Industrial Bank of Korea: Lukewarm 2Q26 earnings outlook with limited positives in dividend payout

研报英文原文证据摘录

Industrial Bank of Korea: Lukewarm 2Q26 earnings outlook with limited positives in dividend payout

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

08 July 2026

Industrial Bank of Korea Neutral

024110.KS, 024110 KS

Lukewarm 2Q26 earnings outlook with limited positives Price (08 Jul 26):W20,950

in dividend payout Price Target (Jun-27):W24,000

We expect weak 2Q26 earnings of W606bn, below Street estimates, reflecting: (1) Diversified Banks

ACa softer NIM recovery amid higher funding-cost pressures, (2) weaker trading Jihyun Cho

gains in a rising-rate backdrop, and (3) FX-related losses. While solid loan growth (82-2) 758-5480

should support NII, we expect investor focus to remain on credit costs, given IBK’s jihyun.cho@jpmorgan.com

SME-heavy book and higher vulnerability to economic cycles. On shareholder Tae Wook Kim

returns, IBK will likely initiate its first interim dividend payout in July following (82-2) 758-5719

amendments to its Articles of Incorporation in March 2026. While the increased taewook.kim@jpmorgan.com

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

frequency of dividend payouts is encouraging, we see limited upside to the payout Branch

ratio given a thinner capital buffer, with CET1 still below 12%. Given IBK’s role

as an SOE bank supporting SME funding, we maintain relatively limited

expectations for earnings growth and shareholder return uplift. We retain Neutral. Key Changes (FYE Dec)

Prev Cur Δ

• 2Q26 earnings preview. We expect net profit of W606bn, below Street Adj. EPS - 26E (W) 3,104 2,989 -3.7%

estimates, due to 1) softer NIM recovery under funding cost pressure from loan Adj. EPS - 27E (W) 3,428 3,345 -2.4%

growth (~2% q/q); 2) weak trading gains on rising rates; 3) FX translation

Quarterly Forecasts (FYE Dec)