The Industrial Bank of Korea demonstrated its biggest quarterly performance in the second quarter. In response, eBest Investment & Securities maintained its "buy" opinion on the Industrial Bank of Korea on the 27th and raised its target stock price by 14% to 12,500 won.
According to the Financial Supervisory Service, IBK's net profit in the second quarter of this year was KRW 619.2 billion, the highest ever since the previous quarter.
Net profit in the first half of the year was 1.2143 trillion won, exceeding 1 trillion won in net profit for the first time in the first half. "Interest profit growth has expanded thanks to a rise in net interest margin and solid loan growth," said Ebest Investment & Securities
"The improvement in commission profit also led to a 4.4% increase in core profit compared to the previous quarter, driving profit growth.". Ebest Investment & Securities said, "Non-banking subsidiaries such as Securities and Capital also continued its positive stance, contributing to the expansion of non-interest profits," adding, "In particular, we positively evaluate its performance in the second and fourth quarters as its net interest margin (NIM), which had been slow to rise compared to other banks, is recovering.".
eBest Investment & Securities predicted that IBK's earnings will continue to be strong this year. eBest Investment & Securities said, "The expected net profit in 2021 is expected to reach KRW 2.2 trillion due to increased profits and cost stability of the Industrial Bank of Korea.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
