Capital Group, a major investor in Korea's financial holding companies, cut its equity stakes in KB Financial and Hana Financial Group while increasing its equity in regional financial holding companies such as BNK Financial Group and JB Financial Group. Capital Group is known as one of the four largest U.S. asset managers and has consistently invested in Korean bank stocks.
On the 13th, according to the investment banking (IB) industry, Capital Research and other Capital Group affiliates recently sold 1.45% of their equity in KB Financial. The sale price is estimated at about 800 billion won as of the 30th of last month. Capital Group's equity ratio fell from 8.27% to 6.82%.
During the same period, Capital Group also sold 1.05% of its equity in Hana Financial Group, lowering its equity ratio from 6.6% to 5.55%. The sale price is estimated at around 300 billion won.
Capital Group steadily increased its equity in KB and Hana Financial in recent years, rising to the No. 2 shareholder after the National Pension Service. It still holds the No. 2 shareholder position, but has continued selling shares since the end of last year. Capital Group said the sale was for "investment recovery purposes."
It increased its equity in BNK Financial Group and JB Financial Group. JB Financial rose from 5.17% to 6.38%, and BNK Financial increased from 5.60% to 8.06%. Capital Group became the No. 3 shareholder of BNK Financial after Lotte Group (10.42%) and the National Pension Service (8.57%). JB Financial's No. 4 shareholders include Samyang Corporation, the activist fund Align Partners, and OK Savings Bank.
In the IB industry, there is analysis that Capital Group rates the expansion of shareholder return policies at regional financial holding companies more highly than those at large financial holding companies. JB Financial has recorded a high shareholder return ratio comparable to the four major financial holding companies, and BNK Financial is also accelerating its value-up competition.
JB Financial's total shareholder return ratio last year reached 45%. This year's target is 50%. The shareholder return ratio refers to the share of earnings that corporations return to shareholders through dividends or share buybacks. BNK Financial's total shareholder return ratio last year was 40.4%, with a goal of reaching 50% this year.