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JB Financial Group: Distinguished Credit Cycle Leads To Superior ROE

Summary

We believe JB Financial Group’s 3Q19 earnings will be superior to those of its peers on solid NIM and low credit costs.

Our net income estimate of KRW93.1bn is higher than the consensus of KRW91.4bn.

We present JB as our Conviction Call with a target price of KRW8,400 in light of its solid fundamentals for 2H19 and 2020 as well as handsome dividend yield.

JB bank korea bank finance

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: Hyundai Motor Company is a passive shareholder in our bank.