S. Korea Financials | Asia Pacific 2Q26 Preview: Meeting Expectations

Research evidence excerpt

S. Korea Financials | Asia Pacific 2Q26 Preview: Meeting Expectations

Idea

July 13, 2026 10:55 AM GMT

Morgan Stanley & Co. International plc, Seoul Branch+MS. Korea Financials | Asia Pacific Joon Seok

Equity Analyst

2Q26 Preview: Meeting Joon.Seok@morganstanley.comHeewon Choi +82 2 399-4934

Heewon.Choi@morganstanley.com +82 2 399-4836

Expectations Minseo Kang

Research Associate

Minseo.Kang@morganstanley.com +82 2 399-4816

Korean banks' share prices have been on an up and down ride

since March, but since July they have seen a strong push, hitting

new highs. Broadening out has been a factor with the story for

banks having multiple positive elements.

S. Korea Financials

Key Takeaways Asia Pacific

Industry View Attractive

2Q26 earnings season coming up, and the focus is on where banks are on ROE

Please refer to related reports below:

expansion and guidance for 2H26

Korea Macro Strategy, Equity Strategy &

Non-banking ops, especially the securities businesses, should maintain strong Economics: Why Is KRW So Weak? (9 Jul 2026)

trends but key will be whether structural changes are visible Korea Renaissance: Is the Household Asset Move

Leaning more to our Bull case as banks benefit from a broadening trend, but still to Equities Sustainable? Possibly (11 Jun 2026)

early to confirm whether sustainable ROE level for banks can be reached soon Global Banks & Exchanges: Digital Rails, Real

Economics: Digital Assets & the Future of We tweak our rankings, keeping SFG on top, putting HFG at no. 2 and then KFG,

Wholesale Banking (2 Jun 2026) as the valuation gap has widened, with a stronger KRW expected in 2H26

S. Korea Financials: Korea Banks to Further

Remain constructive on Korean banks: We continue to hold an Attractive view on Tighten Mortgage Lending (9 Jul 2026)