 |
(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] KB Securities raised its target price for Hana Financial Group from 78,000 KRW to 83,000 KRW on the 7th, citing expectations of strong performance in the third quarter and increased anticipation for the company's value-up self-disclosure.
KB Securities noted that Hana Financial Group's consolidated net income attributable to shareholders for Q3 is expected to reach 1 trillion KRW, reflecting an 11% increase compared to the same period last year, which exceeds the market consensus by 2%. The analysis attributes this improvement to robust commission income, approximately 70 billion KRW in foreign exchange revaluation gains from declining exchange rates, and bond valuation gains due to falling interest rates.
Additionally, the company indicated that the credit loss provision ratio (CCR) is expected to improve compared to the previous year due to a base effect from additional provisions made last year. The common equity tier 1 (CET1) capital ratio is projected to be 13%, improved by the decline in exchange rates and slower loan growth.
KB Securities emphasized that Hana Financial Group's management is committed to enhancing shareholder return rates. The improved CET1 capital ratio, aided by lower exchange rates and loan growth management, is likely to heighten expectations for the planned value-up self-disclosure during the Q3 earnings announcement.
The report also mentioned that Hana Financial Group executed a 300 billion KRW share buyback and cancellation in Q1. Considering the planned cash dividends of 1 trillion KRW, additional share buybacks and cancellations in Q4 are anticipated. Specifically, the estimated scale for Q4 buybacks and cancellations is around 100 billion KRW, with a total shareholder return ratio projected at approximately 37%. KB Securities identified Hana Financial Group as its top pick within the financial holding and banking sectors.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
