Latest news with #ChoiJeong-wook
Miami Herald
2 days ago
- Automotive
- Miami Herald
KB Financial joins South Korea's top five in market cap
SEOUL, May 29 (UPI) -- South Korea's stock market has been ruled by traditional manufacturing companies, including Samsung Electronics, SK hynix, and Hyundai Motor. However, KB Financial Group has broken into the top five firms by market capitalization this month, nudging past the country's largest automaker, Hyundai Motor, and defense giant Hanwha Aerospace. The financial group's market capitalization climbed to $28.91 billion Monday to overtake Hanwha Aerospace, with $28.63 billion, and Hyundai Motor, with $27.69 billion. Although Hanwha Aerospace reclaimed the No. 5 spot Tuesday, KB rebounded Wednesday. This marks the first time in roughly 15 years that KB Financial has become one of the five most valuable corporations in the Seoul bourse. "Most of all, KB Financial's profitability is outstanding, which has supported its share price since 2024," Hana Securities analyst Choi Jeong-wook told UPI. "Its diversified portfolio is also attractive. Many of its subsidiaries are leaders in their respective businesses. Its non-banking units accounted for some 40% of the total profits last year," he said. KB Financial netted $3.6 billion in profit last year, becoming South Korea's first financial company to reach the milestone. During the first quarter of this year, its bottom line amounted to $1.18 billion, up 62.9% from a year earlier. In the beginning of 2023, KB Financial trailed far behind Hyundai Motor, ranking 18th with a market capitalization of $15.88 billion against the latter's $31.32 billion. Since then, however, KB Financial's share price has nearly doubled to beat Hyundai Motor, which lost more than 10% during the span. The group's flagship unit is KB Kookmin Bank, South Korea's largest lender. Also under its umbrella are KB Kookmin Card, KB Securities, KB Insurance and KB Life Insurance. "Investor sentiment has been buoyed by KB Financial's embrace of the value-up program designed to boost the stock price," NH Investment & Securities analyst Jung Jun-seop said in a phone interview. In addition, the company recently disclosed s stock buyback plan -- a measure that "seems to win the hearts and minds of investors at home and abroad. The stabilizing foreign exchange rate also helps it," he added. The value-up program is the Korean government's initiative aimed at addressing the so-called "Korea Discount," which refers to the tendency of Korean stocks to trade at low valuations despite strong fundamentals. The Seoul administration has tried to encourage enterprises here to strengthen their corporate governance and improve capital allocation to deal with the Korea Discount. KB Financial was recently honored with the top prize in a government-held value-up award ceremony. Last month, the entity canceled 12 million shares, which were valued at $740 million. In his recent report, SK Securities analyst Seol Yong-jin said that KB Financial has enjoyed a premium, thanks to its status as a business bellwether. "KB Financial has demonstrated an advantage over its competitors in terms of foreign investor inflows," he wrote. As of Wednesday, foreign investors' net purchases of KB Financial stood at around $870 million for the month. Still, challenges remain, according to some observers. "Like its smaller competitors, KB Financial has failed to make its presence felt in the global market. The outfit mostly focuses on the domestic market," Seoul-based consultancy Leaders Index CEO Park Ju-gun said. "In addition, KB Financial depends too heavily on interest profits. The lowered key interest rate is feared to weigh on the group at least in the short term," he predicted. The Bank of Korea slashed its benchmark interest rate by 0.25% points to 2.5% Thursday. It was the central bank's fourth cut in seven months since last October. Globally, KB Financial is also recognized as a proactive sponsor of professional golfers, who play on the LPGA Tour. It backs Park In-bee, who topped the podium in the Rio 2016 Summer Olympics. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
2 days ago
- Automotive
- UPI
KB Financial joins South Korea's top five in market cap
KB Financial's share price nearly doubled since 2024, helping it become one of South Korea's five most valuable companies. Photo courtesy of KB Financial Group SEOUL, May 29 (UPI) -- South Korea's stock market has been ruled by traditional manufacturing companies, including Samsung Electronics, SK hynix, and Hyundai Motor. However, KB Financial Group has broken into the top five firms by market capitalization this month, nudging past the country's largest automaker, Hyundai Motor, and defense giant Hanwha Aerospace. The financial group's market capitalization climbed to $28.91 billion Monday to overtake Hanwha Aerospace, with $28.63 billion, and Hyundai Motor, with $27.69 billion. Although Hanwha Aerospace reclaimed the No. 5 spot Tuesday, KB rebounded Wednesday. This marks the first time in roughly 15 years that KB Financial has become one of the five most valuable corporations in the Seoul bourse. "Most of all, KB Financial's profitability is outstanding, which has supported its share price since 2024," Hana Securities analyst Choi Jeong-wook told UPI. "Its diversified portfolio is also attractive. Many of its subsidiaries are leaders in their respective businesses. Its non-banking units accounted for some 40% of the total profits last year," he said. KB Financial netted $3.6 billion in profit last year, becoming South Korea's first financial company to reach