BNK Securities on the 25th expected that stock-related gains and fee income at the securities subsidiary for KB Financial Group would increase sharply. It kept its investment opinion at "buy" (BUY) and its target price at 200,000 won. The previous trading day's closing price was 151,800 won.
BNK Securities projected that KB Financial Group's net income attributable to controlling interests in the second quarter of this year would rise 13.4% on-year to 197.09 billion won. It expected second-quarter interest income to increase 9.2% from a year earlier to 339.13 billion won. The analysis is that, following the first quarter, as the KOSPI's gains expand further, KB Financial Group's various earnings will increase.
Kim In, a BNK Securities researcher, said, "Although market interest rates have continued to rise, the narrower increase will improve bond profit and loss," and added, "The provision (100 billion won) that was proactively reflected in the same period a year earlier will expire and the burden of additional provisions is not large, but considering a conservative stance, the allowance for credit losses will increase slightly compared with the normal level."
Kim added, "Selling and administrative expenses will increase 5.6% from a year earlier, reflecting the hike in the education tax (40 billion won) and higher securities performance bonuses."
Kim projected that net income attributable to controlling interests, interest income, and non-interest income will all increase and that performance this year will continue to improve on better allowances for credit losses.
Kim assessed, "With separate taxation applied to dividend income and tax-free dividends implemented next year, shareholder returns will be maximized."