[Infostock Daily= Reporter An Hoe Hyun] Kiwoom Securities said on the 23rd that KB Financial showed outstanding profit stability as its securities performance improved significantly due to the strong stock consignment brokerage market despite the crisis of COVID-19.
In response, the company maintained its 'Buy' investment opinion, while raising its target stock price by 6.67% from 60,000 won to 64,000 won.
KB Financial posted 1.1666 trillion won in the third quarter of this year, up 18.8% from the previous quarter, better than market expectations(990.1 billion won). Considering 145 billion won in profits from the acquisition of Prudential Life Insurance with the bargain purchase, it is estimated that it has achieved the best performance among large financial groups.
The reason behind its performance was that it offset the decline in the bank's performance by strengthening the non-banking sector through appropriate M&A and recording good performance in securities, credit cards and insurance. In addition, both the interest and non-interest sectors performed well in the banking sector due to loan growth and proper margin management.
Kiwoom Securities raised its target stock price, expecting profit stability to continue. As Prudential Life Insurance's profits are reflected in earnest from the fourth quarter, it is expected to have a positive impact on its performance.
Reporter An Hoe Hyun ahh@infostock.co.kr