Korea Financials: Marketing feedback: Banks staying the course despite market volatility

研报英文原文证据摘录

Korea Financials: Marketing feedback: Banks staying the course despite market volatility

6 July 2026

Korea Financials EquitiesCommercial Banks

Marketing feedback: Banks staying the course despite

market volatility Korea

◆ We expect another record-high 2Q earnings, following 1Q26, Jaewoong Won*

thanks to NIM improvement and resilient fee income Analyst, Korea Financials & Fintech The Hongkong and Shanghai Banking Corporation

Limited, Seoul Securities Branch

◆ A growing promissory note business and stabilising loss jaewoong.won@kr.hsbc.com

+82 2 3706 8770

ratios should boost non-banking income gradually

Chan Park*

Research Associate, Korea Autos & Financials

◆ Within banks, we like Buy-rated KB and Shinhan; SL and DBI The Hongkong and Shanghai Banking Corporation

within insurers Limited,chan.park@kr.hsbc.comSeoul Securities Branch

+822 3706 8713

Market uncertainties are rising: During our HK & SG marketing trip (29 June–2 July

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

2026), we discussed the following investor concerns: (1) 2Q26 earnings preview; not registered/ qualified pursuant to FINRA regulations

(2) appropriate PB multiple levels; (3) asset quality; and (4) potential upgrades to

Value-up plans. In light of the recent increase in market volatility, we note investors’

growing interest in banks/insurers as a means to diversify portfolios and hedge risks.

Our view: 1) We expect another record-high quarterly earnings result, driven by NIM

improvement and strong fee income (Korean Banks: Stronger than 1Q26 earnings,

23 June 2026). Elevated daily trading volumes should provide an additional boost to fees

and commissions. The launch of ETF leverage products should contribute further. In