[Click eStock] "BNK Financial Group, Clear Profit Growth Breaks Performance Ceiling... Target Price Up"

BNK Financial Group

[Asia Economy Reporter Song Hwajeong] IBK Investment & Securities raised the target price for BNK Financial Group from 10,000 KRW to 11,000 KRW on the 2nd, noting that the company showed a clear profit growth trend by recording the highest cumulative net profit in the first half of the year, surpassing performance expectations. The investment opinion was maintained as 'Buy.'

BNK Financial Group's cumulative consolidated net profit for the first half of this year reached 468 billion KRW, a 51% increase compared to the same period last year, marking an all-time high. The consolidated net profit significantly increased from 192.7 billion KRW in the first quarter to 275.3 billion KRW in the second quarter. Kim Eungap, a researcher at IBK Investment & Securities, analyzed, "Although one-time factors such as reversal of provisions and profits related to highly volatile securities are included, even excluding these, the profit growth trend is clear. The main factors for performance improvement are increased interest income and decreased provision expenses, and recently, non-interest income, which included one-time gains, also improved significantly."

Performance improved with a balanced growth trend, centered on non-bank sectors in the first quarter and banks in the second quarter. The net profit of banking subsidiaries increased by 31% compared to the same period last year, while non-banking subsidiaries grew by 103% in the first half. The profit ratio of non-bank sectors was 30%, with capital and investment securities, major subsidiaries, posting second-quarter profits up 10% and 6% respectively compared to the previous quarter.

IBK Investment & Securities revised BNK Financial Group's consolidated net profit for this year upward by 21.8% to 786.6 billion KRW, a 52% increase from the previous year. Researcher Kim stated, "BNK Financial Group has had an image of experiencing significant performance deterioration depending on regional economic fluctuations, but recent results show volatility trending upward. It can be said that the performance ceiling, which had acted as a limitation for years, has been surpassed, and future performance, even if volatile, will remain within a leveled-up range."

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