Exhibit 99.1

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Financial Statements

September 30, 2025 and 2024

(Unaudited)

KB Financial Group Inc. and Subsidiaries

 

		Page(s)
Report on Review of Condensed Consolidated Interim Financial Statements			1-2
Consolidated Interim Financial Statements
Consolidated Interim Statements of Financial Position			3
Consolidated Interim Statements of Comprehensive Income			4-5
Consolidated Interim Statements of Changes in Equity			6
Consolidated Interim Statements of Cash Flows			7-8
Notes to the Consolidated Interim Financial Statements			9-175

Report on Review of Condensed Consolidated Interim Financial Statements

(English Translation of a Report Originally Issued in Korean)

To the Shareholders and the Board of Directors of

KB Financial Group Inc.

Reviewed Financial Statements

We have reviewed the accompanying condensed consolidated interim financial statements of KB Financial Group Inc. and its subsidiaries (collectively referred to as the “Group”). These condensed consolidated interim financial statements consist of the consolidated interim statement of financial position of the Group as at September 30, 2025, and the related consolidated interim statements of comprehensive income for the three-month and nine-month periods ended September 30, 2025 and 2024, and consolidated interim statements of changes in equity and cash flows for the nine-month periods ended September 30, 2025 and 2024, and material accounting policy information and other selected explanatory notes, expressed in Korean Won.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”) No. 1034 Interim Financial Reporting, and for such internal control as management determines is necessary to enable the preparation of condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

We conducted our review in accordance with quarterly or semi-annual review standards established by the Securities and Futures Commission of the Republic of Korea. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Korean Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with Korean IFRS No. 1034 Interim Financial Reporting.

 

1

Other Matters

We have audited the consolidated statement of financial position of the Group as at December 31, 2024, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the year then ended, not presented herein, in accordance with Korean Standards on Auditing. We expressed an unqualified opinion on those financial statements in our audit report dated March 5, 2025. The consolidated statement of financial position as at December 31, 2024, presented herein for comparative purposes, is consistent, in all material respects, with the above audited statement of financial position as at December 31, 2024.

Review standards and their application in practice vary among countries. The procedures and practices used in the Republic of Korea to review such financial statements may differ from those generally accepted and applied in other countries.

/s/ Samil PricewaterhouseCoopers

Seoul, Korea

November 14, 2025

 

 

2

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Financial Position

September 30, 2025 and December 31, 2024

(in millions of Korean won)

 

		Notes				September 30, 2025 (Unaudited)				December 31, 2024
Assets
Cash and due from financial institutions			4,6,7,30			W	25,270,758			W	29,869,111
Financial assets at fair value through profit or loss			4,6,11				92,901,015				79,450,093
Derivative financial assets			4,6,8				7,104,334				11,730,767
Loans measured at amortized cost			4,6,9,10				486,519,741				472,071,840
Financial investments			4,6,11				132,056,076				131,009,464
Investments in associates and joint ventures							1,126,828				947,390
Insurance contract assets			29				362,133				276,191
Reinsurance contract assets			29				1,604,303				1,497,147
Property and equipment							5,136,837				5,390,015
Investment property							2,882,692				3,759,176
Intangible assets							1,783,831				1,966,684
Net defined benefit assets			18				284,531				258,500
Current income tax assets							367,390				339,855
Deferred income tax assets			12,25				195,123				278,824
Assets held for sale							251,937				136,838
Other assets			4,6				38,215,673				18,863,637
Total assets						W	796,063,202			W	757,845,532
Liabilities
Financial liabilities at fair value through profit or loss			4,6,13			W	10,344,311			W	10,720,231
Derivative financial liabilities			4,6,8				6,804,555				11,783,494
Deposits			4,6,14				448,711,993				435,687,897
Borrowings			4,6,15				68,790,018				68,077,012
Debentures			4,6,16				77,185,525				76,171,257
Insurance contract liabilities			29				59,014,074				55,863,701
Reinsurance contract liabilities			29				72,495				56,266
Provisions			17				862,025				927,632
Net defined benefit liabilities			18				89,425				100,187
Current income tax liabilities							748,196				530,720
Deferred income tax liabilities			12,25				1,592,468				1,682,292
Other liabilities			4,6				60,477,024				36,429,662
Total liabilities							734,692,109				698,030,351
Equity
Share capital							2,090,558				2,090,558
Hybrid securities							4,793,384				5,082,578
Capital surplus							16,623,244				16,646,734
Accumulated other comprehensive income			27				(450,598	)			496,922
Retained earnings							37,992,091				34,808,220
Treasury shares							(1,466,389	)			(1,236,060	)
Equity attributable to shareholders of the Parent Company			19				59,582,290				57,888,952
Non-controlling interests							1,788,803				1,926,229
Total equity							61,371,093				59,815,181
Total liabilities and equity						W	796,063,202			W	757,845,532

