The Industrial Bank of Korea (IBK) is a state-owned bank whose core business is financing small and medium-sized enterprises, with most of its income coming from net interest income earned on the gap between deposit and lending rates; as of Q1 2026 its SME loan balance was ₩264.2 trillion, holding the No. 1 market share of about 24.4% of the domestic SME lending market. April preliminary results confirmed Q1 consolidated net profit of ₩753.4 billion, and quarterly dividends, for which the bylaw amendment and Financial Services Commission approval are complete, await only a board resolution and are expected to begin as early as this year. The recent picture is two-sided: the strengths are the lowest multiple and highest dividend yield (5.3%) among bank stocks, the No. 1 SME lending share, and the coming quarterly dividend, while the cautions are a lower ROE than the large banking groups, the fact that as a state bank policy roles may take priority, and margin pressure in a rate-cutting phase.
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 7.4% (controlling-interest basis). It is above the sector average.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Ministry of Economy and Finance 59.5% (individual)
Controlling bloc incl. related parties 68.5%
With the controlling bloc holding 68%, control is very secure but the free float is thin.
🔎 In-depth analysis
- The Industrial Bank of Korea (IBK) is a state-owned bank whose core business is financing small and medium-sized enterprises.
- How it earns money is simple.
- It takes deposits from customers and lends to SMEs and small merchants at a higher rate, and the net interest income from that rate gap makes up most of its income.
- To this it adds non-interest income such as cards, foreign exchange, and fees.
- As of Q1 2026 its SME loan balance was ₩264.2 trillion, about 24.4% of the domestic SME lending market, a No.
- 1 share that no commercial bank can easily match.
- As a state-owned bank whose largest shareholder is the government, it plays the role of maintaining the policy-driven supply of funds even when a downturn leads ordinary banks to cut SME lending.
- In other words, 'SME specialist plus policy finance' is this company's identity.
- The recent closing price is ₩20,500 and the market cap is ₩16.3 trillion.
- The price sits below its 20-day moving average (₩20,996) and below its 60-day average (₩21,275).
- Trading below both its short- and medium-term moving averages, the trend is on the soft side.
- The RSI (a supporting gauge that scores the strength of gains versus losses over the past 14 days on a 0-100 scale) is 46.0, a neutral level.
- The one-month change is -1.9%, the three-month change is -4.0%, and the position relative to the 52-week high is -28.2%.
- Relative strength versus KOSPI is 32 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it near the top 69% of all stocks by strength.
- Over the past three months it lagged the index by 25.0%.
- It is best to read the chart alongside trading volume and the dates of disclosures.
- Its valuation metrics are low even among bank stocks.
- The P/E (how many times a year's earnings the price is worth) is 6.03x and the P/B (how many times the book value of net assets the price is worth) is 0.45x.
- Because a bank's structure books deposits as liabilities, its debt ratio comes out very high, so it cannot be viewed as heavily indebted by an ordinary manufacturing yardstick; instead it should be judged by ROE (how much is earned in a year on equity) and P/B.
- ROE is 7.4%, somewhat below the large banking groups (8-10%), one reason its P/B is set lower.
- Even so, a P/B of 0.43x is depressed even after allowing for that ROE gap.
- Asset quality is sound, with a substandard-and-below loan ratio (the share of loans with possible impairment) of 1.28% and a credit cost ratio of 0.43%, both stable.
- The dividend yield is 5.3%, among the highest of any bank stock.
- Net profit over the past three years held steady with little swing (₩2.67T → ₩2.64T → ₩2.71T), and operating profit was similar (₩7.6T → ₩7.5T → ₩7.9T) — the look of a mature bank that piles up profit steadily rather than growing explosively.
- Q1 2026 net profit was ₩753.4 billion, down 7.5% year on year, due to two one-off and base effects.
- First, last year's Q1 was a record result, so the comparison base was high; second, a spike in the won-dollar exchange rate at end-March produced a foreign-exchange loss.
- The core business's net interest income actually rebounded as funding costs fell, and the net interest margin (NIM) rose to 1.60%, up 3bp from the prior quarter.
- In other words, the Q1 profit decline looks closer to a non-cash and exchange-rate swing than a deterioration in the business.
- For the full year, a base-rate cut is a factor pressing margins, but with the SME loan balance up ₩2.4 trillion from the start of the year, assets are steadily growing and quality is stable, so profit is likely to trace a path similar to last year's (a slight adjustment).
- In that case, the P/E on this year's earnings is about 5.9x, not much different from today's low valuation.
- In 2026 the disclosures have centered on a routine flow.
- The April preliminary results disclosure confirmed Q1 net profit (₩753.4 billion consolidated), and in March the record date for the shareholder register was set for the 2025 year-end dividend (₩1,048 per share).
- The notable change is the introduction of quarterly dividends: the bylaw amendment and Financial Services Commission approval are complete, with only a board resolution remaining, and quarterly dividends are expected to begin as early as this year.
- In May and June, several investor-briefing (IR) notices came out, continuing communication with shareholders and investors.
- In addition, there were routine governance-related disclosures such as an outside-director appointment filing and the results of the regular general shareholders' meeting.
- The strengths are clear.
