Jeju Bank is a regional bank whose customers are mainly Jeju households, sole proprietors, and small and mid-sized businesses, and which earns most of its profit from the spread between deposit and lending rates. As a subsidiary within the Shinhan Financial Group, its funding and credit standing can reasonably be viewed in the context of the parent group. Its May 15 quarterly report disclosed Q1 2026 operating profit of ₩0.9 billion and net profit of ₩4.2 billion, and with net profit rising for a third straight year and a P/B of 0.60x, the stock sits in undervalued territory on an asset basis. What stands out recently is that, while the asset-based discount and the parent-group backing offer support, ROE of around 2% is well below that of peer regional banks and financial holding companies, pointing to low efficiency in deploying capital, and this year's expected profit is roughly in line with last year's, so the assessment splits depending on how one weighs asset value against the pace of any profitability recovery.
At-a-glance assessment financial health · growth · profitability · valuation
- For financial companies, debt and interest costs are large by the nature of the business, so the debt ratio and interest coverage cannot be read on the same yardstick as an ordinary company.
- ROE is 2.1% (controlling-interest basis). It is below the sector average.
- The P/E sits above the sector median, reflecting elevated expectations.
Ownership & governance As of 2025-12-31
Largest shareholder Shinhan Financial Group 64.01% (corporate)
Controlling bloc incl. related parties 64.01%
With the controlling bloc holding 64%, control is very secure but the free float is thin.
🔎 In-depth analysis
- A bank takes deposits from customers and lends that money out to businesses and individuals, earning most of its profit from the gap between the lending interest it receives and the deposit interest it pays (the deposit-loan spread).
- Jeju Bank is a regional bank serving mainly Jeju households, sole proprietors, and small and mid-sized businesses, so a defining feature is that its loan assets and operating base are concentrated in the Jeju economy (tourism, services, and local small businesses).
- Fee income from services such as remittances, foreign exchange, and cards adds a supplementary layer on top.
- In terms of governance, it is a subsidiary within the Shinhan Financial Group, so it is natural to view its funding and credit standing in the context of the parent group.
- The latest close is ₩9,320 and the market cap is ₩352.3 billion.
- The price sits below both the 20-day line (₩10,527) and the 60-day line (₩11,386).
- Trading below both its short- and medium-term moving averages, the trend is on the subdued side.
- The RSI (an auxiliary gauge that measures upward versus downward momentum over the past 14 days on a 0-100 scale) is 34.2, a neutral level.
- The one-month change is -26.9%, the three-month change is -22.7%, and the stock sits -51.4% below its 52-week high.
- Relative strength versus the KOSPI is 7 (on a 1-99 scale, computed from returns against the index over the past year with more recent performance weighted more heavily; higher means stronger than the market).
- That places it around the top 94% of all stocks by strength.
- Over the past three months it has lagged the index by 41.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On a confirmed annual basis, the P/E ratio (how many times one year of net profit the share price represents) is 25.29x, and the P/E on this year's expected profit is also 27.8x, both of which look high.
- That said, this reflects not an expensive share price but a small profit figure in the denominator.
- With ROE (how much is earned in a year on shareholders' equity) at just 2.1%, earnings per share are small, and that pushes the P/E multiple up even at the same share price.
- Conversely, the P/B (how many times net assets the share price represents) is 0.54x, below 1x, meaning the share price sits below the company's book net assets.
- The debt ratio exceeds 1,000% on paper, but because a bank's customer deposits are booked as liabilities in accounting terms, this figure should not be read by the same yardstick as a manufacturer (for the same reason, the diagnostics do not apply general standards to debt and interest metrics here).
- In short, this is the classic profile of a low-ROE bank: a high earnings multiple and a low asset multiple, with profitability as the key variable.
- Net profit rose for three straight years, from ₩5.1 billion in 2023 to ₩10.4 billion in 2024 and ₩13.9 billion in 2025.
- Operating profit jumped sharply from ₩2.6 billion in 2023 to ₩11.4 billion in 2024, then eased 13.0% to ₩9.9 billion in 2025, a pattern of a large recovery followed by a pause to catch its breath (operating revenue, the equivalent of the top line, cannot be confirmed as the base has no figure for it).
- In Q1 2026, operating profit was ₩0.9 billion (-25.3% year on year) while net profit was ₩4.2 billion (+45.0%), so the operating line shrank while net profit grew, with the two moving in opposite directions.
- The P/E on this year's expected profit is 27.8x, almost the same as last year's confirmed figure (27.9x), which paints a picture of this year's profit continuing at a level similar to last year's.
- In other words, this is not a phase where a large profit leap is signaled, and the point to watch is whether the net-profit uptrend accumulates steadily quarter by quarter.
- Multi-year profit is trending up, but quarterly volatility in the operating line remains, so the picture grows clearer as stable accumulation is confirmed.
- Recent disclosures fall into confirmed earnings and funding.
- The May 15 quarterly report disclosed confirmed Q1 2026 results (operating profit of ₩0.9 billion and net profit of ₩4.2 billion).
- Separately, across April and May, shelf registration statements, prospectuses, and securities issuance result reports were filed repeatedly, which is the routine procedure by which a bank raises operating funds through bond issuance.
