First, if you look at the graph on the left, you can see that the group’s CET1 ratio as of 2023 year end posted 13.58%, a 34 BP improvement YTD. Looking at the factors behind major movements, additional factors, including group’s solid net profit growth and OCI movement, each contributed by around 144 bps and 24 bps, respectively, to push up the CET1 ratio. RWA, which increased by KRW19.1 trillion YTD and the dividends share buyback and cancellation, which recognized in 2023, each contributed to 80 bps and 54 bps drop in CET1 ratio, respectively. Next, 2023 EPS posted approximately 11,581 and on the back of sound income growth and share buyback and cancellation effect went up approximately 12.1% Y-o-Y. In addition, the BPS posted approximately 148,241 and like the EPS thanks to our consistent efforts to enhance shareholder value including active share buyback and cancellation improved by around 9.3% Y-o-Y.
From this page, I would like to cover KBFG’s EST management for shared growth, fulfilling social responsibilities among our group’s core management strategies. In order for us to create a sustainable future in society, which is the ultimate goal that we want to achieve through ESG Management, have been working hard for social contribution, utilizing our core competency in finance and also engaging in social contribution activities in a balanced and accelerated manner. 2023’s representative performance results include newly providing around KRW7.14 trillion of social finance, utilizing our core competence in finance, including financial products for the under privilege low interest for refinancing loans and savings program for youth. In the non-financial side, we contributed around KRW300 billion for social contribution and local community investment, including supporting the under privileged and small businesses and activities to improve social infrastructure.
In addition, we provided around 13,500 cases of free consulting to small businesses and through the KB Good Job Fair, we connected around 6190 jobs to job seekers and actively engaged in divers, social contribution, activities, and programs. We will not be complacent with these results, but also focus our efforts for other social contribution activities, these, as well. First related to the Bank wide Public Social Contribution Program, which was announced late last year, we plan to support KRW372.1 billion, the largest among all participating banks, and we plan to expediate the completion of interest cashback implementation within Q1 this year and plan to consecutively support small business owners and the underprivileged through our voluntary program.
Apart from this, we plan to increase different support programs so that the self-employed can overcome their economic difficulties, expand programs to reduce rate for the underprivileged and sole proprietors and expand its guaranteed loans through guarantee institution special contributions and in particular, order to resolve the low fertility program, we contributed a total of KRW75 billion to expanding elementary school after school care school child care programs until 2022 and from 2023, we have been additionally supporting a total of KRW50 billion related to increasing after school and other child care related institutions. KBFG pledges that we will engage in a higher level of ESG management, which benefits its role as a leading financial group that will grow with the people through consistently implementing diverse social contribution finance programs that can provide realistic benefits that can be felt firsthand.
Please refer to them. Next page is just to cover details regarding the business results I have covered so far. With this, I will conclude 2023 KBFG Business Results Presentation. Thank you for listening.
Operator:
Peter Kweon: Thank you very much for the presentation. We would now like to begin the Q&A. For those of you viewing the presentation through the Internet please contact us via contact number that is on the last page of the PPT deck. So now I’ll wait for the questions. First question is from Park [indiscernible] from [indiscernible] Securities.
Unknown Analyst: So good afternoon. My name is Park [indiscernible] from [indiscernible] Securities. So with regards to a credit cost, I have some questions. So rather than expectations in Q4 the credit cost was quite high, with regards to real estate PF, I do understand that there has been pre-emptive provisions. Can you break down the provisions between the banking subsidiaries and the non-bank subsidiaries, and the total exposure and the bridge load, and the delinquency, what is the size of the delinquency at the year end. And also, loan loss provisions this year as well. Despite the pre-emptive provisioning, with regards to the real estate PF, do you have any plans of additional provisioning this year as well? So these are my questions.
Jae Kwan Kim: So in the fourth quarter, we have had set aside large provisions. So bank subsidiaries and non-bank subsidiaries as well. In the case of the bank subsidiary, the PF is about, 95% of senior debt, but if you look at the loan provisioning between bank and the non-bank subsidiaries, the bank accounts for 60% and the bank and the non-bank subsidiaries. It’s 50 to 50. So the bank’s portion is quite large, but, the non-bank is subsidiaries there has been large additional provisions set aside for those segments as well and KRW13.5 trillion is a total exposure around so and, about from that, half of that is accounted for by the bank, and the rest is securities and insurance companies, are responsible for those other provisions and with regards to delinquency ratio, well, in the case of the real estate PF, the NPL ratio is about 1% is 0.8%, less than 1% 0.8%.
