[Click eStock] "DGB Geumyung, Surprise Q3 Earnings... Q4 Looks Even Better"

[Asia Economy Reporter Park Jihwan] Korea Investment & Securities analyzed on the 29th that despite DGB Financial Group recording earnings in the third quarter that exceeded market expectations by more than 10%, an even greater improvement in performance is expected in the fourth quarter. They maintained a 'Buy' investment rating and a target price of 13,000 KRW.

Baek Doosan, a researcher at Korea Investment & Securities, stated, "The third quarter's controlling net profit was 138.7 billion KRW, exceeding consensus by more than 10%," adding, "This was largely due to lower-than-expected loan loss provisions and selling and administrative expenses."

The bank's net interest margin (NIM) fell by 1 basis point compared to the previous quarter. However, considering the bank bond interest rate trends after the August base rate hike and the monthly NIM trends from July to September, the fourth quarter NIM is expected to rise by 5 basis points compared to the previous quarter.

Bank won-denominated loans increased by 1.4% compared to the previous quarter, with small and medium enterprise loans rising by 1.8% and household loans by 1.5% during the same period. Researcher Baek said, "In particular, household loans increased by 8.2% compared to the end of last year," adding, "However, considering the strengthened internal limit management implemented from the end of September and the household loan ratio target of 35% (currently 33%), the household loan growth rate is expected to gradually stabilize downward next year."

Researcher Baek predicted, "The early rise in NIM due to the base rate hike remains valid," and "NIM in the fourth quarter and the first quarter of next year is expected to show a continuous strong rebound."

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