Greetings, everyone. I am Jerry Kang, Head of KBFG IR team. We will now begin the 2025 full year business results presentation. Thank you very much for participating in today's earnings release. We have here with us executives from the group, including CFO, Sang Rok Na; and first, our Group CFO, will cover 2025 full year business results. After that, we will have a Q&A session. I will now invite our group CFO to walk us through 2025 full year business results.

Greetings, everyone. I am KBFG CFO, Sang-Rok Na. Thank you very much for joining our 2025 full year business results presentation. Before proceeding with the business results, I'll briefly share some of our key performance highlights. 2025 was a year of unprecedented volatility in the financial market. As volatility in the exchange rate and market interest rates widened, the influence of external factors intensified, economic recovery was somewhat delayed and a challenging operating environment continued with asset quality pressures. On the other hand, as government policies materialize and discount factors where the domestic market became resolved partially, the capital market is gaining unprecedented momentum toward the KOSPI 5,000 era. In a situation where diverse variables and new trends are intertwined, KBFG with our stable portfolio and consistent risk management policies is absorbing external uncertainties and we are working hard to expand nonbanking earnings contribution and to shift to a business structure focused on the capital market. Added to these strategic efforts as a result of the fading away of sizable one-off effects, including 2024 ELS customer compensation cost, 2025 net profit posted KRW 5.8 trillion, a 15.1% increase Y-o-Y and proved our robust profit-generating capacity. On the other hand, today, the BOD resolved to approve a year-end cash dividend of KRW 1,605 per share, amounting to a total of KRW 575.5 billion. Accordingly, the 2025 total cash dividend amount stands at KRW 1,580 billion, an increase of approximately 32% compared to the previous year. The 2025 dividend per share, including previously paid quarterly dividends recorded a total of KRW 4,367, marking a significant increase of approximately 37.6% Y-o-Y. The total year-end cash dividend amount includes an additional KRW 240.5 billion on top of the existing 2025 quarterly uniform dividend amount. This reflects our efforts not only to meet the corporate…

Thank you very much for the presentation. We will now proceed to the Q&A session. [Operator Instructions]. We will take the first question. From HSBC, we have Jaewoong Won.

Thank you very much for such good results in this challenging environment and also for your concern about the shareholder returns. So looking at your results, it's like I feel I received your New Year present. So I have 2 questions. First is that in the fourth quarter, the year-end cash dividend was actually larger than what we expected. So the cash dividend payout ratio should have been at least 25%, but I think you gave much more than that for a high dividend company. So is there any special reason for that? And my second question is the size was really larger than I expected, and that was really surprising. So 2 rounds of KRW 600 billion, I think that's been paid down. So looking at your disclosure, it seems that you're doing it in 2 rounds. What is the reason you're doing it in 2 rounds instead of 1 consolidated round?

So while we are preparing the answer, please hold for a few seconds.

So thank you very much for your congratulations as well as for your questions. You asked for the reason why there was a significant expansion of the year-end dividends, as you have said, one of the first reasons was that at the end of the first half of 2025, when we announced the second round of shareholder return amount, it was a total of KRW 850 billion at the time. The size of the shareholder return was actually larger than what we had expected initially. And so we lagged earnings for distribution. And so unavoidably, about KRW 100 billion was deferred to early 2026. That was announced previously through our disclosures. And so we have used that KRW 190 billion. And afterwards, we have continuously gave a lot of thought into how to use that KRW 100 billion, whether to do a cash dividend or whether to do share buyback. And so starting from last half, various policies from the government came out related to revitalizing the capital market, and there was introduction of the separation tax on dividend income. And so we have been looking at various options in about the right dividend yield. And so also, given the quickly improving PBR improvement trends, we thought that there should be some changes to the mix of the means that we use for shareholder returns. And thirdly, recently, the performance of our share prices have been really strong. And so in consideration of this rise in the share prices, we believe that there was a need for adjustment of the dividend yield. And that is the reason why these 3 reasons were the reason why we have decided on this decision. And so added to the KRW 900 billion, KRW 50 billion has been added in the addition. So KRW…

We'll now receive the next question from Goldman Sachs Securities, Park Sinyoung, Center Director.