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

 

3

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Comprehensive Income

Three-Month and Nine-Month Periods Ended September 30, 2025 and 2024

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

 

		Notes		2025 (Unaudited)								2024 (Unaudited)
				Three months				Nine months				Three months				Nine months
Interest income				W	7,194,969			W	21,934,543			W	7,637,675			W	22,862,563
Interest income from financial instruments at fair value through other comprehensive income and amortized cost					6,826,223				20,831,343				7,267,464				21,740,172
Interest income from financial instruments at fair value through profit or loss					359,875				1,075,082				362,483				1,099,071
Insurance finance interest income					8,871				28,118				7,728				23,320
Interest expense					(3,858,787	)			(12,229,670	)			(4,450,130	)			(13,278,780	)
Interest expense					(3,485,314	)			(11,100,843	)			(4,082,095	)			(12,161,452	)
Insurance finance interest expense					(373,473	)			(1,128,827	)			(368,035	)			(1,117,328	)
Net interest income		5,20			3,336,182				9,704,873				3,187,545				9,583,783
Fee and commission income					1,418,823				4,196,022				1,342,678				4,069,582
Fee and commission expense					(432,426	)			(1,243,641	)			(399,974	)			(1,217,150	)
Net fee and commission income		5,21			986,397				2,952,381				942,704				2,852,432
Insurance income					3,143,341				9,287,755				2,913,077				8,490,605
Insurance income					2,941,450				8,676,712				2,783,901				8,222,722
Reinsurance income					201,891				611,043				129,176				267,883
Insurance expense					(2,820,148	)			(8,114,673	)			(2,553,855	)			(7,096,315	)
Insurance service expense					(2,608,011	)			(7,468,912	)			(2,334,278	)			(6,438,146	)
Reinsurance expense					(212,137	)			(645,761	)			(219,577	)			(658,169	)
Net insurance income		5,29			323,193				1,173,082				359,222				1,394,290
Net gains on financial instruments at fair value through profit or loss		5,22			450,612				2,562,975				902,023				1,472,733
Other insurance finance expenses		5,29			(279,426	)			(692,717	)			16,471				(353,183	)
Net other operating expenses		5,23			(465,013	)			(2,256,681	)			(893,719	)			(1,584,287	)
General and administrative expenses		5,18,24			(1,652,463	)			(5,007,724	)			(1,650,799	)			(4,872,926	)
Operating income before provision for credit losses		5			2,699,482				8,436,189				2,863,447				8,492,842
Provision for credit losses		5,7,9,10,17			(364,492	)			(1,675,200	)			(498,055	)			(1,479,143	)
Net operating income		5			2,334,990				6,760,989				2,365,392				7,013,699
Share of profit (loss) of investments in associates and joint ventures		5			5,413				15,674				2,770				657
Net other non-operating income (expenses)		5			(78,970	)			134,517				(76,170	)			(955,038	)
Net non-operating income (expenses)					(73,557	)			150,191				(73,400	)			(954,381	)
Profit before income tax expense		5			2,261,433				6,911,180				2,291,992				6,059,318
Income tax expense		5,25			(606,205	)			(1,809,250	)			(690,181	)			(1,690,540	)
Profit for the period		5			1,655,228				5,101,930				1,601,811				4,368,778

