KB Financial Group retires treasury shares worth 1.2 trillion won to boost corporate value

[The Financial News] KB Financial Group announced on the 23rd that it retired 8.61 million treasury shares on the 15th and will complete the amended listing with the Korea Exchange (KRX) by the end of this month.
The shares retired this time are the additional treasury shares purchased after the previous retirement in May last year, and they have now been canceled in one batch. Based on the previous day's closing price of 134,700 won, the value is about 1.2 trillion won. This represents roughly 2.3% of the total number of shares outstanding.
The buyback and retirement of treasury shares is part of KB Financial Group's medium- to long-term shareholder return policy. The group has been expanding dividends while simultaneously buying back and canceling treasury shares, backed by a solid capital ratio. By reducing the number of shares in circulation, it aims to improve per-share earnings indicators and strengthen shareholder value.
An official at KB Financial Group stated, "We plan to continue buying back and retiring our own shares to further enhance shareholder value."
Meanwhile, KB Financial Group's plan to enhance corporate value is designed so that all capital exceeding a common equity Tier 1 (CET1) ratio of 13% at the end of the previous year is used for shareholder returns without any upper limit. In addition, any capital generated during the year that pushes the CET1 ratio above 13.5% is again allocated to shareholder returns. Because the group pays equal quarterly dividends based on the total annual dividend amount, continued share buybacks and cancellations will structurally increase dividends per share over time.

coddy@fnnews.com Ye Byung-jung Reporter