BNK Financial Group (138930) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
BNK Financial Group is a Busan and South Gyeongsang province-based bank holding company built around two regional banks, Busan Bank and Kyongnam Bank, and rounded out by capital, securities, and savings-bank affiliates. Most of its profit comes from its banks' net interest margin (the spread between what they earn on loans and what they pay on deposits). Net profit attributable to controlling shareholders reached ₩815.0 billion in 2025, up 11.9% from a year earlier, and the first quarter of 2026 continued the momentum with net profit of ₩216.7 billion, a 26.1% year-on-year gain. What stands out lately is that the shares trade at about half of book value (a P/B of 0.52x) with a dividend yield in the 4% range, placing the stock in undervalued territory relative to earnings and assets. Yet bank results are sensitive to the direction of interest rates, the regional economy, and bad loans, so if these variables turn, earnings can wobble with them.
This page organises public market and filing data for information purposes. It is not a recommendation to buy or sell, nor investment advice. Metrics labelled “forward” are our own unverified estimates. Please verify with the original DART filings and decide at your own responsibility.
30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Banks” (Financials), a type typically read first through P/B.
Banks earn by putting capital to work through deposits and loans, so what matters is how much equity (net assets) they hold and how efficiently they use it, more than headline profit. That makes price-to-book (P/B) the first lens — but it should be read alongside ROE, which shows how much profit the equity generates.
Price against assets alone says little about where the cycle stands. Reading it together with price against this year's expected earnings shows how far profits have recovered.
This note explains how each sector is typically valued and is educational context only, not investment advice.
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 8.0% (controlling-interest basis). It is below the sector average.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Lotte Shopping 2.75% (corporate)
Controlling bloc incl. related parties 10.82%
With the controlling bloc holding 11%, ownership is dispersed, leaving room for control-related or activist dynamics.
Financial-group subsidiaries stake
| BNK Venture Investment | subsidiary | 100% |
🔎 In-depth analysis Reading
BNK Financial Group does not run banking operations itself; it is a holding company that owns and manages banks and financial affiliates. Its core subsidiaries are two regional banks, Busan Bank and Kyongnam Bank, whose home turf is the southeastern region of Busan, Ulsan, and South Gyeongsang. Added to these are BNK Capital (installment financing and leasing), BNK Investment & Securities, BNK Savings Bank, and BNK Asset Management. The way it makes money is simple. Its subsidiary banks take in deposits and lend to businesses and households, and interest income arises from the gap between loan interest and deposit interest (the net interest margin). On top of that, non-interest income such as card and fee revenue rounds out group profit. In short, the company's results essentially hinge on the loan volume and margins of its two regional banks, plus the risk that those loans go bad (credit costs).
The latest close is ₩14,920 and the market capitalization is ₩4.6 trillion. The price sits below its 20-day moving average (₩16,878) and below its 60-day moving average (₩17,175). 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 32.1, a neutral level. The one-month change is -19.2%, the three-month change is -17.7%, and the position relative to the 52-week high is -34.1%. Relative strength versus the KOSPI is 28 (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 27% of all stocks. Over the past three months it lagged the index by 2.5%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Starting with the valuation metrics, the signs of undervaluation are clear. The P/E ratio (how many times one year of earnings the price represents) is 5.68x, and the P/B (how many times book net assets the price represents) is 0.43x. A P/B of 0.52x means that if the company's net assets are worth ₩100, the share is priced at ₩52, so it trades at half of asset value. For bank stocks, which sit on large assets and capital, the standard approach is to read P/B alongside ROE. ROE (how much the company earns in a year on its equity) is 7.55%, on the lower side compared with large financial holding groups like KB and Shinhan or with JB Financial. That relatively modest profitability is the backdrop to the low P/B. The dividend is generous: a dividend per share of ₩735, a dividend yield of 4.03%, and a payout ratio (the share of net profit paid out as dividends) of 28.1%. Note that for a bank holding company, deposits and borrowings show up as large liabilities by the nature of the business, so the debt ratio and interest-coverage ratio should not be judged by the same yardstick as an ordinary manufacturer. A bank's soundness is assessed not by the debt ratio but by its capital ratios and its bad-loan ratio.