(Continued)

 

4

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Comprehensive Income

Three-Month and Nine-Month Periods Ended September 30, 2025 and 2024 (cont’d)

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

 

		Notes				2025 (Unaudited)								2024 (Unaudited)
						Three months				Nine months				Three months				Nine months
Items that will not be reclassified to profit or loss:
Remeasurements of net defined benefit liabilities						W	20,773				19,983			W	5,330				17,081
Gains(losses) on equity securities at fair value through other comprehensive income							(93,758	)			119,525				19,540				(223,395	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk							1,391				(9,316	)			2,565				(8,318	)
							(71,594	)			130,192				27,435				(214,632	)
Items that may be reclassified subsequently to profit or loss:
Currency translation differences							163,891				(187,662	)			(138,222	)			144,192
Gains(losses) on debt securities at fair value through other comprehensive income							(432,281	)			(89,532	)			1,378,954				1,281,217
Share of other comprehensive income (loss) of associates and joint ventures							5,865				3,537				362				276
Gains (losses) on cash flow hedging instruments			8				(33,499	)			(63,774	)			36,602				5,420
Gains (losses) on hedging instruments of net investments in foreign operations			8				(54,036	)			72,958				74,053				(17,166	)
Insurance finance income(expense)			29				253,968				(817,710	)			(1,555,997	)			(2,825,495	)
							(96,092	)			(1,082,183	)			(204,248	)			(1,411,556	)
Other comprehensive income (loss) for the period, net of tax							(167,686	)			(951,991	)			(176,813	)			(1,626,188	)
Total comprehensive income (loss) for the period						W	1,487,542			W	4,149,939			W	1,424,998			W	2,742,590
Profit(loss) attributable to:			5
Shareholders of the Parent Company						W	1,686,040			W	5,121,733			W	1,619,718			W	4,394,149
Non-controlling interests							(30,812	)			(19,803	)			(17,907	)			(25,371	)
						W	1,655,228			W	5,101,930			W	1,601,811			W	4,368,778
Total comprehensive income (loss) for the period attributable to:
Shareholders of the Parent Company						W	1,513,307			W	4,170,650			W	1,435,465			W	2,748,298
Non-controlling interests							(25,765	)			(20,711	)			(10,467	)			(5,708	)
						W	1,487,542			W	4,149,939			W	1,424,998			W	2,742,590
Earnings per share (in Korean won)			28
Basic earnings per share						W	4,498			W	13,531			W	4,144			W	11,165
Diluted earnings per share							4,458				13,403				4,105				11,031

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

 

5

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Changes in Equity

Nine-Month Periods Ended September 30, 2025 and 2024

(in millions of Korean won)

 

