[Click e-Stock] "iM Financial, Unstoppable Performance and Indicator Improvement"

Target Price Raised from 11,500 Won to 13,000 Won

On April 29, Hana Securities raised its target price for iM Financial Group from 11,500 won to 13,000 won, citing better-than-expected results due to eased provisioning burdens and significant improvements in non-banking businesses such as securities and capital. The investment opinion was maintained as 'Buy'.

In the first quarter, iM Financial Group posted a net profit of 154.3 billion won, up 38.1% year-on-year, exceeding market expectations. Choi Jungwook, a researcher at Hana Securities, explained, "The main reason for the strong performance was undoubtedly the easing of provisioning burdens," adding, "This was due to the reversal of about 14.2 billion won in real estate PF provisions in the securities division, as well as the group NPL (non-performing loan) ratio remaining at 1.63%, the same level as the previous quarter. Overall asset quality was sound, resulting in group credit cost being limited to 70 billion won."

With iM Financial Group's Common Equity Tier 1 (CET1) ratio reaching 12.02% in the first quarter, expectations for increased shareholder returns are also rising. Choi noted, "With the 40 billion won share buyback currently underway in the first half nearly completed, at least an additional 150 billion won in share buybacks and cancellations is expected in the second half." He added, "If the company achieves its target CET1 ratio of 12.3% earlier than planned, there is a high possibility that the value-up target shareholder return rate will also be increased."

He continued, "iM Financial is the only banking holding company with a relatively low target total shareholder return rate of 40% for 2027, which was due to a lower capital ratio at the time the value-up plan was established. However, the difference in CET1 ratios with mid-sized banking groups such as BNK Financial and JB Financial, which are targeting 50%, is now only about 25 basis points. If the ratio improves further, there is a high possibility that the value-up plan will be revised upward."