The earnings trajectory is recovering. Net profit attributable to controlling shareholders rose for three straight years, from ₩639.8 billion in 2023 to ₩728.5 billion in 2024 and ₩815.0 billion in 2025, a 2025 increase of 11.9%. Operating profit also climbed steadily, from ₩801.2 billion in 2023 to ₩902.7 billion in 2025. In particular, first-quarter 2026 net profit jumped 26.1% year-on-year to ₩216.7 billion, and on an operating-profit basis the gain was even larger at 37.5%. Banks typically have a strong seasonality in which interest income is recognized earlier and credit costs are lighter in the first quarter, so early-year results tend to be strong. It is therefore reasonable to expect the first-quarter growth rate to moderate somewhat rather than carry straight through for the full year. Even so, taken together with the double-digit growth of 2025 and the acceleration in the first quarter of 2026, this year's earnings are likely to step up another notch from last year. Reflecting that, the P/E on this year's expected earnings falls to the low-6.94x area, below the 6.94x on last year's earnings, which already embed the improvement. In other words, the current price looks cheap even on last year's earnings and cheaper still on this year's expected earnings.
Recent disclosures mix shareholder returns, capital management, and subsidiary risk. Through the electronic disclosure system, the company laid out a corporate-value enhancement plan, setting a goal of lifting the total shareholder-return ratio to 50% by 2027 and gradually raising ROE into the 8-9% range. The direction is to increase dividends each year while also carrying out share buybacks and cancellations. In June it held an investor briefing (IR) and voluntarily disclosed a sustainability report. On the capital side, a subsidiary issued a write-down contingent capital security (a bond recognized as capital). On the cautionary side, in early June a subsidiary disclosed a confirmed case of embezzlement and breach of trust. Given the nature of a regional-bank group, an individual incident is unlikely to move group profit materially on its own, but because it touches internal controls, the situation bears watching.
BNK Financial Group clearly has the character of a cheap, high-dividend regional financial holding group. Shares at half of book value, a dividend yield in the 4% range, and a P/E in the low-6.94x area on this year's expected earnings read as undervalued territory relative to earnings and assets. Add the company's official plan to raise the total shareholder-return ratio to 50% by 2027, and the appeal of shareholder returns through dividends and share cancellations grows. The earnings trajectory also points the right way, with three straight years of growth and double-digit acceleration in the first quarter of 2026. The favorable conditions are these: when loans keep growing, the net interest margin holds, and bad loans stay stable, the low P/B and high dividend translate directly into undervaluation appeal. The conditions that would weaken the case are equally clear. If market rates fall quickly and squeeze margins, or if a slowdown in the southeastern regional economy raises bad loans and credit costs in areas such as real-estate project financing, earnings get pressured. The fact that ROE is lower than at the large holding groups is also why the P/B may stay low for a long time. In sum, as long as rates, the regional economy, and asset quality hold up, the undervaluation and high dividend are strengths, but if these variables sour, both earnings and dividend capacity come under test together.
