[Click e Stocks] Woori Financial Group, Resolving Overhang

[Asia Economy Reporter Junho Hwang] IBK Investment & Securities maintained a target price of 21,000 KRW on the 17th, stating that Woori Financial Group is expected to achieve its highest quarterly performance in the second quarter of this year.

Woori Financial Group's consolidated net profit for the second quarter of this year is forecasted to be 890.1 billion KRW. The previous forecast was 907.8 billion KRW, so this is a lower figure. Although the increase in NIM is greater than expected, conservative provisioning in preparation for an economic downturn is anticipated in the second quarter, leading to a reduced forecast. The consolidated net profit forecast represents a 6.1% increase compared to the first quarter. While additional provisioning is difficult to predict, IBK Investment & Securities expects it to be reflected to some extent across the banking sector.

Kim Eungap, a researcher at IBK Investment & Securities, stated, "Following the sale of 2.33% of shares by the Korea Deposit Insurance Corporation in May, the remaining stake decreased to 1.29%," adding, "Future sales are expected to act as an event for the complete resolution of the overhang."

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