Kim Do-ha: Thank you very much for the opportunity. It is quite overlapping with a previous question, in the earlier part of the year. So, the treasury stocks, how are you intending to calculate the shareholder buyback that isn’t linked to the previous year’s performance or this year’s performance . So I think, based on your answer, we can be able to anticipate, what the guidance will be, going forward for this year’s dividend. So thank you very much for your answer in Advance.
Jae Kwan Kim: Well, this question, I think, this is the same question as the first question. So let me say that the answer is quite the same as the first question.
Operator: We will take the next question from SK Securities.
SK Securities: Thank you very much for the opportunity. It might be a very narrow question, but you can see the K-ICS ratio Well, it seems that it has gone up, for the insurance. So can you elaborate more about the re the reasons behind that?
Jae Kwan Kim: Well, the K-ICS ratio changes each quarter and currently, well, we have been, actually been affected by interest rates. So for the changes in the quarter, it is because of the interest rates. So that will be a large reason behind that.
Operator: So next question, Mr. Cho Jihyun from JP Morgan.
Cho Jihyun: Thank you very much for this opportunity. I have two questions. In 2024 NIM and also with regards to your credit cost growth, if you have any guidance, can you share that also with your exemptions? And secondly, the US, real estate exposure, I think a lot of investors have questions about that. With regards to overseas real estate, at the group level and, if you can provide a breakdown by subsidiaries, can you provide with a rough assumption of the exposure? And going forward, what kind of what level of risk do you foresee? And with regards to K-ICS, I do believe that you have sufficient provision regarding K-ICS, but with regards to overseas real estate, do you have provisions for overseas real estate also included in that amount?
Operator: So while we are preparing the answer, please wait for a few seconds. Thank you.
Jae Kwan Kim: Sir, the US commercial real estate, let me get that question first. We have about a KRW1 trillion of exposure, and a large part of that is held by the bank and the amount held by the other subsidiaries is not that large. In the case of the bank, it has a large exposure, but it had a conservatively invested. So, senior debt takes up a large portion. In the case of United States and Europe, we have commercial real estates there and office and multifamily and, quasi residential real estate is, the bulk of our holding and 0.2 percent, default rate in payout ratio. And you talked about provisioning, but in Q4, I said that we have conservative provisioned against the real estate and for the overseas commercial real estate as well.
We have even more conservative provisioning for such, real estate and for funds as well it is a PL asset and, so we have taken impaired losses in end of 2023. So the overall portfolio is mostly senior debt, and So there is a significant impact, and we have sufficient provisioning given these factors. So the overseas of commercial real estate for KB Financial Group, we don’t see much impact going forward because of these reasons. Also the other questions regarding NIM? In the case of, NIM, we have very high share of low-cost deposit and in a high interest rate regime, this leads us to meet in a high NIM level, in 2023, and in 2024 earlier as well. We have maturing a high interest rate time deposit, this can serve as a factor. And also, KB, the share of, the fixed interest rate, deposit is quite high and also starting from last year, the asset duration is being expanded.
So even if the interest rate goes down in the second half, we will be able to engage in flexible, funding portfolio management and so in 2024, we will amend the NIM so that it will be slightly lower than last year. And with regard to loan growth, our growth is focused mostly on corporate loan, and, it’s going to be maintained at the nominal GDP growth level.
Operator: It seems that there are no other questions in the queue. Now, so we shall hold. It seems that we have received about 7 questions in a short amount of time and cover different areas. If you did not get a chance to ask questions, please contact our IR team, and we would be more than happy to answer them and it seems that there are no questions in the queue now. Since we do not seem to be having any more questions for now in the queue, we shall wait a little longer. And if there are no other questions coming in, we will conclude our earnings presentation. Well, we will conclude our Q and A session, and we will conclude our business presentation for full year 2023. Thank you very much.
