Meritz Securities "JB Financial Group, profitability, management needs more growth."

[Korea goyounghun financial newspaper reporters - saying the need to focus on profitability rather than growth management Meritz Investment Bank securities for 13 days JB Financial Group maintained a fair value of ₩ 7,300 to BUY.

The fourth quarter shareholder net income of JB Financial Group, this figure is 6.7 billion won, down 70.6% YoY and 83.4% QoQ.

Meritz Investment Bank Securities Eun Kyung Wan researchers' 4Q11 results feature is summarized as a group margins and Jeonbuk Bank Doosan Infracore China Corporation related to 14.5 billion won, livestock mortgage loans 9.4 billion won, including a one-time provision 23.9 billion won transference, early retirement costs 37 billion won occurrence, including the "he" she was diagnosed drop Kwangju bank and Jeonbuk bank of margin credit card mileage Accumulation rate was greater the impact of deposit margins of the raised and rapid asset growth. "

The researchers "sector the lowest capital point percentage is needed strategies for profitability defensive rather than aggressive loan growth in that it continues," said "risk-weighted assets yield (RORWA) profitability through management, quality, improving capital ratios, etc. it is important to substantiate, "he said.

He added, "This year the expected shareholder net income is estimated at 172.3 billion won, we will continued to two consecutive years of 20% representation earnings growth," he said "Given the low level of value and size of the share buyback plan, including 15 billion won additional price downside risk it is considered a restrictive ".



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