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Archives: CreditSights Issuer List
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Fundamental View
AS OF 12 Nov 2025UOB has solid stand-alone credit profile and benefits from the high likelihood of support from the government of Singapore, where it is one of the three major local banks.
The bank is more focused on Singapore and Southeast Asia than on Greater China; its traditional strengths are the SME and retail sectors, although its large corporate book is now over 60% of loans.
UOB has been conservatively managed with a sound risk profile, a strong focus on liquidity and a long track record of relatively good performance. However, its 3Q25 results showed some softness with substantial provisions set aside for HK and US CRE.
Business Description
AS OF 12 Nov 2025- UOB was established in 1935 as a Chinese family-owned bank catering to the Hokkien (Fujian) community, Singapore's largest Chinese ethnic sub-group. The Wee family owns about 18% of the shares. A further 5.2% is held by the Lien family which previously controlled Overseas Union Bank, which UOB merged within 2001. The Wee family has significant real estate and hospitality interests in Singapore and regionally.
- UOB's main markets are Singapore and Malaysia where its presence dates back to before Singapore's independence. It expanded through acquisitions in Thailand (Bank Radanasin and Bank of Asia) and Indonesia (Bank Buana), and more recently bought over Citi's consumer franchise in Malaysia, Thailand, Indonesia and Vietnam.
- Franchise strengths are in SME and consumer lending. Building & construction accounts for 27% of loans, followed by housing at 24%, financial institutions at 11% and general commerce at 11% at 2Q25.
- Loans by geography comprise Singapore at 50% of loans, Greater China at 14%, Malaysia at 10%, Thailand at 8%, and Indonesia at 3% at 2Q25.
Risk & Catalysts
AS OF 12 Nov 2025UOB has a greater focus on Southeast Asia than its Singapore bank peers, which leaves it open to more asset quality risk in a downturn / high interest rate environment. It has 8% of its loan book in Thailand, where we are cautious about macroeconomic conditions.
The bank has benefited more from the final Basel III rules implementation than its peers – its CET 1 ratio was previously the lowest among the three but now aligns with peers.
It posted a large profit decline in 3Q25 which was a negative surprise. Although the improved coverage ratios following the preemptive provision recognition are welcome, its NPL coverage ratio remains 40-60 ppt behind peers, and we did not find reassurance from its credit cost outlook. Topline performance also lagged peers.
Key Metric
AS OF 12 Nov 2025| SGD mn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| PPP ROA | 1.23% | 1.31% | 1.52% | 1.51% | 1.44% |
| ROA | 0.92% | 0.99% | 1.19% | 1.19% | 0.81% |
| ROE | 10.2% | 11.9% | 14.2% | 13.7% | 9.0% |
| Equity to Assets | 9.3% | 8.6% | 8.8% | 9.2% | 8.9% |
| CET1 Ratio (fully-loaded) | 13.5% | 13.3% | 13.4% | 15.4% | 14.5% |
| NPL Ratio | 1.62% | 1.58% | 1.52% | 1.53% | 1.60% |
| Provisions / Loans | 0.20% | 0.20% | 0.25% | 0.27% | 0.68% |
| Liquidity Coverage Ratio | 133% | 147% | 158% | 143% | 142% |
| Net Stable Funding Ratio | 116% | 116% | 120% | 116% | 116% |
CreditSight View Comment
AS OF 07 Nov 2025UOB is conservatively run with a large family ownership and a sound balance sheet. The bank is more focused on SG and Southeast Asia than on Greater China. Outside SG, its main operations in ASEAN are in Thailand, Malaysia and Indonesia which collectively make up ~20% of its loan book. It acquired Citi’s consumer operations in Thailand, Malaysia, Indonesia and Vietnam, which has been good for the franchise. The bank has benefitted more from the final Basel III rules implementation than its peers but it has lost this advantage again since 3Q25. The substantial preemptive provisions taken in 3Q25 to strengthen coverage ratios heavily hit the bank’s 3Q25 results, but UOB’s NPL coverage ratio remained 40-60 ppt behind the two peers. New NPAs have risen due to its CRE exposure in HK and the US.
Recommendation Reviewed: November 07, 2025
Recommendation Changed: July 04, 2017
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Fundamental View
AS OF 12 Nov 2025Historically, KDP has benefited from exposure to faster growing, higher margin beverage & coffee categories. However, the credit story is current dominated by the pending acquisition of JDE Peet’s, and plans to separate the coffee and beverage businesses.
