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(Photo = DGB Financial Group) |
[Alpha Biz= Reporter Kim Sangjin] DGB Financial Group has announced plans to enhance shareholder value through stock buybacks and retirements as part of its value-up strategy. This marks the first stock buyback initiative in the group's history, with a target of approximately 150 billion won to be executed by 2027.
In its announcement on the 29th, DGB outlined key performance indicators to achieve, including a return on equity (ROE) of 9%, a Common Equity Tier 1 (CET-1) ratio of 12.3%, and a total shareholder return (TSR) rate of 40%.
The group, which includes its main subsidiary iM Bank (formerly Daegu Bank), aims to strengthen its financial stability and profitability by transitioning to a commercial bank. This shift will support the group’s growth and enable a focus on maintaining capital adequacy, diversifying its loan portfolio, and improving asset quality.
DGB's specific targets include achieving an ROE of over 9% within three years through appropriate growth size, effective portfolio diversification, and enhanced operational efficiency. The bank also aims to achieve a ROCE (return on capital employed) of over 9.5%, excluding the effects of hybrid capital securities.
To meet its CET-1 ratio target of 12.3% within three years, DGB plans to manage the growth of risk-weighted assets (RWA) at an annual limit of 4%. This includes improving the asset portfolio and expanding retained earnings through profitability enhancement and sound asset management. Additionally, the bank will implement a reliable and predictable shareholder return policy, reducing capital ratio ranges while increasing shareholder return rates.
By faithfully executing its value-up plan by 2027, DGB Financial Group aims to transform into a “New Hybrid Banking Group” as part of its vision for a commercial financial group.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