		Equity attributable to shareholders of the Parent Company
		Share capital				Hybrid securities				Capital surplus				Accumulated other comprehensive income				Retained earnings				Treasury shares				Non-controlling interests				Total equity
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 period																															—
Profit for the period			—				—				—				—				4,394,149				—				(25,371	)			4,368,778
Remeasurements of net defined benefit liabilities			—				—				—				16,705				—				—				376				17,081
Currency translation differences			—				—				—				126,026				—				—				18,166				144,192
Gains (losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings			—				—				—				1,059,514				(2,796	)			—				1,104				1,057,822
Share of other comprehensive income of associates and joint ventures			—				—				—				276				—				—				—				276
Losses on cash flow hedging instruments			—				—				—				5,403				—				—				17				5,420
Losses on hedging instruments of net investments in foreign operations			—				—				—				(17,166	)			—				—				—				(17,166	)
Insurance finance expenses			—				—				—				(2,825,495	)			—				—				—				(2,825,495	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk			—				—				—				(8,318	)			—				—				—				(8,318	)
Total comprehensive income for the period			—				—				—				(1,643,055	)			4,391,353				—				(5,708	)			2,742,590
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			—				—				—				—				(600,085	)			—				—				(600,085	)
Issuance of hybrid securities			—				399,059				—				—				—				—				756,317				1,155,376
Dividends on hybrid securities			—				—				—				—				(150,164	)			—				(77,162	)			(227,326	)
Redemption of hybrid securities			—				(349,309	)			—				—				—				—				(659,867	)			(1,009,176	)
Acquisition of treasury shares			—				—				—				—				—				(490,679	)			—				(490,679	)
Disposal of treasury shares			—				—				3,975				—				—				234,600				—				238,575
Retirement of treasury shares			—				—				—				—				(515,177	)			515,177				—				—
Ownership changes in subsidiaries			—				—				—				—				—				—				15,445				15,445
Others			—				—				(33,991	)			—				—				—				(11,014	)			(45,005	)
Total transactions with shareholders			—				49,750				(30,016	)			—				(1,852,432	)			259,098				23,719				(1,549,881	)
Balance as of September 30, 2024 (Unaudited)		W	2,090,558			W	5,082,553			W	16,617,900			W	509,589			W	34,473,521			W	(906,739	)		W	1,961,517			W	59,828,899
Balance as of January 1, 2025		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
Comprehensive income for the period
Profit for the period			—				—				—				—				5,121,733				—				(19,803	)			5,101,930
Remeasurements of net defined benefit liabilities			—				—				—				20,402				—				—				(419	)			19,983
Currency translation differences			—				—				—				(187,312	)			—				—				(350	)			(187,662	)
Gains(losses) on financial instruments at fair value through other comprehensive income and transfer to retained earnings			—				—				—				33,622				(3,563	)			—				(66	)			29,993
Share of other comprehensive income of associates and joint ventures			—				—				—				3,537				—				—				—				3,537
Losses on cash flow hedging instruments			—				—				—				(63,701	)			—				—				(73	)			(63,774	)
Gains on hedging instruments of net investments in foreign operations			—				—				—				72,958				—				—				—				72,958
Insurance finance expenses			—				—				—				(817,710	)			—				—				—				(817,710	)
Fair value changes of financial liabilities designated at fair value through profit or loss due to own credit risk			—				—				—				(9,316	)			—				—				—				(9,316	)
Total comprehensive income for the period			—				—				—				(947,520	)			5,118,170				—				(20,711	)			4,149,939
Transactions with shareholders
Annual dividends paid to shareholders of the Parent Company			—				—				—				—				(298,285	)			—				—				(298,285	)
Quarterly dividends paid to shareholders of the Parent Company			—				—				—				—				(668,990	)			—				—				(668,990	)
Issuance of hybrid securities			—				404,028				—				—				—				—				—				404,028
Dividends on hybrid securities			—				—				—				—				(154,322	)			—				(94,095	)			(248,417	)
Redemption of hybrid securities			—				(693,222	)			—				—				—				—				—				(693,222	)
Acquisition of treasury shares			—				—				—				—				—				(1,044,851	)			—				(1,044,851	)
Retirement of treasury shares			—				—				—				—				(814,522	)			814,522				—				—
Ownership changes in subsidiaries			—				—				(10,401	)			—				—				—				(24,511	)			(34,912	)
Others			—				—				(13,089	)			—				1,820				—				1,891				(9,378	)
Total transactions with shareholders			—				(289,194	)			(23,490	)			—				(1,934,299	)			(230,329	)			(116,715	)			(2,594,027	)
Balance as of September 30, 2025 (Unaudited)		W	2,090,558			W	4,793,384			W	16,623,244			W	(450,598	)		W	37,992,091			W	(1,466,389	)		W	1,788,803			W	61,371,093