Pro forma for the initial merger, KDP will have net leverage of 4.6x (vs 3.3x at MRQ), with plans to delever thereafter. Management expects both standalone entities to maintain investment grade ratings, but leverage will likely be elevated out of the gate.
KDP has a successful track record of deleveraging after past M&A. We like the growth outlooks of the proposed standalone entities, and think the new issue to fund the acquisition will likely present a good opportunity to add exposure to the name.
Business Description
AS OF 12 Nov 2025- KDP is the result of a July 2018 merger between Dr Pepper Snapple and Keurig Green Mountain. The merger combined a traditional soft drinks company (DPS) with a faster growing coffee platform that includes the market's leading single serve brewing system.
- The merger was backed by JAB Holdings via its affiliate, Maple Holdings BV. While JAB has trimmed its stake in recent periods, it still controls ~16% of the shares.
- KDP recorded $15.4 bn in 2024 net sales with adjusted EBITDA of $4.5 bn. The business is heavily concentrated in North America, and results are reported across three operating segments: U.S. Refreshment Beverages (61% of 2024 sales), U.S. Coffee (26% of sales), and International (13.0% of sales).
- Examples of KDP's key brands include Dr Pepper, Keurig, Snapple, Canada Dry, 7Up, Mott's, and A&W. The company also partners with other leading coffee brands from various producers via licensing and manufacturing agreements for K-cups.
- KDP signed a definitive agreement to acquire JDE Peet's for $22+ bn in August. The deal is expected to close in 1H26. Subsequently the company intends to separate the business into two standalone entities: Global Coffee Co and Beverage Co.
Risk & Catalysts
AS OF 12 Nov 2025The KDP-JDEP acquisition ($22 bn) is anticipated to close in 1H26, with the goal of being separation ready by year-end 2026. Management reiterated its $400 mn synergy target over three years.
The coffee industry is currently experiencing intense cost inflation, and price elasticity has increased, challenging cost passthrough.
Post-split, BeverageCo will target 3.5-4.0x net leverage and Global CoffeeCo will target 3.75-4.25x net leverage. There is still uncertainty where legacy bonds will end up, but we tend to see BeverageCo ending up as RemainCo. It is also unclear what pf net leverage will be at the standalone entities. If BeverageCo is RemainCo, we expect some level of debt repayment following a spin/sale of Global CoffeeCo.
Key Metric
AS OF 12 Nov 2025| $ mn | Y21 | Y22 | Y23 | Y24 | LTM 3Q25 |
|---|---|---|---|---|---|
| Revenue | 12,683 | 14,057 | 14,814 | 15,351 | 16,174 |
| EBITDA | 3,908 | 3,932 | 4,189 | 4,528 | 4,678 |
| EBITDA Margin | 30.8% | 28.0% | 28.3% | 29.5% | 28.9% |
| EBITDA-CAPEX-INT % of Revenues | 23.5% | 20.5% | 21.7% | 21.6% | 21.7% |
| Total Debt | 12,024 | 12,104 | 13,308 | 15,595 | 15,846 |
| Net Debt | 11,457 | 11,569 | 13,041 | 15,085 | 15,330 |
| Net Leverage | 2.9x | 2.9x | 3.1x | 3.3x | 3.3x |
| EV / EBITDA | 16.3x | 15.8x | 14.2x | 13.0x | 10.7x |
CreditSight View Comment
AS OF 28 Oct 2025KDP signed a definitive agreement to acquire JDE Peet’s for $22+ bn in August. The deal is expected to close in 1H26. Subsequently the company intends to separate the business into two standalone entities: Global Coffee Co and Beverage Co. Initially, the company contemplated out of the gate pf net leverage, but after pushback from investors, the company is swapping debt financing for PE investments that will reduce pf net leverage to 4.6x. The separation is expected to be ready by year-end 2026. Management will target 3.5-4.0x net leverage at Beverage Co and 3.75-4.25x leverage at Global Coffee Co. We see the new issuance for the merger as a good opportunity to add exposure to the credit.
Recommendation Reviewed: October 28, 2025
Recommendation Changed: October 28, 2025
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Fundamental View
AS OF 12 Nov 2025DBS Group has sound standalone fundamentals and benefits from its strong home country. Support may be stronger than peers thanks to its longstanding relationship with the government and Temasek’s ~29% stake.
DBS is a major player in Asian corporate banking, and also has strengths in mass market and private banking. It is also one of Asia’s leading digital banks. Acquisitions have been skillfully handled in the past decade or so.
