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DGB Financial Headquarters. (Photo = Yonhap News) |
[Alpha Biz= Reporter Kim Jisun] According to financial information provider FNGuide on the 15th, DGB Financial Group's consensus for Q2 net profit stands at 636 billion won, significantly lower than the previous year's 2Q figures of 1.509 trillion won, marking a decline of more than half. In contrast, the four major financial groups (KB, Shinhan, Hana, Woori) are expected to see a 6.14% increase in Q2 net profit to 4.6455 trillion won compared to 4.3766 trillion won from the same period last year.
Stock price movements have shown mixed trends. According to the Korea Exchange, KB Financial Group's closing price rose by 7.6% from 79,600 won on the 1st to 85,700 won on the current day. Similarly, Shinhan Financial Group increased from 47,850 won to 51,800 won (8.2%), Hana Financial Group from 62,000 won to 62,200 won (2.9%), and Woori Financial Group from 14,400 won to 14,750 won (2.4%). In contrast, DGB Financial Group's closing price declined by 1.3%, from 7,980 won to 7,870 won during the same period.
While expectations for Q2 earnings surprises have boosted most financial stocks recently, DGB Financial Group's stock has seen a decline. Major financial stocks have been bolstered by expectations of a possible fourth-quarter interest rate cut, the government's 'Value Up Program,' and financial institutions' shareholder return policies.
Conversely, the outlook for DGB Financial Group's Q2 earnings remains bleak. This is primarily due to the potential need for increased provisions for credit losses stemming from real estate project financing within DGB Financial's subsidiaries. Provisions are set aside from profits to cover potential losses, thus an increase in provisions leads to a decrease in earnings.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
