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JONBUR Research · Update note

Industrial Bank of Korea · 024110 · Banks

Industrial Bank of Korea: Q3 Preliminary Results Show Flat Profit Despite 78.9% Jump in Reported Revenue

Why this report

Written after:

Industrial Bank of Korea reported preliminary Q3 2026 consolidated results: operating profit of ₩1.0T (up 5.6% y/y) and net income of ₩771.2B (up 2.7% y/y), while nine-month net income is down 2.0%. The headline revenue surge does not translate into profit growth, so the earnings picture stays broadly in line with the earlier report's flat-profit thesis.

Written Oct 26, 2026 · Data as of Oct 23, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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What happened

In a preliminary consolidated filing dated 2026-10-26, the bank reported Q3 2026 (July to September) revenue of ₩10.5T, up 78.9% from ₩5.9T a year earlier and up 8.3% from ₩9.7T in Q2. Operating profit was ₩1.0T, up 5.6% y/y and 12.7% q/q. Pre-tax profit from continuing operations was ₩1.1T, up 5.2% y/y. Net income was ₩771.2B, up 2.7% y/y and 11.8% q/q. Net income attributable to owners of the parent was ₩767.8B, up 2.8% y/y.

For the nine months to September, revenue was ₩31.2T, up 31.0%. Operating profit was ₩2.9T, down 1.7%. Net income was ₩2.2T, down 2.0%, and parent-owner net income was ₩2.2T. The filing notes that preliminary figures may differ from final ones. The filing does not explain why revenue rose so much faster than profit. Earlier revenue figures are not available in our data, so we cannot compare this with a longer revenue history.

As background, the bank also filed a share cancellation decision on 2026-10-23. The size is not known from the data we have.

What it changes for the thesis

The previous report described stable profits, with net income of about ₩2.6T to ₩2.7T a year, and ROE drifting lower from 8.4% in 2023 to 7.4% in the trailing period. These results fit that picture. Q3 profit rose modestly y/y, but the nine-month figures are slightly below last year, so earnings have still not grown. The 78.9% revenue jump looks dramatic, but profit did not follow, so it does not suggest an improvement in earnings power. The report's open question, why the shares trade at about 0.4x book, is not answered by this filing. The price is ₩19,460, down 4.6% over one month and 38.2% below the 52-week high of ₩29,550 at this price. Foreign ownership slipped from 13.9% to 13.2% over 60 days, and foreign investors were net sellers over the last 20 days.

What it changes for the valuation

The previous report had no model fair value. The model now gives a model estimate based on the assumptions shown of ₩22,446 (bear), ₩37,791 (base) and ₩57,788 (bull) per share, using an excess-return method with a 9.6% rate on data to H1 2026. This is not a price target. Against the ₩19,460 close, even the bear case is above the current price, but the range is wide, and the estimate rests on the assumption that returns persist. It has not yet incorporated these Q3 figures. Current multiples are a P/E of 5.9, a P/B of 0.4 and a dividend yield of 5.4%, versus 6.0, 0.4 and 5.3% in the previous report. Peer multiples in our data are much higher (P/E 12.0 to 29.5), though the peers are much smaller and mostly different kinds of banks.

Closing view

The Q3 filing confirms steady, flat profits rather than a change in direction. Quarterly profit is up modestly, but the nine-month totals are slightly lower and the revenue surge has not reached the bottom line. The model estimate is well above the market price, but it depends on the assumptions shown and is not a forecast. The share cancellation decision may matter for per-share figures, but its size is unknown. The evidence remains mixed rather than conclusive.

Model estimate of fair value

Bear
₩22,446
+17%
Base
₩37,791
+97%
Bull
₩57,788
+202%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the P/B vs ROE (excess return) model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 9.6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 26, 2026Update noteEarningsIndustrial Bank of Korea: Q3 Preliminary Results Show Flat Profit Despite 78.9% Jump in Reported Revenue
  2. Oct 13, 2026InitiationIndustrial Bank of Korea: Steady Earnings, Low Book Multiple, Shares Below 52-Week High

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information