[Click eStock] KB Financial, Net Profit Excluding Voluntary Retirement Expected to Reach 1 Trillion Won

[Asia Economy Reporter Hwang Junho] Daishin Securities maintained a buy rating on KB Financial Group and kept the target price at 65,000 KRW.

Daishin Securities expects KB Financial Group's annual profit this year to exceed 4.4 trillion KRW. The company posted quarterly profits exceeding 1.2 trillion KRW, and net income, excluding voluntary retirement costs, is close to 1 trillion KRW. ROE is projected to be 9.6%, similar to the level seen in 2017 when the stock price was at a historical high. Last quarter's net income is expected to be 681 billion KRW, nearly matching the consensus estimate of 690.5 billion KRW.

The bank's NIM is forecasted to improve by +2 basis points quarter-on-quarter and +9 basis points year-on-year to 1.6%. Won-denominated loans increased by 2.2% quarter-on-quarter to 318.6 trillion KRW, with significant growth expected in large corporate loans this quarter. SG&A expenses are estimated to rise significantly to 2.53 trillion KRW compared to the previous quarter.

Researcher Park Haejin of Daishin Securities stated, "Expectations for dividends are also increasing," adding, "We forecast an annual DPS of 2,970 KRW and a year-end dividend of 2,220 KRW. As the financial holding company with the strongest capital capacity, we can anticipate a proactive dividend policy beyond just stock dividends."

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