JB Financial Group’s earnings remain robust through management of profits and health, said KB Investment and Securities on Nov 5 maintaining a “buy” recommendation and 8,000 won (US$7.12) target price.
Its shareholder net profit in the third quarter came in at 72.6 billion won, beating market consensus. Its subsidiary Kwangju Bank continued rallying with 50.7 billion won net profit, up 14 percent on-year. Jeonbuk Bank also boosted the financial group’s strong earnings recovering from last year’s declining margin in net interest and appropriation fund, with net profit jumping 55 percent to 31 billion won, said analyst Yoo Seung-chang.
If it continues to generate stable profits and new regulations are introduced next year, JB Financial’s capital adequacy ratio will increase to 10 percent. It will eliminate discount factors for its stocks. The fact that having added Kwangju Bank as a wholly owned subsidiary which will enhance its net profit next year also is a positive, added the analyst.