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

 

6

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Cash Flows

Nine-Month Periods Ended September 30, 2025 and 2024

(in millions of Korean won)

 

		Notes				2025 (Unaudited)				2024 (Unaudited)
Cash flows from operating activities
Profit for the period						W	5,101,930			W	4,368,778
Adjustment for non-cash items
Net gains on financial assets at fair value through profit or loss							(1,482,971	)			(622,772	)
Net gains (losses) on derivative financial instruments for hedging purposes							(14,629	)			80,376
Provision for credit losses							1,675,200				1,479,143
Net gains (losses) on financial investments							(151,299	)			33,471
Share of profit (losses) of associates and joint ventures							(15,674	)			(657	)
Depreciation and amortization expense							675,175				675,950
Other net gains (losses) on property and equipment/intangible assets							(192,929	)			114,330
Share-based payments							111,102				113,370
Post-employment benefits							142,908				134,553
Net interest expense (income)							241,897				(22,888	)
Losses on foreign currency translation							630,967				320,320
Insurance finance income							(8,247,289	)			(8,306,230	)
Reinsurance finance expense							886,881				1,175,812
Other expenses							669,212				600,039
							(5,071,449	)			(4,225,183	)
Changes in operating assets and liabilities
Financial asset at fair value through profit or loss							(9,729,306	)			1,113,034
Derivative financial instruments							31,760				(151,155	)
Loans measured at fair value through other comprehensive income							(193,397	)			(294,656	)
Loans measured at amortized cost							(17,154,927	)			(22,299,914	)
Current income tax assets							(27,535	)			(70,840	)
Deferred income tax assets							78,989				122,322
Other assets							(21,213,888	)			(6,898,416	)
Financial liabilities at fair value through profit or loss							(1,023,966	)			(989,319	)
Deposits							12,749,087				16,218,279
Current income tax liabilities							217,477				262,835
Deferred income tax liabilities							187,387				414,743
Other liabilities							21,946,011				9,581,049
Insurance contract assets							(85,942	)			(83,116	)
Reinsurance contract assets							(995,670	)			(1,032,768	)
Insurance contract liabilities							10,280,984				9,077,250
Reinsurance contract liabilities							23,875				32,113
Investment contract liabilities							1,677,952				(138,234	)
							(3,231,109	)			4,863,207
Net cash inflow(outflow) from operating activities							(3,200,628	)			5,006,802

(Continued)

 

7

KB Financial Group Inc. and Subsidiaries

Consolidated Interim Statements of Cash Flows

Nine-Month Periods Ended September 30, 2025 and 2024 (cont’d)

(in millions of Korean won)

 