- Among bank stocks it has the lowest P/E and P/B and the highest dividend yield (5.3%), so relative to earnings and net assets it sits in undervalued territory.
- The No.
- 1 SME lending share, the business stability that comes from its status as a state bank, sound asset quality, and the strengthened shareholder returns of a coming quarterly dividend are also favorable.
- There are, however, points to weigh alongside these.
- A lower ROE than the large banking groups, the fact that as a state bank whose largest shareholder is the government its policy role may take priority, and the potential for margins to be squeezed in a base-rate-cutting phase all mean the low valuation stems in part from structural reasons.
- In sum, it is strong from a perspective that prizes dividends and asset quality and favors stability over margins, and less appealing from a perspective that expects rapid profit growth or a high ROE.
🔎 Valuation vs peers Undervalued
Compared with domestic listed banks and banking groups closest in business character; IBK is a pure bank given its overwhelming SME lending weighting, while the others are diversified banking groups.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Woori Financial Group | 7.06x | 0.61x | 8.67% |
| KB Financial Group | 10.42x | 1.03x | 9.88% |
| Shinhan Financial Group | 10.02x | 0.86x | 8.58% |
Within the peer set, its P/E (5.78x) and P/B (0.43x) are the lowest and its dividend yield (5.3%) is the highest. Its 7.4% ROE, below the large banking groups (8-10%), is one reasonable reason its P/B is set lower, but even accounting for the ROE gap, a P/B of 0.43x carries a large discount to peers. The structural background of the discount is that, as a state bank whose largest shareholder is the government, its policy-finance role may take priority over profitability, and its relatively low ROE. The low trailing P/E (5.78x) for last year is a result of steadily maintained earnings, and on the forward P/E for this year's estimated earnings (about 5.9x) it still holds a cheap position versus peers. On balance, we see it in undervalued territory, backed by asset quality and dividends.
Price history Close · MA20 · MA60
The latest close is ₩20,500 and the market capitalization is ₩16.3 trillion. The price sits below its 20-day moving average (₩20,996) and below its 60-day moving average (₩21,275). 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 46.0, a neutral level. The one-month change is -1.9%, the three-month change is -4.0%, and the position relative to the 52-week high is -28.2%. Relative strength versus the KOSPI is 32 (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 31% of all stocks. Over the past three months it lagged the index by 25.0%. 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 -24.96% / 6M -39.27% / 12M -53.72%
Key metrics vs whole-market median
Valuation
The P/E of 6.03x is below the whole-market median (13.81x). The P/B of 0.45x is below the whole-market median (1.15x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Profitability & financials
Return on equity (ROE) is 7.4%, above the whole-market average (5.0%). The debt ratio is 1373.5%, 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 | $5.0B | $5.0B | $5.2B | +5.60% ↑ faster |
| Net profit | $1.8B | $1.8B | $1.8B | +2.52% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | $5.0B | $5.0B | $5.2B |
| Net profit | — | — | $1.8B | $1.8B | $1.8B |
Operating profit rose 5.6% year over year. Profit is growing at an accelerating pace.
Latest quarterly results
No recent quarterly results confirmed from DART.
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 5.1%, is on the high side.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-24EarningsQ1 2026 consolidated preliminary results disclosed. Net profit of ₩753.4 billion (-7.5% year on year). The main causes are a one-off foreign-exchange loss and the base effect of last year's record Q1, while the net interest margin rose 3bp from the prior quarter to 1.60%.The near-term profit decline is centered on non-cash and exchange-rate factors, hard to read as damage to the core business. Still, the margin trend needs watching through the year in a base-rate-cutting phase. Source
- 2026-03-20DividendDecision on the record date (register closing) for the 2025 year-end cash and in-kind dividend. Dividend of ₩1,048 per share confirmed, with a payout ratio of about 35%.Sustained shareholder-return appeal, keeping the dividend yield in the 5% range. Highlights dividend stability over the medium term. Source
- 2026-04-17FilingAdvance notice of the earnings disclosure (notice disclosure). Announces the quarterly and annual earnings-release schedule in advance to improve investor predictability.Little direct price impact, but positive in terms of transparency around the earnings-disclosure schedule. Source
- 2026-06-09IRInvestor-briefing (IR) notice disclosure. Continues communication with shareholders and investors on results and management status.Favorable in terms of reducing information asymmetry. A channel for communicating shareholder-return policy, including the introduction of quarterly dividends. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 consolidated net profit | ₩2.711 trillion | approx. ₩2.72 trillion | Confirmed | link |
| Q1 2026 consolidated net profit | ₩753.4 billion | ₩753.4 billion | Confirmed | link |
| 2025 dividend per share (DPS) | ₩1,048 | ₩1,048 | Confirmed | link |
| Estimated 2026 net profit (forward) | approx. ₩2.65 trillion(self-estimate) | — | Unverified | link |
Recent filings
- 2026-06-09Disclosure
- 2026-06-09Disclosure
- 2026-05-29Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-04-24EarningsFair-disclosure notice
- 2026-04-22Disclosure
- 2026-04-17EarningsEarnings disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-25Disclosure
- 2026-03-20DividendCash/stock dividend decision
- 2026-03-18PeriodicAnnual business report
- 2026-03-11Audit report
📖 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.