Hana Securities forecasts that KB Financial will achieve a record quarterly profit in the third quarter, raising its target price to 235,000 won. The investment recommendation remains a 'buy.'
In a report released on the 14th, analyst Choi Jeong-wook stated, "The net interest margin (NIM) for banks in the third quarter is estimated to decline by 2 basis points to 1.72% compared to the previous quarter, but the growth of approximately 1.7% in bank won-denominated loans is expected to offset this negative effect."
He added, "Moreover, due to the expiration of 130 billion won in interest expenses related to non-controlling interests in funds during the second quarter, the group's net interest income is likely to increase by more than 6% compared to the previous quarter. Although a decrease in brokerage fees is inevitable due to reduced trading volumes in the stock market, the group's net commission income for the third quarter is expected to be 1.45 trillion won, higher than the 1.36 trillion won recorded in the first quarter."
Choi also projected that operating expenses could significantly decrease due to reduced performance bonuses in the securities sector, and the group's loan loss provisions are expected to remain similar to the second quarter at around 530 billion won.
Additionally, he noted, "We assume that approximately 110 billion won will be recognized as non-operating income from the reversal of penalties related to equity-linked securities (ELS) in Hong Kong during the third quarter. If the Financial Services Commission does not reach a final conclusion in the third quarter, the actual net profit for the third quarter is estimated to be around 2 trillion won, similar to the second quarter."
* This article has been translated by AI.
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