How regional financial groups defy slump with upbeat outlook
Despite an economic downturn weighing on regional financial holding companies, brokerage firms have begun raising their target prices this year, industry officials said Monday. Regional banks, the core subsidiaries of these groups, have been grappling with rising delinquency rates, particularly in the construction sector. Meanwhile, a continuing population decline in regional areas has limited the reach of their offline retail networks. Yet analysts are revising forecasts upward, citing improved earnings driven by lower credit loss provisions, stronger shareholder return policies and new business initiatives aimed at diversification. According to financial tracker FnGuide, securities firms have issued 27 target price upgrades for BNK Financial Group, 24 for JB Financial Group and 30 for iM Financial Group so far this year. The upgrades reflect growing investor confidence in firmer earnings fundamentals in the first half of this year. BNK Financial Group, based in Busan, posted the highest net profit among the top three at 475.8 billion won ($345.7 million) — though that marked a 3.4 per
Aug 4, 2025By Lee Yeon-woo