Highest dividend of 3.7 trillion won in the history of the four major financial groups in Kochim… …

The highest dividend of 3.7 trillion won in the history of the four major financial groups… “More to increase”
Dividend capacity ↑ with the highest performance last year… Average dividend yield 6.3%
Holding companies “promoting various shareholder returns”… Dividend payout ratio target of 30%

The four major financial groups that announced their earnings last year decided to pay the largest dividend ever.

It is predicted that these financial groups will continue to expand their dividends in the future.

According to the financial industry on the 13th, the total dividends (including interim dividends) of the four major financial holding companies, KB, Shinhan, Hana, and Woori, according to the settlement of accounts last year reached a record high of 3.705 trillion won.

This is a 64% increase compared to 2020 (2.929 trillion won) when dividends were reduced in preparation for the financial shock caused by the COVID-19 crisis.

The dividend yield (based on the 2021 closing price) of the four major financial holding stocks due to the dividend expansion reached an average of 6.3%.

Hana Financial Group posted a dividend yield of 7.4% and Woori Financial Group showed a 7% dividend yield of 7.1%, while KB Financial Group and Shinhan Financial Group each had a dividend yield of 5.3%.

With the announcement of last year’s results, financial groups hinted that they would continue to strengthen shareholder return policies such as expanding the dividend payout ratio (dividend to net profit), regularizing quarterly dividends, and repurchasing and canceling treasury stocks.

It is interpreted as a strategy to increase investment attractiveness through a stable shareholder return policy amid a common perception that domestic financial group stocks are generally undervalued.

An official from KB Financial Group said in a conference call on the 8th, “As we have secured sufficient capital, we believe that we have room for steady shareholder return. “he said.

After the announcement of the results on the 10th, a Hana Financial official said, “If the Corona 19 is over and everything normalizes, of course, the dividend payout ratio will have to be higher than last year.” said.

The dividend payout is highly likely to continue its record high this year as well.

This is because financial holding companies have foretold to strengthen shareholder return policies, and interest income is expected to increase in the financial sector in the aftermath of a rise in interest rates.

The average (consensus) of the four major financial holding companies this year’s net profit (based on the controlling shareholder’s net profit), compiled by Infomax based on the forecast of securities companies, is 15.5 trillion won, which is expected to increase by 6% compared to last year’s performance.

Even if last year’s dividend payout ratio remains the same, the absolute dividend is highly likely to increase.

A senior official in the financial sector said, “Dividend stock investors tend to prefer a stable dividend flow.

[표] Dividend status of 4 major financial holding companies
┌─────┬─────────────┬─────────────┐
│ │ 2020 │ 2021 │
│ Category ├──────┬──────┼─────┬──────┤
│ │Dividend per share │ Total dividend │Dividend per share │ Total dividend │
│ │ (KRW) │ (KRW billion) │ │ (KRW billion) │
├─────┼──────┼──────┼──────┼──────┤
│ KB │ 1,770 │ 6,897 │ 2,940 │ 11,455 │
├─────┼──────┼──────┼──────┼──────┤
│ Shinhan │ 1,500 │ 8,038 │ 1,960 │ 10,468 │
├─────┼──────┼──────┼──────┼──────┤
│ One │ 1,850 │ 5,394 │ 3,100 │ 9,038 │
├─────┼──────┼──────┼──────┼──────┤
│ We │ 360 │ 2,600 │ 900 │ 6,544 │
├─────┼──────┼──────┼──────┼──────┤
│ Total │ – │ 22,929 │ – │ 37,505 │
└─────┴──────┴──────┴──────┴──────┘
※Source: Disclosure and performance announcement by each company

/yunhap news