- Because bond issuance is an everyday funding tool for a bank, rather than treating it in itself as good or bad news, the key is to track how the size of the funding and interest-rate conditions feed through into interest expense.
- The strengths are clear.
- The share price relative to net assets (P/B of 0.60x) is below 1x, placing the stock in undervalued territory on an asset basis; the funding and credit foundation of belonging to the Shinhan Financial Group is solid; and net profit has risen for three straight years.
- Worth noting is that ROE, in the 2% range, falls well short of peer regional banks and financial holding companies (typically 7-12%), pointing to low efficiency in deploying capital, which is why the earnings multiple looks high.
- With this year's expected profit at a level similar to last year's, a large near-term profit leap is hard to expect.
- Taken together, the asset-based discount and the parent-group backing provide support, and the stock strengthens as ROE recovers and quarterly profit accumulates steadily, while it weakens if ROE stays low and operating-line volatility persists.
- This is a stock whose assessment splits depending on how one views asset value and the pace of the profitability recovery.
🔎 Valuation vs peers Inconclusive
In keeping with the substance of a bank that takes deposits and deploys them as loans, state-run and regional banks and regional financial holding companies were used as the peer set, with P/E, P/B, and ROE computed at the current price via the site's peers tool.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Industrial Bank of Korea | 6.03x | 0.45x | 7.44% |
| BNK Financial Group | 6.56x | 0.50x | 7.55% |
| JB Financial Group | 6.60x | 0.79x | 12.01% |
| iM Financial Group | 6.26x | 0.45x | 7.14% |
(a) Position versus peers: regional banks and financial holding companies sit in the range of a P/E of 6-7x, ROE of 7-12%, and P/B of 0.5-0.8x, and while Jeju Bank's P/B (0.72x) falls within that band, its ROE (2.1%) is not even half. (b) Premium/discount: on P/E alone it is 5x higher than peers and looks like a premium, but this is a multiple inflated by a small denominator when profit is at a trough, so it is hard to read as a genuine premium; on a P/B basis it is instead at a discount below net assets. (c) Limits of trailing figures and the forward basis: last year's confirmed P/E is a value from an earnings inflection phase and hard to use as is, and with no official company outlook, one can only reference an approximation from the DART Q1 confirmed results multiplied by a seasonality ratio (this year's net profit around ₩13.5 billion). Until an ROE recovery is confirmed, it is hard to conclude either way on P/E or P/B alone, so it is left Inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | — | approx. ₩0.6 billion | approx. ₩3.7 billion |
Price history Close · MA20 · MA60
The latest close is ₩9,320 and the market capitalization is ₩352.3 billion. The price sits below its 20-day moving average (₩10,527) and below its 60-day moving average (₩11,386). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 34.2, a neutral level. The one-month change is -26.9%, the three-month change is -22.7%, and the position relative to the 52-week high is -51.4%. Relative strength versus the KOSPI is 7 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 6% of all stocks. Over the past three months it lagged the index by 41.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -41.64% / 6M -51.52% / 12M -71.22%
Key metrics vs whole-market median
Valuation
The P/E of 25.29x is above the whole-market median (13.81x). The P/B of 0.54x is below the whole-market median (1.15x).
Profitability & financials
Return on equity (ROE) is 2.1%, below the whole-market average (5.0%). The debt ratio is 1239.0%, but for financial firms deposits and insurance liabilities count as debt, so it cannot be read on the same yardstick as an ordinary company.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | — | — | — | — |
| Operating profit | $1.7M | $7.6M | $6.6M | -13.03% ↓ slower |
| Net profit | $3.4M | $6.9M | $9.2M | +33.74% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | $1.7M | $7.6M | $6.6M |
| Net profit | — | — | $3.4M | $6.9M | $9.2M |
Operating profit fell 13.0% year over year. The decline widened.
Latest quarterly results
No recent quarterly results confirmed from DART.
Technical indicators
What stands out
- —
Points to watch
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report disclosed - operating profit ₩0.9 billion (-25.3% year on year), net profit ₩4.2 billion (+45.0%)Short term: the operating line contracted while net profit rose, so the two items moved in opposite directions. Medium term: whether Q1 profit carries through to the full year is the key variable for valuation. Source
- 2026-05-26FilingSecurities issuance result report - report on the outcome of a bond issue to raise operating fundsShort term: a routine periodic disclosure in the funding process, so its directional signal is weak. Medium term: worth confirming whether the funding size and interest rates feed through into future interest expense. Source
- 2026-05-22FilingProspectus (shelf registration) and shelf registration supplementary documents filed - establishing the basis for additional funding within the bond issuance limitShort term: routine procedure that recurs under the shelf registration framework. Medium term: material that shows the bank's standing capacity to raise funds. Source
- 2026-05-22FilingReport on holdings of specified securities by officers and major shareholders - reporting changes in insider holdingsShort term: the holding change itself is a minor reporting disclosure. Medium term: a supplementary clue for checking whether there are changes in the major-shareholder governance structure. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-05-26Earnings disclosure
- 2026-05-22Disclosure
- 2026-05-22Disclosure
- 2026-05-22OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-20Disclosure
- 2026-05-15Amended filing
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Earnings disclosure
- 2026-05-08Disclosure
- 2026-05-08Disclosure
- 2026-04-27Earnings disclosure
- 2026-04-24Disclosure
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.