I'm Park Sinyoung from Goldman Sachs Securities. I have a question about the ROE target. So in your Value-up program, it says more than 10%. But previously, other peers have actually referred to their ROE target of 12%. And also in our case, already the nonbanking sector portfolio has become diversified. And this year's ROE is already reaching 11%. So going forward, what is your stance on a sustainable level of ROE? In addition, with your overseas business, the improvement in profitability, do you think this can actually help in terms of the ROE aspect? And what are the trends?

So please hold for a few seconds while we prepare the answer. Thank you.

So let me answer your question. Our mid- to long-term ROE target, we do believe that we have to upwardly adjust the target. In the case of last year, a lot of the discount factors for our share prices have been diffused and addressed. And so the valuation is going up. And so we need to also raise the value fundamentals at this point. So we are targeting ROE for more than 11% in the mid- to long term. And we do believe that the expansion of the leverage cannot be more than 10% as it has been done in the past. And so we do believe we have this task of raising the ROE target. But as we have noted, increased fee income, the increase in the noninterest income is very important for this. And also -- so we do believe that for the improvement of ROE, the improvement of the noninterest income is very important. And also recently, the profit generation by the nonbanking affiliates have actually coupled with the money move been very helpful. As you have mentioned, of course, in the case of the overseas business, any improvement in profitability will be very helpful as well. our KBI or [indiscernible] Bank, these overseas entities improvement in profit is actually becoming more visible, and this is very helpful.

It seems that we do not have any questions in the queue, so we will wait. We will take the next question. From Mirae Asset Securities, we have Tae Joon Jeong.

I am Jeong Tae Joon from Mirae Asset Securities. Thank you very much for the good performance. Regarding shareholder return, I think it is quite positive. And I think you gave us a range of 40% to 50%, and it seems 60%. So maybe it will surpass that after a couple of years. So I just wanted to check that scope.

We will answer that question as soon as possible. Please hold.

I will answer that question. Regarding our corporate value enhancement program in the beginning, when we made our announcement compared to our peer groups, we were different because actually, we did not give a shareholder return ratio at a certain percentage. I think what we committed ourselves to was when we have an excess of a CET1 ratio that we had promised that we will use all of that as resources for shareholder return. So as was mentioned in that commitment, it is very open for shareholder return. So we have a very flexible and open shareholder return policy. Thank you.

We have no further questions coming in. We'll wait for further questions. We'll receive the next question from Goldman Sachs Securities, Park Sinyoung.

I have one further follow-up question. With regards to your dividend policy, the separate taxation and also the capital reduction dividend, what kind of details can you share about these 2 topics?

Please hold while we prepare the answers.

So for these 2 issues, as I've already said, in order to establish ourselves as the most preferred dividend paying share stock, these are very important issues. And we have qualified for the separate taxation for the dividend income. And so starting from this year, the dividend that is being paid out, will be applied with this policy. And in the case of the capital reduction dividend, we have already made the preparations and we're nearing the completion of this preparation stage. But because it has not been fully finalized as of yet in the near future, we do believe that we'll be able to deliver good news in this regard. And so any changes in the mix of the dividend and the shareholder return policies, we will be making decisions that are beneficial for our shareholders and investors. Thank you.

Thank you very much. We have Cho Jihyun from JPMorgan.

I have a question about guidance for 2026 for different indicators, if possible, because regarding asset quality, I think you gave us a provisioning goal. And can you tell us about what is the NIM interest rate, credit cost, last year's impact that will lead to this year's loan growth. So can you tell us about productive finance effect and SG&A pressure, I think it will be heightened. So can you tell us about any factors for SG&A boost? Can you tell us about the quarterly performance trend? And regarding the financing needed for shareholder return, what is the trajectory of CET1 do you expect for different quarters?

Please hold and we will soon answer your questions.