DBS has performed well in recent years, with a high RoE, and its asset quality has been more resilient than that at UOB and OCBC thanks to its greater exposures to large corps.
Business Description
AS OF 12 Nov 2025- DBS was established in 1968 as a development bank but was subsequently privatised and is now commercially run. The Singapore government retains an indirect stake through its investment vehicle, Temasek (~29%).
- In 1998, DBS moved beyond its wholesale bank origins with the acquisition of POSB that brought along a large mass market customer and deposit base. In 2001, it acquired the former Dao Heng Bank in Hong Kong and in 2008, it acquired a part of the failed Bowa Bank in Taiwan, to supplement its Greater China operations. It also regularly acquired wealth management businesses, such as SocGen's Asian private banking business in 2014 and ANZ's Asian retail and wealth management businesses in Singapore, Hong Kong, China, Taiwan and Indonesia in 2018. Recent acquisitions include Lakshmi Vilas Bank in India, a 16.69% stake in China's Shenzhen Rural Commercial Bank, and Citi's consumer business in Taiwan. However, expansion in Malaysia has been more challenging, with its most recent plan to acquire Temasek's 29.1% stake in Alliance Bank Malaysia Bhd held up by regulatory review.
- As of 1H25, Singapore accounted for 45% of its loan book, with HK (13%), Rest of Greater China (13%), South & Southeast Asia (9%) and Rest of the World (20%) accounting for the rest.
- The bank is well regarded as a digital leader in the banking space, and has steadily built capabilities in private banking and markets businesses.
Risk & Catalysts
AS OF 12 Nov 2025Loan growth has been a recent challenge, with ongoing high repayments in Greater China and potential impact from tariffs.
Asset quality has outperformed the other two Singapore majors with very low credit costs.
The bank encountered some operational issues recently. On 30 April 2024, the MAS removed its restriction on DBS’s non-essential activities, which had been imposed in Nov-23 following IT failures. Its retail payments system had another outage on 2 May 2024.
Like other Singapore banks, DBS is facing NIM pressure as SORA keeps falling due to excess liquidity.
Key Metric
AS OF 12 Nov 2025| SGD mn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| PPP ROA | 1.14% | 1.32% | 1.60% | 1.69% | 1.67% |
| ROA | 1.0% | 1.1% | 1.4% | 1.5% | 1.4% |
| ROE | 12.5% | 15.0% | 18.0% | 18.0% | 17.0% |
| Equity/Assets | 8.38% | 7.65% | 8.40% | 8.32% | 7.81% |
| CET1 Ratio (fully loaded) | 14.4% | 14.6% | 14.6% | 15.1% | 15.1% |
| NPL Ratio | 1.3% | 1.1% | 1.1% | 1.1% | 1.0% |
| Provisions / Loans | 0.01% | 0.06% | 0.14% | 0.14% | 0.18% |
| Liquidity Coverage Ratio | 135% | 146% | 144% | 147% | 149% |
| Net Stable Funding Ratio | 123% | 117% | 118% | 115% | 114% |
CreditSight View Comment
AS OF 07 Nov 2025DBS performed well for several years under CEO Piyush Gupta, who was succeeded by Ms. Tan Su Shan in March 2025. It has comfortable capital and well managed liquidity. Temasek is the main shareholder. DBS has grown its various businesses sensibly and has been a leading bank for adopting digital technology, recent technology outages notwithstanding. It has also steadily grown its fee income and its regional businesses. WM and transaction banking have been focuses, with bolt-on acquisitions/stakes in private banking and Asian retail banking, more recently in India (Lakshmi Vilas Bank), China (SZRCB) and Taiwan (Citi consumer business). It delivered record high FY4 profits and 9M25 results were peer-leading. Credit costs are very low.
Recommendation Reviewed: November 07, 2025
Recommendation Changed: June 03, 2016
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Fundamental View
AS OF 10 Nov 2025As one of the world’s largest beverage companies KO operates across a diverse geographic footprint and generates stable and robust free cash flow.
KO’s net leverage is in a conservative position despite a recent increase in debt, at the low-end of management’s 2.0-2.5x range.
In light of recent increase price elasticity in food categories, we favor KO’s pure-play beverage portfolio to mixed food and beverage portfolio at PepsiCo.
Business Description
AS OF 10 Nov 2025- KO is the world's largest beverage company, owning, licensing, and marketing numerous brands in over 200 countries worldwide. It has 4 of the world's top 5 nonalcoholic sparkling beverage brands: Coca-Cola, Diet Coke, Fanta and Sprite.
