Mirae Asset Securities expected on the 29th that Industrial Bank of Korea (IBK)(024110)'s annual dividend per share will decline. It kept a "neutral (hold)" investment view and a target price of 22,000 won. Industrial Bank of Korea (IBK)'s previous closing price was 20,400 won.
Jeong Tae-jun, a researcher at Mirae Asset Securities, said, "The common equity tier 1 ratio in the second quarter was 11.56%, up 5 bps from the previous quarter, and as expansion centered on loans to corporations is expected to continue, we expect hitting 12% within the year will be impossible," adding, "Therefore, the payout ratio also is not expected to rise." The upside was seen at 7.8%.
Industrial Bank of Korea (IBK)'s second-quarter results this year were in line with the consensus (the average of market forecasts). Second-quarter net income attributable to owners of the parent was 683.6 billion won, exceeding Mirae Asset Securities' estimate of 623.2 billion won and matching the consensus of 693.7 billion won.
Jeong said, "Net interest income and SG&A were better than expected, but noninterest income and credit costs were weaker than expected," and added, "It is positive that although the growth rate of won-denominated loans jumped 1.8%, net interest margin fell only 1 bp."
Meanwhile, the dividend per share for 2026 was expected to decrease. Industrial Bank of Korea (IBK) paid an interim dividend of 210 won for the first time in the first half. However, this divides the previously paid once-a-year dividend based on a standalone payout ratio of 35% into two payments. As a result, the year-end dividend per share was projected to fall by that amount.
Jeong explained, "As Industrial Bank of Korea (IBK)'s standalone net income this year is expected to decline from a year earlier, we expect the annual dividend per share to also decrease 5.1% year over year to 995 won."