Let me cover the bank NIM. For 2026, well, for 2025, our CFO already mentioned that. So for 2026, household loan is expected to be restricted, and we will need to shift quickly to corporate finance. So we need to expand productive finance. So companies will have portfolio diversification, new growth, high profits and having a sustainable future platform. So in this situation, we will have corporate loan centered growth, but we will refrain from excessive price competition. So for asset profitability, we are going to actually safeguard some of that. And for 2026, for low-cost deposit expansion or having rebalancing of high interest rate loans, we will do our best to have the best portfolio so that we can have strategic financing cost expansion so that funding cost expansion, so we can manage the NIM. So I think we had KRW 10 trillion of net deposit -- core deposit that grew, and we will have similar growth this year as well. And we cannot really give you an accurate target, but for the NIM, low to mid-single-digit level of NIM, I think we expect a gradual decline of NIM for 2026. And for our asset growth, well, for the household loans, we think there will be some limitations. There will be some government policies regarding debt management. So that is why on a yearly basis, I think for the bank loan growth, it will be around 5% more or less. And for household loans, we think it will be around 2% to 3%. And for corporate loans, it seems that like last year, about 6% to 7% level is what we are anticipating. In the case of corporate loans, well, we think that there will be more competition intensification for that. So I think that we are thinking of special ways to quickly move to more profitable areas. So we are going to have those as our growth access and have portfolio diversification and have SME productive finance expansion and have a focus on blue asset -- and so -- and SOHO as well. So I think that is the asset growth that we are planning.

I would like to add to the SG&A. And for this year, we have the education tax that will be increased. So there is a little bit of a more burden. So compared to 2025, we think it's inevitable that we will have SG&A growth. But we think it will be plus/minus 4% or 4% growth more or less. And I think on a recurring level, excluding the education tax increase, it will be around 2% that we will manage plus/minus. And then for CET1 ratio regarding the annual trajectory that we expect for 2025 from Q3 to end of the year, it actually went up. for last year at year-end, when we were managing the capital adequacy ratio, we believe that it should be at an appropriate level. It's because for this year, there will be active participation in productive finance. So we need asset growth based on that, and there is equity investment that will also go up as well. So taking all of these factors into consideration for the year-end CET1 ratio, we think it will be best for us to have it as high as possible for us to have asset growth and to have profitability. So we believe that there will be many variables such as FX and interest rate at the end of last year, but we were able to have a CET1 ratio that was hiked up with our efforts. And we think for this year, it will be a little bit different because there will be some similar movement, maybe a slight decline. And we think that it will not really move much. But with Q3, we believe that it will actually go up on an upward trajectory.

We don't have anybody waiting in the queue for questions. So we'll wait for a little while for further questions. So we'll receive the next question. The next question is from Daishin Securities, Park Hye-jin.

I'm Park Hye-jin from Daishin Securities. I also have 2 questions. First, this time around, ELS and LTV related, what was the amount of provisioning provision that you have set aside? And secondly, you said you're reviewing the taxation for dividend income. If you look at in 2026, the total increase rate of the cash dividend, it's about 25%. So the dividend payout ratio should be 25%. And so the increase rate should be about 10%, but I think you're meeting that requirement. So in 2026, do you also plan on another surprise dividend payout in the fourth quarter as well?

While we are preparing the answer, please hold for a little while.

So with regards to the LTV, the provisioning is KRW 69.7 billion. In the case of the ELS penalty, it's KRW 263.3 billion that has been reflected already. Let me add to it a little bit. With regards to the provisioning that has been set aside, we are receiving the views of the external legal counsel as well as the experts. And as has been reported by the media reports, our exposure to the penalty is the largest. However, given our earnings fundamentals and also the stance of the regulatory authorities, we are able to manage this issue without damaging our capacity. So there might be some adjustment of the amount itself. What I'd like to, however, note is that this penalty issue is something that will be completely diffused within the year 2026. And so when that issue disappears, there will be a significant rebound. That is for sure. And also with regard to separate taxation and the dividend income, so you also talked about the increased rate of the dividend payout ratio for 2026. So we have 27% dividend payout ratio, and that's based on the 2025 levels. We are actually, however, step-by-step making upward adjustments. And as we have already noted, we're going to maintain a flexible stance when it comes to the shareholder returns. And so the year-end 2026 dividend may also go up as well. There is a possibility of that. And so we also have considered the capital reduction dividends. All of this has been considered together to reach this conclusion.

We will hold in case we have more questions coming in. We have had a 40-minute earnings call till now, and we will hold. And if we do not have any additional questions, we will conclude today's business results presentation. If you have any further questions, please do not hesitate and contact our IR team, and we'll be more than happy to answer any questions you may have. It seems we do not have any further questions in the queue. With this, we will conclude our 2025 full year business results presentation. Thank you for your attention.