- KO distributes its product through independent and company-controlled bottling distribution operations. KO largely refranchised its wholly-owned bottlers, selling the operations to independent bottlers. This strategy reduced capital intensity and expanded margins.
- KO has two primary businesses: Beverage Concentrates (66% of revenue) and Finished Sparkling & Still Beverages (34% of revenue). KO uses unit case volume growth and concentrate sales volume to evaluate performance.
- In 2024, the Coca-Cola system sold 33.7 bn unit cases of products worldwide, comprised of 69% from sparkling beverages and 47% from trademark Coca-Cola. The system has broad international exposure, with 84% of unit case volume generated outside the U.S.
Risk & Catalysts
AS OF 10 Nov 2025An unfavorable U.S. tax ruling could still result in some leverage creep depending on the ultimate outcome. KO is appealing the ruling, and in the meantime, management’s has steered leverage towards or below the low-end of its 2-2.5x range.
Management has expressed interest in expanding its presence over time in the alcoholic beverage category, although to this point the company has limited its involvement to licensing arrangements for its soft drink brands with large-scale brewers and distillers.
Sugar-based drinks have frequently been the target of RFK Jr’s MAHA movement, introducing risk of SNAP eligibility loss, which could create demand headwinds.
Key Metric
AS OF 10 Nov 2025| $ mn | Y21 | Y22 | Y23 | Y24 | LTM 3Q25 |
|---|---|---|---|---|---|
| Revenue | 38,658 | 43,046 | 45,784 | 46,897 | 47,475 |
| EBITDA | 12,898 | 13,961 | 14,719 | 15,446 | 16,122 |
| EBITDA Margin | 33.4% | 32.4% | 32.1% | 32.9% | 34.0% |
| EBITDA-CAPEX-INT % of Revenues | 27.9% | 26.9% | 24.8% | 25.0% | 26.2% |
| Total Debt | 42,761 | 39,149 | 42,064 | 44,522 | 47,416 |
| Net Debt | 31,835 | 28,587 | 29,701 | 31,674 | 33,542 |
| Net Leverage | 2.5x | 2.0x | 2.0x | 2.1x | 2.1x |
| EV / EBITDA | 22.4x | 21.8x | 19.4x | 19.5x | 19.8x |
CreditSight View Comment
AS OF 21 Oct 2025We have an Outperform recommendation on KO bonds, reflecting a slight preference for the credit over its high-A beverage peer, PepsiCo, at similar levels. We view both credits as core holds, but our updated view reflects increased comfort with KO’s ability to navigate an expected tax liabilities related to U.S. Tax Court litigation, as well as recent earnout payments related to the Fairlife acquisition. KO has reported steady organic growth led by continued pricing benefits and stable consumption trends across its portfolio of soft drinks. Management guides to a net leverage target of 2-2.5x and we expect the company to maintain metrics in that range over the medium term. Playing KO vs PEP also allows investors to avoid activist risk at PEP.
Recommendation Reviewed: October 21, 2025
Recommendation Changed: January 16, 2025
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Fundamental View
AS OF 07 Nov 2025In an industry beset by manufacturing issues and operational hiccups, HWM continues to perform admirably while also paying down debt.
Net adjusted leverage declined 0.2x sequentially to 1.6x and compares to 6.7x at the time of the Arconic spin in 2019. Current leverage levels justify further agency upgrades, into the A category. Recall S&P and Fitch both upgraded the credit to BBB+ this year.
We retain an Outperform view on HWM credit, which we expect will continue to move higher in ratings. We expect the credit will Outperform in a widening market environment due to its relatively short duration and defensive nature.
Business Description
AS OF 07 Nov 2025- Howmet Aerospace Inc. is the surviving entity of the legacy Alcoa Inc. following two major spin-off transactions in 2016 when Alcoa was spun off and in 2020 when Arconic was spun out. Howmet is now focused on high value add, high margin aluminum, titanium and nickel superalloy casting and forging.
- Products are sold into the Commercial Aerospace , Defense Aerospace, Commercial Transportation, and other end markets. Howmet also has four reportable segments: Engine Products Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment produces investment casting – including airfoils and seamless rolled rings – as well as rotating and structural parts. The Fastening Products segment produces aerospace and industrial fasteners as well as those sold into the commercial transportation, automotive, renewables, construction, and industrial equipment. Engineered Structures produces titanium ingots and mill products for aerospace and defense applications as well as produces aluminum forgings, nickel forgings, and aluminum machined components. Forged Wheels provides forged aluminum wheels and related products for heavy-duty trucks and commercial transportation.
