[Click eStock] "JB Financial Group Highlights Differentiated ROE Within Industry"

[Asia Economy Reporter Park Jihwan] Yuanta Securities evaluated on the 11th that JB Financial Group is expected to demonstrate differentiated investment returns (ROE) this year. They presented a buy rating and a target price of 7,500 KRW.

Researcher Jeong Taejun of Yuanta Securities stated, "Despite not having many non-bank subsidiaries like other companies, it shows the highest ROE within the banking industry, indicating differentiated profitability."

This year's ROE is expected to rise by 0.2 percentage points from the previous year to 10.1%. This is explained by the increase in interest income from bank and non-bank capital due to loan growth and a decrease in expense ratio from continuous SG&A efficiency improvements.

Annual profit this year is forecasted to grow by 8.3% compared to the previous year, with interest income expected to increase by 5.7%. Researcher Jeong predicted, "The bank's net interest margin (NIM) will decline by 4bps compared to last year, but KRW loans will increase by 4.9%."

He also stated, "The expense ratio is expected to improve by 1.1 percentage points year-on-year due to continuous efforts to improve SG&A efficiency," and "the loan loss cost ratio is expected to be similar to last year due to provisions related to COVID-19."

Researcher Jeong added, "This year, the capital sector will contribute more to defending NIM than the bank," and forecasted, "If the base interest rate hike occurs as expected in the fourth quarter, the bank's NIM will also recover significantly, driving strong earnings momentum."

This content was produced with the assistance of AI translation services.