[Click eStock] “BNK Financial Group, Shareholder Return Plan Exceeding Expectations”

Korea Investment & Securities analyzed on the 31st that attention should be paid to the increased likelihood of BNK Financial Group achieving its shareholder return expansion plan, which exceeded expectations.

Baek Doosan, a researcher at Korea Investment & Securities, stated in a report on the same day, “BNK Financial Group has presented a plan to enhance corporate value, aiming for a ROE of over 10% and a shareholder return ratio of over 50% by 2027,” adding, “Since the common equity tier 1 ratio in the third quarter was 12.3%, already close to the mid-term target of 12.5%, attention should be paid to the increased likelihood of achieving the shareholder return expansion plan, which was beyond expectations.”

The controlling net profit for the third quarter this year was 212.8 billion KRW, about 3% below consensus. Interest income was solid, but non-interest income was sluggish.

Researcher Baek explained, “The group NIM was 2.10%, down 3 basis points from the previous quarter,” and added, “Although the combined bank NIM fell by 5 basis points reflecting the decline in market interest rates, the capital NIM improved, resulting in a relatively good performance.”

He analyzed, “The combined KRW loans of the two banks grew evenly in both household and corporate loans, increasing by 1.4% compared to the previous quarter,” and “As market competition related to corporate credit eased compared to the first half of the year, growth was centered on large corporations, with corporate loans at Busan Bank and Kyongnam Bank increasing by 1.3% and 1.8% respectively compared to the previous quarter.”

However, he noted, “Additional provisions for PF are expected to increase in the fourth quarter,” and explained, “Group non-interest income was 63.5 billion KRW, down 93% from the previous quarter, due to a continued decrease in PF fees and an overall decline in securities-related gains and loan sale gains in other non-interest income sectors.”