[Click eStock] "BNK Financial, Best Q3 Performance Expected Within Industry"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment maintained a 'Buy' rating and a target price of 12,000 KRW for BNK Financial Group on the 16th, expecting it to post the best performance in the banking sector in the upcoming third quarter.

Choi Jungwook, a researcher at Hana Financial Investment, stated, "The estimated net profit for the third quarter is expected to reach 245 billion KRW, a 79.6% increase compared to the same period last year, significantly exceeding the market expectation of 200 billion KRW," adding, "Following a substantial surprise in the second quarter, BNK Financial Group is expected to have the best performance among banks in the third quarter as well." The combined loan growth rate of the Busan and Gyeongnam banks is 3.6% in the third quarter, continuing a growth rate exceeding 3-4% for three consecutive quarters, which is estimated to be the highest loan growth rate among banks.

Although the non-recurring positive factors such as increased interest income from restructured loans and reduced deposit insurance premiums due to rating upgrades in the second quarter have disappeared, the combined net interest margin (NIM) of the two banks in the third quarter is expected to be similar to the previous quarter, with the trend of rising recurring NIM continuing.

At the beginning of last year, DGB Financial, which had a similar foreign ownership ratio in the low 50% range, now has a foreign ownership ratio close to 50%. Considering this, it is analyzed that the foreign ownership ratio of BNK Financial, currently at 39.4%, will also increase, leading to an improvement in foreign demand.

The year-end dividend yield this year is expected to be at least 6.5%, the highest among banks. Researcher Choi Jungwook emphasized, "The estimated net profit for this year is about 787 billion KRW, expected to increase by 51.6% compared to last year," and "The expected dividend per share (DPS) for this year is 520 KRW, which is about a 62.5% increase from last year's 320 KRW."