汇丰银行-韩国银行业-korea banks 2q17 trends beating consensus again and again-20170721-hsbc.pdfVIP

21 July 2017   Korea Banks EQUITIES FIG 2Q17 trends: Beating consensus again and again Korea Beating consensus estimates for 6 consecutive quarters Sinyoung Park* despite +42% earnings revisions since May 2016 Analyst, Korea Financials The Hongkong and Shanghai Banking Corporation Limited, Seoul Securities Branch Earnings stability improving at Korean banks with sharply sinyoungpark@ +822 3706 8770 lower credit cost, better efficiency and solid margin trend Earnings quality was the strongest at KBFG, in our view * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations KBFG (Buy): 26% beat given the biggest NIM expansion and write-backs KBFG reported 2Q17 earnings of KRW990bn, beating consensus by 26% given the biggest NIM expansion (up another 6bps q-o-q), sharply lower credit cost (8bps) and stronger-than-expected non-bank earnings contribution (especially KB Insurance). In addition, recurring SGA cost dec