the milestone. During the first quarter of this year, its bottom line amounted to $1.18 billion, up 62.9% from a year earlier. In the beginning of 2023, KB Financial trailed far behind Hyundai Motor, ranking 18th with a market capitalization of $15.88 billion against the latter's $31.32 billion. Since then, however, KB Financial's share price has nearly doubled to beat Hyundai Motor, which lost more than 10% during the span. The group's flagship unit is KB Kookmin Bank, South Korea's largest lender. Also under its umbrella are KB Kookmin Card, KB Securities, KB Insurance and KB Life Insurance. "Investor sentiment has been buoyed by KB Financial's embrace of the value-up program designed to boost the stock price," NH Investment & Securities analyst Jung Jun-seop said in a phone interview. In addition, the company recently disclosed s stock buyback plan -- a measure that "seems to win the hearts and minds of investors at home and abroad. The stabilizing foreign exchange rate also helps it," he added. The value-up program is the Korean government's initiative aimed at addressing the so-called "Korea Discount," which refers to the tendency of Korean stocks to trade at low valuations despite strong fundamentals. The Seoul administration has tried to encourage enterprises here to strengthen their corporate governance and improve capital allocation to deal with the Korea Discount. KB Financial was recently honored with the top prize in a government-held value-up award ceremony. Last month, the entity canceled 12 million shares, which were valued at $740 million. In his recent report, SK Securities analyst Seol Yong-jin said that KB Financial has enjoyed a premium, thanks to its status as a business bellwether. "KB Financial has demonstrated an advantage over its competitors in terms of foreign investor inflows," he wrote. As of Wednesday, foreign investors' net purchases of KB Financial stood at around $870 million for the month. Still, challenges remain, according to some observers. "Like its smaller competitors, KB Financial has failed to make its presence felt in the global market. The outfit mostly focuses on the domestic market," Seoul-based consultancy Leaders Index CEO Park Ju-gun said. "In addition, KB Financial depends too heavily on interest profits. The lowered key interest rate is feared to weigh on the group at least in the short term," he predicted. The Bank of Korea slashed its benchmark interest rate by 0.25% points to 2.5% Thursday. It was the central bank's fourth cut in seven months since last October. Globally, KB Financial is also recognized as a proactive sponsor of professional golfers, who play on the LPGA Tour. It backs Park In-bee, who topped the podium in the Rio 2016 Summer Olympics.
Korea Herald
4 days ago
- Business
- Korea Herald
Bank stocks rally as stronger won boosts capital ratios
Shares of South Korea's largest financial service providers — Hana, Woori, KB, and Shinhan — surged Tuesday, driven by expectations of stronger shareholder returns supported by improved capital adequacy. Hana Financial Group shares rose as high as 70,700 won ($57.57) during intraday trading, marking the highest price since its transition to a holding company in December 2005. The stock later trimmed some gains and closed at 70,100 won. Woori Financial Group also saw its shares hit a record high of 18,310 won during trading, the highest since becoming a holding company in January 2019, before closing daytime trading at 18,290 won. Other major financial service providers posted strong gains in stock prices as well. On Monday, KB Financial Group shares climbed to 102,000 won, approaching its all-time high of 103,900 won recorded on Oct. 25. With this rally, the firm's market capitalization reached 40.13 trillion won, making it the fifth-largest company on the local stock market, outrunning market giants such as Hyundai Motors and Hanwha Aerospace. It was the first time in nearly 15 years for KB to take the No. 5 spot since March 2010. However, as of Tuesday afternoon, KB shares edged down slightly and wrapped up trading at 101,900 won, dropping the company to sixth place in market cap, overtaken by Hanwha Aerospace, which stood at 41.95 trillion won. Shinhan Financial Group shares also posted a strong gain, closing at 56,500 won — a steep climb from 42,500 won on April 9. The stock's previous high stands at 64,600 won logged on Aug. 30. The recent rally in bank stocks is largely attributed to the strengthening of the Korean won. The currency appreciated into the 1,360 won per dollar range this week, recovering more than 100 won from its April low of nearly 1,490 won. On Tuesday, the value of the won was quoted at 1,369.5 per dollar when the daytime trading closed. A stronger won boosts the Common Equity Tier 1 (CET1) ratio, a key indicator of banks' capital adequacy, thereby allowing financial firms greater flexibility in enhancing shareholder returns. The improved capital position comes alongside solid earnings. The four major financial groups recorded a combined net profit of 4.92 trillion won in the first quarter of 2024, the highest Q1 performance on record, surpassing the 4.91 trillion won posted in Q1 2023. According to market tracker FnGuide, the firms are projected to post a combined net profit of 17.64 trillion won this year, up 6.8 percent year-on-year. "Considering the banks' profitability, even with increased treasury share buybacks, the CET1 ratio is still expected to improve," said Choi Jeong-wook, an analyst at Hana Securities. "Share prices of global banks tend to track the scale of their treasury share repurchases."
