Record-High Earnings and Over 50% Shareholder Return Rate... This Bank Stock Expected to Rise [Click eStock]

LS Securities has raised its target price for JB Financial Group from 30,000 won to 33,000 won. The investment rating has also been upgraded from 'Hold' to 'Buy'.

On July 28, Jeon Bae-seung, a research analyst at LS Securities, stated, "This is the result of reflecting changes in earnings estimates and increased shareholder returns." He added, "It deserves a premium given its industry-leading profitability and a visible shareholder return rate of over 50%."

The net profit for the second quarter of this year is expected to reach 219.6 billion won, marking the highest-ever quarterly performance. Jeon noted, "Both Jeonbuk Bank and Gwangju Bank are expected to show a significant increase in net profit compared to the first quarter of this year, and the capital division is set to exceed 100 billion won in net profit thanks to strong gains from securities-related income and a reduction in credit losses." He commented, "Given the improvements in the banking segment and the high profit contribution from the capital unit, we assess the results positively."

The news of JB Financial’s 100 billion won share buyback and cancellation planned for the second half of this year is also regarded as a positive factor. Jeon added, "The common equity Tier 1 (CET1) ratio stands at 12.52%, with only a slight decline, prompting the company to announce additional share buybacks and cancellations for the second half of the year." He further stated, "Achieving the target shareholder return rate of 50% announced earlier this year as part of the corporate value enhancement plan is expected to be well within reach."

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