Industrial Bank of Korea: 2Q26 results within market expectations; interim dividend introduced, but limited upside; Neutral

研报英文原文证据摘录

Industrial Bank of Korea: 2Q26 results within market expectations; interim dividend introduced, but limited upside; Neutral

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

28 July 2026

Industrial Bank of Korea Neutral

024110.KS, 024110 KS

2Q26 results within market expectations; interim Price (27 Jul 26):W21,400

dividend introduced, but limited upside; Neutral Price Target (Jun-27):W24,000

IBK’s 2Q26 net profit came in at W684bn (-9% YoY and -1% QoQ), in line with Diversified Banks

ACmarket expectations but above our conservative estimates. Despite muted trading Jihyun Cho

gains and higher SG&A-driven cost pressures, earnings remained resilient on (1) (82-2) 758-5480

steady net interest income supported by solid loan growth (+2% QoQ) despite a jihyun.cho@jpmorgan.com

1bp NIM decline, (2) consistent fee income flows, and (3) well-contained credit Tae Wook Kim

costs. On shareholder returns, IBK announced its first interim dividend with W210 (82-2) 758-5719

DPS (~20% of 2026 DPS) and continue its discussions with the government to taewook.kim@jpmorgan.com

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

further increase payout frequency in 2027 (two interim dividends plus a year-end Branch

dividend). While we view the improved visibility on shareholder returns as a

positive, we remain cautious as share price upside appears capped by 1) lingering

credit cost concerns on SME-centric loan book in policy lending and 2) limited Key Changes (FYE Dec)

room for shareholder returns upside given IBK’s policy-bank mandate to retain Prev Cur Δ

Adj. EPS - 26E (W) 2,989 3,217 7.6%

capital for SME lending and “productive finance” initiatives. We reiterate Neutral.

• 2Q26 earnings details. Net profit came in at W684bn (-9% YoY and -1% Quarterly Forecasts (FYE Dec)

QoQ).