,983,837 )      (1,239,069 ) 
     

 

 

    

 

 

  

Effect of exchange rate changes on cash and cash equivalents

      39        570,985       (58,465 ) 
     

 

 

    

 

 

  

Net decrease in cash and cash equivalents

         (1,217,721 )      (708,210 ) 

Cash and cash equivalents at the beginning of the year

      39        25,826,588       26,534,798  
     

 

 

    

 

 

  

Cash and cash equivalents at the end of the year

      39      W 24,608,867     W 25,826,588  
     

 

 

    

 

 

  

The above consolidated statements of cash flows should be read in conjunction with the accompanying notes.

 

6