		Notes				2025 (Unaudited)				2024 (Unaudited)
Cash flows from investing activities
Net cash flows from derivative financial instruments for hedging purposes							(100,143	)			(33,619	)
Disposal of financial asset at fair value through profit or loss							17,414,755				6,932,112
Acquisition of financial asset at fair value through profit or loss							(19,698,102	)			(7,185,528	)
Disposal of financial investments							42,363,071				28,468,338
Acquisition of financial investments							(42,576,141	)			(31,072,493	)
Disposal of investments in associates and joint ventures							221,558				82,274
Acquisition of investments in associates and joint ventures							(385,240	)			(93,485	)
Disposal of property and equipment							62,314				4,856
Acquisition of property and equipment							(219,349	)			(175,147	)
Disposal of investment property							763,052				—
Acquisition of investment property							(183,504	)			—
Disposal of intangible assets							9,635				13,046
Acquisition of intangible assets							(116,847	)			(184,883	)
Net cash flows from changes in ownership of subsidiaries							1,165,169				22,887
Others							(23,431	)			(211,395	)
Net cash outflow from investing activities							(1,303,203	)			(3,433,037	)
Cash flows from financing activities
Net cash flows from derivative financial instruments for Hedging purposes							(199,200	)			(199,198	)
Net Increase (decrease) in borrowings							1,707,129				(5,768,403	)
Increase in debentures							48,223,497				32,062,925
Decrease in debentures							(46,951,751	)			(30,104,715	)
Increase in other payables to trust accounts							1,236,046				544,993
Dividends paid							(967,275	)			(1,187,092	)
Issuance of hybrid securities							404,028				399,059
Redemption of hybrid securities							(695,000	)			(349,309	)
Dividends paid on hybrid securities							(154,322	)			(150,164	)
Acquisition of treasury shares							(1,044,851	)			(490,679	)
Redemption of principal elements of lease payments							(274,810	)			(238,543	)
Decrease(increase) in non-controlling interests							(95,270	)			194,331
Others							(275,331	)			(172,091	)
Net cash inflow (outflow) from financing activities							912,890				(5,458,886	)
Effect of exchange rate changes on cash and cash equivalents							(132,742	)			174,979
Net decrease in cash and cash equivalents							(3,723,683	)			(3,710,142	)
Cash and cash equivalents at the beginning of the period			30				24,608,867				25,826,588
Cash and cash equivalents at the end of the period			30			W	20,885,184				22,116,446

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

 

8

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

1. The Parent Company

KB Financial Group Inc. (the “Parent Company”) was incorporated on September 29, 2008, under the Financial Holding Companies Act of Korea. KB Financial Group Inc. and its subsidiaries (the “Group”) derive substantially all of their revenue and income from providing a broad range of banking and related financial services to consumers and corporations. The Parent Company’s main business purpose is to control subsidiaries that engage in the financial business or subsidiaries closely related to the financial business through the stock ownership. The Parent Company’s headquarter is located at 26, Gukjegeumyung-ro 8-gil, Yeongdeungpo-gu, Seoul. In 2011, Kookmin Bank spun off its credit card business segment and established a new separate credit card company, KB Kookmin Card Co., Ltd. and KB Investment & Securities Co., Ltd. merged with KB Futures Co., Ltd. The Group established KB Savings Bank Co., Ltd. in January 2012, acquired Yehansoul Savings Bank Co., Ltd. in September 2013, and KB Savings Bank Co., Ltd. merged with Yehansoul Savings Bank Co., Ltd. in January 2014. In March 2014, the Group acquired Woori Financial Co., Ltd. and changed the name to KB Capital Co., Ltd. Meanwhile, the Group included LIG Insurance Co., Ltd. as an associate and changed the name to KB Insurance Co., Ltd. in September 2015, and KB Insurance Co., Ltd. became one of the subsidiaries through a tender offer in May 2017. Also, the Group included Hyundai Securities Co., Ltd. as an associate in September 2016 and included as a subsidiary in October 2016 by comprehensive exchange of shares. Hyundai Securities Co., Ltd. merged with KB Investment & Securities Co., Ltd. in December 2016 and changed its name to KB Securities Co., Ltd. in January 2017. In August 2020, the Group acquired Prudential Life Insurance Company of Korea Ltd. which was classified as a subsidiary and the name was changed to KB Life Insurance Co., Ltd. in December 2022. Then in January 2023, it merged with another existing KB Life Insurance Co., Ltd. The Parent Company sold 100% shares of KB Credit Information Co., Ltd. to KB Kookmin Card Co., Ltd. on September 30, 2023.

The Parent Company’s share capital as of September 30, 2025, is W 2,090,558 million. The Parent Company has been listed on the Korea Exchange (“KRX”) since October 10, 2008, and on the New York Stock Exchange (“NYSE”) for its American Depositary Shares (“ADS”) since September 29, 2008. Number of shares authorized in its Articles of Incorporation is 1,000 million.

