IBK Investment & Securities maintained its target stock price of 15,000 won and investment opinion of 'buy', saying that it has made record profits for the Industrial Bank of Korea and is improving its subsidiary performance.
IBK Investment & Securities analyzed, "Consolidated net profit is expected to increase 41% this year compared to the same period last year, and if dividend propensity recovers to its original level, high dividend yield is expected.". "The dividend payout ratio, which exceeded 30%, fell to 24.1% last year, which is reflected in the forecast at 31% this year," IBK Investment & Securities said.
"The forecast for DPS (dividend per share) is 800 won. Since there were no interim dividends, the dividend yield based on 800 won is 7.3%, the highest among bank shareholders.".
IBK Investment & Securities also added, "It may seem like a somewhat aggressive outlook, but we believe that it is possible because it showed a large profit increase and a continued dividend payout ratio of more than 30%.".
"The cumulative consolidated net profit in the third quarter was KRW 1.82 trillion, up 54% compared to last year, and there was a base effect of the disappearance of corona-related provision expenses last year, but interest and non-interest income increased 6.9% and 12.3%, respectively, had a big impact," IBK Investment & Securities said.
"The continued growth of the non-banking sector, which recorded a cumulative profit growth rate of 68% in the third quarter, and the cumulative net profit growth in the third quarter is 92% in capital, 15% in investment securities and 47% in pension insurance.".
IBK Investment & Securities said, "The portion of non-bank profits was 22.1%, down slightly from 23.6% last year, and bank profits were normalized," adding, "The ratio of NPL (debt bonds) fell 0.1% p year-on-year to 0.85%, down 0.2% p from 1.05% at the end of last year.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
