KB Financial: Market's Focus Is On Share Cancellation And Rate Hikes

Feb. 10, 2022 5:52 AM ETKB Financial Group Inc. (KB)1 Comment

Summary

  • I am positive on KB Financial's plans to cancel treasury shares worth about KRW150 billion, and the company targets to raise its dividend payout ratio from 26% to 30%.
  • The Bank of Korea's rate hikes are expected to be the key driver of KB Financial's net interest margin expansion and bottom line growth in fiscal 2022.
  • KB Financial continues to be deserving of a Buy rating, given the substantial discount to book value and its mid-single digit forward P/E multiples.
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Korean Won currency bills are fanned out on a white surface

hatman12/iStock via Getty Images

Elevator Pitch

I still have a Buy investment rating assigned to KB Financial Group Inc. (NYSE:NYSE:KB) [105560:KS]. My prior article for the Korean financial services company was written on November 18, 2021.

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KB Financial

KB Financial's Q4 2021 Results Presentation

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Asia Value & Moat Stocks is a research service for value investors searching for attractive Asia-listed investment opportunities  with a huge gap between price and intrinsic value, leaning towards both deep value balance sheet bargains (i.e. buying assets at a discount e.g. net cash stocks, net-nets, low P/B stocks, sum-of-the-parts discounts) and wide moat stocks (i.e. buying earnings power at a discount in great companies like "Magic Formula" stocks, high quality businesses, hidden champions and wide moat compounders).


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Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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