- Howmet operates 62 facilities in 11 different countries (primarily the US and the UK) and receives the majority of its revenue from the US and Europe.
Risk & Catalysts
AS OF 07 Nov 2025Aerospace industry is still going strong even as there are signs of a potential slowdown. Domestic travel boom significantly benefited narrowbody business while international travel supporting the next stage for widebody recovery.
However, there are signs that passenger demand may start to falter- at least domestically in the US- and we’ll be tracking how much of the booming OE demand will be realized over the next few years.
Increased energy demand driven by the AI boom will be driving higher volumes and demand for HWM’s portfolio of IGT products.
Forged wheels segment faces persistent headwinds from the still-weak trucking industry. However, HWM has an edge in the segment thanks to its lightweight products.
Tariffs impacts appear to be minimal thanks to the ability to pass the costs to customers.
Key Metric
AS OF 07 Nov 2025| $ mn | Y22 | Y23 | Y24 | LTM 3Q25 |
|---|---|---|---|---|
| Revenue | 5,663 | 6,640 | 7,430 | 7,975 |
| EBITDA | 1,276 | 1,508 | 1,914 | 2,270 |
| EBITDA Margin | 22.2% | 23.0% | 26.8% | 29.4% |
| EBITDA-CAPEX-INT % of Revenues | 60.2% | 64.4% | 75.9% | 84.3% |
| Total Debt | 4,162 | 3,706 | 3,315 | 3,189 |
| Net Debt | 3,371 | 3,096 | 2,751 | 2,530 |
| Net Leverage | 2.6x | 2.1x | 1.4x | 1.1x |
CreditSight View Comment
AS OF 17 Nov 2025Howmet Aerospace (Baa1/BBB+/BBB+; S/S/S) posted another solid beat and raise quarter where revenue was +14% and EBITDA was +26% YoY. During the call, management added increasing data center spend to the solid list of tailwinds the company enjoys in Aerospace and Defense. Net adjusted leverage declined 0.2x sequentially to 1.6x and compares to 6.7x at the time of the Arconic spin in 2019. Current leverage levels justify further agency upgrades, into the A category. Recall S&P and Fitch both upgraded the credit to BBB+ this year. We retain an Outperform view on HWM credit, which we expect will continue to move higher in ratings. We expect the credit will Outperform in a widening market environment due to its relatively short duration and defensive nature.
Recommendation Reviewed: November 17, 2025
Recommendation Changed: March 02, 2022
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Fundamental View
AS OF 07 Nov 2025BDO Unibank (BDO) is the largest bank in the Philippines in terms of assets & market share.
Given its size and systemic importance, BDO is considered too big to fail and is strongly likely to be supported by its controlling shareholder SM Investments, as well as the Philippine government in times of stress.
BDO is widely viewed as the soundest bank in the country given its strong fundamentals, well-diversified businesses, and good management.
Business Description
AS OF 07 Nov 2025- BDO Unibank was established as Acme Savings Bank in 1968, and was then acquired by SM Investments in 1976. It became a commercial bank in 1994 and a universal bank in 1996.
- BDO was listed in May 2002. SM Investments remains the bank's largest shareholder with a 41% stake.
- BDO has expanded through a series of M&As. Among its key transactions, it merged with Dao Heng Bank Philippines in 2001, Banco Santander Philippines in 2003, UOB Philippines in 2005, Equitable PCI Bank in 2007, GE Money Bank in 2009, Citibank Savings, DB Trust and Real Bank in 2014, One Network Bank in 2015 (the largest rural bank in the Philippines), and RB Pandi's banking business in 2019. It also acquired the insurance business of Generali in the Philippines in 2016.
- BDO has the largest distribution network in the country and is ranked the largest bank in terms of consolidated resources, total assets, loans, deposits and trust funds under management.
- Its loan book was split 51% large corporates, 24% middle market, and 25% consumer at 2Q25. 41% of the consumer book comprised mortgages, 29% credit cards, 13% auto loans and the remaining personal loans (13%) and others (5%).
Risk & Catalysts
AS OF 07 Nov 2025Direct impact from US tariffs is limited given that the Philippines is not a major goods exporter, but there is likely to be some second order effects from a slowdown in regional and global growth.
We anticipate a negative impact to loan and GDP growth from the recent public infrastructure spending corruption scandal, which will slow government spending and private investments for the next couple of quarters. Further BSP rate cuts are likely in order to support growth, which will put downward pressure on the NIM.
