KB Financial Group has become the first Korean financial holding company to surpass a market capitalization of 60 trillion won ($41.55 billion), with its price-to-book ratio rising above 1 — a symbolic milestone for a banking sector long viewed as undervalued.
The stock closed Wednesday at 164,500 won, up 5.79 percent from the previous session, lifting its market cap to 61.33 trillion won. It extended gains Thursday, trading at 166,000 won as of noon after touching an intraday high of 167,900 won.
Shares have surged 32.08 percent year to date and have more than doubled from 69,300 won on April 9.
The rally pushed KB Financial’s PBR above 1, meaning its market value now exceeds its net asset value — a level widely seen as a benchmark for full asset recognition by the market. It is the only one among the four major financial holding companies to reach that threshold. As of Thursday, Shinhan Financial’s PBR stood at 0.88, followed by 0.81 for Woori Financial and 0.79 for Hana Financial.
Strong earnings and aggressive shareholder returns have underpinned the stock’s performance.
KB Financial posted a record net profit of over 5.8 trillion won last year, the highest among the country’s major financial groups. A balanced portfolio — anchored by its flagship banking unit and supported by insurance, securities and credit card operations — helped drive the result.
Total annual shareholder returns, including dividends and share buybacks, reached 3.06 trillion won, making it the first Korean financial firm to exceed the 3 trillion won mark.
“KB Financial’s PBR crossing 1 reflects structural changes in the banking sector,” said Jo Ah-hae, a researcher at Meritz Securities. “Other financial groups are also working to lift returns on equity through cost discipline, stronger non-bank businesses and expanded shareholder returns, which could support further revaluation.”
Bank stocks have broadly rallied this year on solid earnings and larger payout plans. Year-to-date gains for Shinhan, Hana and Woori have all exceeded 30 percent.
silverstar@heraldcorp.com
