[Click eStock] "Active Buying Opportunity"... Undervalued Bank Stocks

There is analysis suggesting that now is an active buying opportunity for KB Financial Group.

On July 1, Park Hyejin, a researcher at Daishin Securities, stated, "Despite having the best performance and the largest shareholder return in the industry, KB Financial Group's price-to-book ratio (PBR) is only 0.85 times due to continued recent corrections." Daishin Securities maintained its buy rating for KB Financial Group and kept its target price at 190,000 won.

Researcher Park said, "We initially expected the Common Equity Tier 1 (CET1) ratio for the first half of this year to be 13.64%, but since risk-weighted asset (RWA) management has been so effective, we have revised it to 13.71%." She added, "Accordingly, we have revised the scale of share buybacks for the second half of this year from 510 billion won to 600 billion won, and considering the company's capacity, it could go up to 760 billion won." She further commented, "This year, cash dividends are projected to reach 1.6 trillion won, and share buybacks 1.8 trillion won, bringing the total shareholder return close to 3.4 trillion won."

KB Financial Group is expected to set a new record for quarterly performance in the second quarter of this year. Net profit attributable to controlling shareholders is estimated at 1.92 trillion won, up 10.2% year-on-year. Park noted, "Among the four major financial holding companies, KB Financial Group has the most robust non-banking portfolio, which will drive a strong increase in non-interest income." She added, "As in the first quarter of this year, the improvement in the securities division is contributing to the strong non-interest income."

She also said, "The average daily trading volume in the second quarter of this year is expected to surpass 90 trillion won, an increase of 21.4% compared to the first quarter." She explained, "A bullish stock market not only benefits securities brokerage but also contributes to improvement in bank fee income."

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