Korea Banks: Key takeaways from recent investor meetings: increasing interest in FGs with enhanced ROE

研报英文原文证据摘录

Korea Banks: Key takeaways from recent investor meetings: increasing interest in FGs with enhanced ROE

J P M O R G A N Asia Pacific Equity Research

29 June 2026

Korea Banks

Key takeaways from recent investor meetings:

increasing interest in FGs with enhanced ROE

We have met with investors across Europe and Asia in recent weeks. Against an Diversified Banks

ACAI-led rally and heightened volatility, investors are actively looking for non-AI Jihyun Cho

ideas to diversify. Most agree with our ROE-led re-rating thesis, but the pushback (82-2) 758-5480

has shifted to near-term catalysts and potential downside risks. Key questions jihyun.cho@jpmorgan.com

centered on: (1) the durability of the recent fee income uptrend, (2) NIM sensitivity Tae Wook Kim

to rate expectations, (3) incremental upside to shareholder returns after 2025’s (82-2) 758-5719

dramatic TSR hikes, and (4) asset quality as rates rise. Notably, investor behavior taewook.kim@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

appears to be more catalyst-driven than in prior cycles—likely reflecting higher Branch

opportunity costs in a fast-moving market, rather than preemptive positioning.

However, ahead of a 2Q reporting season with positives (strong earnings and

sizable buyback/cancellation programs to be announced), we see this as a good

buying opportunity to accumulate Korean financial groups (FGs),

particularly KB/Shinhan/Hana (all OW), as ROE should trend towards 11–12%

medium term (vs. 9–10% today) on stronger fee income and resilient interest

income in a higher-rate environment. Valuation remains undemanding at <1.0x

P/B, supporting a more extended re-rating.

• Increasing investor interest in Korean FGs. Amid the AI-sector driven rally