 

9

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2. Basis of Preparation

2.1 Application of Korean IFRS

The Group maintains its accounting records in Korean won and prepares statutory consolidated financial statements in the Korean language (Hangul) in accordance with International Financial Reporting Standards as adopted by the Republic of Korea (“Korean IFRS”). The accompanying consolidated financial statements have been translated into English from the Korean language consolidated financial statements.

The consolidated financial statements of the Group have been prepared in accordance with Korean IFRS. Korean IFRS are the standards and related interpretations issued by the International Accounting Standards Board (“IASB”) that have been adopted by the Republic of Korea.

The preparation of the consolidated financial statements requires the use of certain critical accounting estimates. Management also needs to exercise judgment in applying the Group’s accounting policies. The areas that require a more complex and higher level of judgment or areas that require significant assumptions and estimations are disclosed in Note 2.4.

The Group’s condensed consolidated interim financial statements for the nine-month period ended September 30, 2025, have been prepared in accordance with Korean IFRS No.1034 Interim Financial Reporting and contain less information than is required in annual consolidated financial statements. Selected explanatory notes include descriptions of transactions or events that are significant in understanding change in financial position and financial performance of the Group since the end of the previous annual reporting period. These condensed consolidated interim financial statements have been prepared in accordance with Korean IFRS which is effective or early adopted as of September 30, 2025.

2.1.1 The Group has applied the following new and amended standards for the first time for its annual reporting period commencing January 1, 2025.

- Amendment of Korean IFRS No.1021 “The Effects of Changes in Foreign Exchange Rates” and Korean IFRS No.1101 “First-time Adoption of International Financial Reporting Standards”—Lack of exchangeability

The amendments require the Group to determine a spot exchange rate when exchangeability is lacking, and to disclose information on the nature and financial effects of the currency not being exchangeable into the other currency, the spot exchange rate(s) used, the estimation process, and the risks to which the Group is exposed. These amendments do not have a significant impact on the financial statements.

 

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2.1.2 The following are the accounting standards that have been established or announced but have not yet been implemented, which the Group has not applied

- Amendment of Korean IFRS No.1109 “Financial Instruments” and No.1107 “Financial Instruments”

The amendments respond to recent questions arising in practice. This amendment will be applied to the financial statements for the accounting year beginning on or after January 1, 2026. These amendments do not have a significant impact on the financial statements.

 

-

clarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;

 

-

clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;

 

-

add new disclosures for certain instruments with contractual terms that can change cash flows

 

-

update the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).

- Korean IFRS Accounting Standards Annual Improvements Volume 11

Korean IFRS Accounting Standards Annual Improvements Volume 11 will be effective for annual reporting periods beginning on or after January 1, 2026. These amendments do not have a significant impact on the financial statements.

 

•

Korean IFRS No.1101 “First-time adoption of International Financial Reporting Standards”: Hedge accounting by a first-time adopter

 

•

Korean IFRS No.1107 “Financial Instruments: Disclosures”: Gain or loss on derecognition, Application guidance

 

•

Korean IFRS No.1109 “Financial Instruments”: Derecognition of lease liabilities, Definition of transaction price

 

•

Korean IFRS No.1110 “Consolidated Financial Statements”: Determination of a ‘de facto agent’

 

•

Korean IFRS Bo.1007 “Statement of Cash Flows”: Cost method

2.1.3 Restatement of financial statements for the nine-month period ended September 30, 2024 for the application of Insurance Contract accounting policy changes

In applying K-IFRS No. 1117, the Group has developed and applied its own accounting policies for areas where accounting treatment is not clearly defined. In order to provide more reliable and relevant information, the Group has changed some of these policies during the year ended December 31, 2024, and has retrospectively applied them to each prior reporting period presented in accordance with Korean IFRS No. 1008, “Accounting Policies, Changes in Accounting Estimates, and Errors”.

