Industrial Bank of Korea (024110.KS): Asia Financials Corporate Day Takeaways

研报英文原文证据摘录

Industrial Bank of Korea (024110.KS): Asia Financials Corporate Day Takeaways

Equity Research

16 June 2026 | 10:26PM KST

Industrial Bank of Korea (024110.KS): Asia Financials Corporate Day

Takeaways

Sinyoung Park

+82(2)3788-1778 |

sinyoung.park@gs.com

Goldman Sachs (Asia) L.L.C., Seoul

Branch

We hosted IBK at our Asia Financial Corporate Day on June 15th, 2026. Given rate hike

expectations and stronger macro print, discussions were centered around margin outlook,

asset quality, and shareholder returns.

Net interest income expected to strengthen with increased rate hike expectations

Given increased rate hike expectations and the shift in focus towards NIM

enhancement over absolute loan growth, management guided for a stronger net

interest income outlook. The company said that while a temporary leadership void

contributed to a soft 1Q26, with loan growth tracking at just +0.7% QoQ (vs.

+4%-5% full-year target), momentum is expected to recover in 2Q26 following the

formal appointment of the new CEO in late February.

Guiding for a modest credit cost improvement amid stronger macro print

Management continues to project a modest credit cost improvement (50bps vs.

54bp in FY25), supported by stronger-than-expected GDP growth driven by

tech/memory export boom. That said, operational headwinds persist in vulnerable

sectors like real estate and chemicals, which remain exposed to geopolitical risks in

the Middle East. Given the K-shaped nature of the recovery and as the trickle-down

effect to the broader economy remains unclear, we stay mindful of IBK’s cyclical loan

portfolio relative to peers (c50% in manufacturing).

Aims to improve shareholder return policies but TSR gap vs peers likely to persist

Despite robust profit momentum and capital relief to support applying lower risk