[THE INVESTOR] Hana Financial Group’s third-quarter performance will be above market expectations and the stock price is still underestimated, said Mirae Asset Securities on Oct. 12.

The securities firm maintained a “buy” recommendation and raised the target price to 42,000 won (US$37.39).

The finance firm’s “third-quarter net profit will surge 38 percent to 352.4 billion won on-year,” said Kang Hye-seung, an analyst at Mirae Asset.

“Following the drop in exchange rate from last quarter, 45 billion won translation gain from non-monetary assets in foreign currency has been recognized and contributed to the figure,” she explained.

 

Although there still is a pressure to lower the loan interest rate, it is defending well by increasing core deposits and decreasing loans to conglomerates in businesses sensitive to economy, and the appropriation fund will be less than expected as well, noted the analyst.

By Hwang You-mee (glamazon@heraldcorp.com)