There is no effect on the statement of cash flows due to the change in accounting policy. The effects of applying the changes in accounting policies on the comprehensive income statement for the nine-month period ended September 30, 2024, and the financial position as of December 31, 2023, are as follows:

 

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KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2.1.3.1 The condensed consolidated statement of comprehensive income for the nine-month period ended September 30, 2024

 

(In millions of Korean won)		Before the effects of change in accounting policy				After the effects of change in accounting policy				Net increase (decrease)
Interest income		W	9,522,689			W	9,583,783			W	61,094
Insurance finance interest income			24,092				23,320				(772	)
Insurance finance interest expense			(1,179,194	)			(1,117,328	)			61,866
Net insurance income			1,372,729				1,394,290				21,561
Insurance income			8,479,376				8,490,605				11,229
Insurance income			8,211,493				8,222,722				11,229
Insurance expense			(7,106,647	)			(7,096,315	)			10,332
Insurance service expense			(6,438,682	)			(6,438,146	)			536
Reinsurance expense			(667,965	)			(658,169	)			9,796
Other insurance finance expenses			(268,979	)			(353,183	)			(84,204	)
Net operating income			7,015,248				7,013,699				(1,549	)
Net non-operating expenses			(954,381	)			(954,381	)			—
Profit before income tax expense			6,060,867				6,059,318				(1,549	)
Income tax expense			(1,690,949	)			(1,690,540	)			409
Profit for the period			4,369,918				4,368,778				(1,140	)
Other comprehensive income (loss), net of tax			(1,783,331	)			(1,626,188	)			157,143
Net Financial Income (Expense) of Insurance Contract Assets (Liabilities)			(2,982,638	)			(2,825,495	)			157,143
Total comprehensive income for the period		W	2,586,587			W	2,742,590			W	156,003

 

12

KB Financial Group Inc. and Subsidiaries

Notes to the Consolidated Interim Financial Statements

September 30, 2025 and 2024 (Unaudited), and December 31, 2024

 

2.1.3.2 The condensed consolidated statements of financial position as of December 31, 2023

 

(In millions of Korean won)		Before the effects of change in accounting policy				After the effects of change in accounting policy				Net increase (decrease)
Reinsurance contract assets		W	1,655,168			W	1,642,432			W	(12,736	)
Total assets			715,738,152				715,725,416				(12,736	)
Insurance contract liabilities			50,308,552				50,617,990				309,438
Deferred income tax liabilities			2,179,966				2,094,912				(85,054	)
Total liabilities			656,864,842				657,089,226				224,384
Accumulated other comprehensive income (loss)			2,295,165				2,152,644				(142,521	)
Retained earnings			32,029,199				31,934,600				(94,599	)
Total equity			58,873,310				58,636,190				(237,120	)
Total liabilities and equity		W	715,738,152			W	715,725,416			W	(12,736	)

2.2 Measurement Basis

The consolidated financial statements have been prepared based on the historical cost accounting model unless otherwise specified.

2.3 Functional and Presentation Currency

Items included in the financial statements of each entity of the Group are measured using the currency of the primary economic environment in which the entity operates (“functional currency”). The consolidated financial statements are presented in Korean won, which is the Parent Company‘s functional and presentation currency.

2.4 Critical Accounting Estimates

The Group applies accounting policies and uses judgements, accounting estimates and assumptions that may have a significant impact on the assets (liabilities) and incomes (expenses). Management’s estimates of outcomes may differ from actual outcomes if management’s estimates and assumptions based on management’s best judgment at the reporting date are different from the actual environment.

Estimates and underlying assumptions are continually evaluated, and changes in accounting estimates are recognized in the period in which the estimates are changed and in any future periods affected.

Uncertainties in estimates and assumptions with significant risks used in the preparation of these condensed consolidated interim financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2024.

3. Material Accounting Policies

The material accounting policies and calculation methods applied in the preparation of these consolidated interim financial statements are the same as those applied to the consolidated financial statements for the year ended December 31, 2024, except for the impact of changes due to adopting new and amended standards and interpretations described in Note 2.1 and below paragraph.

 

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