🔎 Valuation vs peers Undervalued
Compared against regional-bank holding groups (Busan/Gyeongsang and Jeonbuk) and large financial holding groups, with priority given to its position relative to regional peers (iM, JB, Woori).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| iM Financial Group | 6.40x | 0.45x | 7.13% |
| JB Financial Group | 7.49x | 0.89x | 12.10% |
| Woori Financial Group | 7.87x | 0.64x | 8.18% |
| Industrial Bank of Korea | 5.99x | 0.44x | 7.20% |
| KB Financial Group | 10.43x | 1.02x | 10.19% |
For a bank holding company, the standard is to read P/B and ROE together rather than P/E. BNK trades at a P/B of 0.52x, half of net assets. That is similar to fellow regional holding company iM (0.47x) and lower than JB (0.89x) and Woori (0.64x). Compared with large holding groups KB (1.09x) and Shinhan (0.88x), it sits distinctly lower. There is a reason for the discount, however: ROE of 7.55% is lower than JB (12%) or the large groups, reflecting a relatively weaker ability to generate returns on capital. On the dividend side the appeal is large. A dividend yield of 4.03% comfortably exceeds the roughly 2% of the large groups. A key point for the valuation call is that the 6.94x P/E on last year's earnings already embeds the double-digit profit growth of 2025. With first-quarter 2026 net profit accelerating 26%, the P/E on this year's expected earnings falls into the low-6.94x area. In other words, it looks cheap even on last year's basis and cheaper still on this year's expected results. On balance, even allowing for the weakness of a low ROE, we assess it as undervalued relative to asset value, earnings, and dividends.
Price history Close · MA20 · MA60
The latest close is ₩14,920 and the market capitalization is ₩4.6 trillion. The price sits below its 20-day moving average (₩16,878) and below its 60-day moving average (₩17,175). 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 32.1, a neutral level. The one-month change is -19.2%, the three-month change is -17.7%, and the position relative to the 52-week high is -34.1%. Relative strength versus the KOSPI is 28 (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 27% of all stocks. Over the past three months it lagged the index by 2.5%. 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 -2.48% / 6M -28.79% / 12M -47.03%
Key metrics Computed vs sector median
Valuation
The P/E of 5.68x is below the sector median (7.87x). The P/B of 0.43x is below the sector median (0.81x). Both metrics are low versus peers, so the price is not expensive relative to earnings and assets.
Profitability & financials
Return on equity (ROE) is 8.0%, in line with the sector average (9.0%). The debt ratio is 1405.4%, 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 | $562.8M | $615.3M | $634.1M | +3.06% ↓ slower |
| Net profit | $449.4M | $511.8M | $572.5M | +11.87% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | — | — | — | — | — |
| Operating profit | — | — | $562.8M | $615.3M | $634.1M |
| Net profit | — | — | $449.4M | $511.8M | $572.5M |
Operating profit rose 3.1% year over year. The pace of that profit growth is gradually easing.
Latest quarterly results Source
No recent quarterly results confirmed from DART.
Technical indicators Computed
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 4.9%, 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
- 2026-06-30IRCorporate-value enhancement plan disclosed — targets a 50% total shareholder-return ratio by 2027, a gradual lift in ROE into the 8-9% range, and a policy of expanding dividends alongside share buybacks and cancellationsStrengthens the medium-term direction toward greater shareholder returns. Raises expectations for enhanced shareholder value through dividend yield and share cancellations. Source
- 2026-06-12IRNotice of an investor briefing (IR) — a session for investors explaining results and management conditionsImproves near-term access to information. Communicates results and the shareholder-return plan. Source
- 2026-06-02UpdateConfirmed subsidiary embezzlement and breach of trust disclosed — an incident at an affiliated bank confirmed via electronic disclosureLimited impact relative to the size of group profit, but a cautionary matter for internal controls. Warrants monitoring. Source
- 2026-05-28FilingSubsidiary issues a write-down contingent capital security — a bond recognized as capital, issued to manage capital ratiosReinforces medium-term capital soundness. Contributes to maintaining capital ratios. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 net profit attributable to controlling shareholders | ₩815.0 billion | — | Confirmed | link |
| Q1 2026 net profit | ₩216.7 billion | — | Confirmed | link |
| P/B / dividend yield | PBR 0.43x / 4.03% (DPS ₩735) | — | Unverified | link |
| 2026 estimated net profit / forward P/E | approx. ₩910.0 billion / 6.2x | — | Unverified | — |
Recent filings Source
- 2026-06-09OwnershipOwnership-change filing
- 2026-06-02Embezzlement/breach disclosure
- 2026-05-28Earnings disclosure
- 2026-05-28Amended filing
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-28OwnershipOfficers'/major-shareholders' holdings 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.