KB Financial: A Valuation Premium Is Warranted

The Value Pendulum
Investing Group Leader

Summary

  • KB Financial's diversified income mix and recent quarterly net interest margin expansion imply that its earnings are expected to be reasonably resilient notwithstanding changes in the interest rate environment.
  • KB's CET1 ratio is superior that of its key peers, and this means that the company has the capital strength to sustain a reasonably good level of shareholder capital return.
  • I retain my Buy rating for KB Financial, as I think that KB stock should command a valuation premium over its peers.
  • Looking for more investing ideas like this one? Get them exclusively at Asia Value & Moat Stocks. Learn More »

South Koreans Cancel Credit Cards After The Alleged 104m Account Details Theft

Chung Sung-Jun

Elevator Pitch

I continue to assign a Buy rating to KB Financial Group Inc.'s (NYSE:KB) [105560:KS] stock.

With my earlier March 3, 2023 update for KB, I highlighted that a potential increase in capital returned to shareholders via

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This article was written by

The Value Pendulum
12.74K Followers

The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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