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Photo = DGB Financial Group |
[Alpha Biz= Kim Sangjin] DGB Financial Group is expected to report a significant decline in its 2023 net profit, with projections suggesting it will fall to around 2 trillion won.
According to financial data provider FnGuide on Sunday, the average analyst forecast for DGB Financial’s net profit attributable to controlling shareholders in 2023 is 299.7 billion won, the lowest since 2016, when it was 287.7 billion won. This represents a decrease of over 800 billion won compared to the previous year’s net profit of 387.8 billion won.
The group’s fourth-quarter net profit is expected to be 55.3 billion won, half of the 102.6 billion won recorded in the previous quarter, but an improvement from the 36.9 billion won loss in the fourth quarter of the previous year. If the forecasted results are accurate, DGB Financial will experience a third consecutive year of declining profits, following its record-high net profit of 503.1 billion won in 2021.
The financial sector believes that DGB Financial’s core affiliate, iM Bank, has grown primarily through loans, but the continued weakness in its securities division is expected to impact the group’s overall performance. iM Securities has been struggling due to weaker market sentiment following increased volatility and the deteriorating situation in real estate project financing (PF), which led to higher provisions for bad debts, reducing profitability.
Additionally, the group’s bank performance is expected to be affected by the interest rate gap between loans and deposits. Banks have maintained high loan interest rates following the financial authorities' restrictions on household loans in the second half of last year, while reducing interest rates on savings and deposits due to a decline in the base rate.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
