[Click eStock] iM Finance Expected to Achieve Highest Profit Growth Rate Among Banks

Hana Securities has maintained its target price of 19,000 won and a 'Buy' investment rating, stating that iM Finance is expected to have the highest profit margin in the banking sector in 2026. The current share price (closing price on the 28th) is 14,930 won.

On the 29th, Choi Jungwook, a researcher at Hana Securities Research Center, stated, "Due to various cost burdens such as selling, general and administrative expenses and credit loss provisions, the estimated net profit for the fourth quarter is expected to be 7.5 billion won, resulting in only a slight profit. Nevertheless, annual net profit is expected to nearly double, increasing by about 100% year-on-year."

The Common Equity Tier 1 (CET1) ratio for the fourth quarter is projected to be 12.02%, exceeding 12%. The CET1 ratio is a key indicator of a bank's financial soundness, representing its capacity to absorb unexpected losses. It is also used as a basis for shareholder return policies.

iM Finance is maintaining its value-up plan to keep the total shareholder return rate within 40% as long as the CET1 ratio remains below 12.3%. Compared to its peers, the target total shareholder return rate is somewhat low. Researcher Choi assessed, "There is a high possibility that the target total shareholder return rate will be raised soon through an upgrade of the value-up policy."

Additionally, another researcher noted, "With approximately 290 billion won in tax-free dividend resources, iM Finance is the only small and medium-sized bank likely to be able to pay tax-free dividends after 2027."

The estimated net profit for 2026 is expected to reach 476 billion won, an increase of 8.4% compared to the previous year.

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