We see few asset quality risks for BDO given a comfortable NPL cover (3Q25: 134%) and build up of the CET1 ratio (3Q25: 14.4%), as well as BDO’s large corporates book (~50% of total loans) and underwriting track record.
Any rating downgrade of the Philippine sovereign would negatively impact BDO.
Key Metric
AS OF 07 Nov 2025| PHP mn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| NIM | 4.05% | 4.14% | 4.37% | 4.35% | 4.29% |
| Reported ROA (Cumulative) | 1.2% | 1.5% | 1.7% | 1.8% | 1.7% |
| Reported ROE (Cumulative) | 10.4% | 13.0% | 15.2% | 15.1% | 14.1% |
| Equity/Assets | 11.7% | 11.3% | 11.5% | 11.8% | 11.9% |
| CET1 Ratio | 13.6% | 13.4% | 13.8% | 14.1% | 14.4% |
| NPL ratio | 2.8% | 2.0% | 1.9% | 1.8% | 1.8% |
| Provisions/Loans | 0.72% | 0.64% | 0.59% | 0.46% | 0.44% |
| PPP ROA | 2.1% | 2.3% | 2.7% | 2.5% | 2.4% |
| Liquidity Coverage Ratio | 145% | 141% | 123% | 132% | 143% |
| Net Stable Funding Ratio | 124% | 124% | 124% | 122% | n/m |
CreditSight View Comment
AS OF 25 Nov 2025BDO is the largest bank in the Philippines. Management is well-regarded, the business is well-diversified and it is the market leader in many business lines. The NIM has peaked with the turn in policy rates, but non-interest income is close to a third of operating income given good fee generation and overall core profitability is strong. We remain comfortable with BDO given the large corporate book and comfortable NPL cover, as well as underwriting track record, which provide comfort around the recently robust growth in retail loans. Capital has also been steadily built up with the CET1 ratio at 14.4% at 3Q25. BDO’s sole $ bond likely has low trading liquidity and hence limited opportunity for RV play given the short less than a year to maturity in Jan-26.
Recommendation Reviewed: November 25, 2025
Recommendation Changed: November 28, 2023
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Search topics about wealth insights and investments.Woori Financial Group
- Sector: Financial Services
- Sub Sector: Banks
- Country: Korea
- Bond: WOORIB 4.875 28
- Indicative Yield-to-Maturity (YTM): 5.108% (Indicative as of March 2)
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Fundamental View
AS OF 05 Nov 2025Woori FG’s performance record had been less consistent than some of its more commercially focused peers but improved in FY21-22. Its FY23 performance lagged behind its peers, but FY24 profit growth was peer-leading, partially thanks to not having the ELS compensation issue which hit the other three FGs in 1Q24. 9M25 performance was softer again due to several one-offs.
Asset quality used to be a strength with the lowest NPL ratios and credit costs among the four FGs but has deteriorated since 2Q23, and we no longer see a gap with the other FGs.
Capital standing is a relative weakness but is closer than ever before to that of its peers on the back of active portfolio management.
Business Description
AS OF 05 Nov 2025- Woori's predecessor banks were rescued by the Korea Deposit Insurance Corporation (KDIC) following the 1997 Asian Financial Crisis.
- Woori Bank is one of Korea's 'Big Four' commercial banks. It previously owned two regional banks, Kwangju and Kyongnam, but these were spun off in 2014. Woori also sold its stake in Woori Investment Securities and its savings bank and life insurance arms to NH Financial Group.
- Woori set up a HoldCo (Woori FG) in January 2019 to expand into more diversified business lines, particularly investment banking. It used to have a HoldCo, but it was dissolved in 2014 when it was merged with Woori Bank.
- Its main subsidiaries are 100%-owned Woori Card, Woori Financial Capital (auto leasing), Woori Investment Bank and 72.3%-owned Woori Asset Trust. In August 2024, the group relaunched securities business by acquiring Korea Foss Securities and merging it with Woori Investment. The group also acquired a 75.34% stake in Tongyang Life and full ownership of ABL Life and has consolidated them since 1 July 2025.
Risk & Catalysts
AS OF 05 Nov 2025Woori FG was for many years majority-owned by the Korean government via the Deposit Insurance Corporation (KDIC), but KDIC has steadily sold down its shareholding, and Woori purchased and cancelled the remaining shares in 2024. That said, Woori FG remains a large, systemically important bank with strong potential government backing if needed.
Woori FG is less diversified than KB and Shinhan, with most of its earnings coming from the bank and small contributions from the card and leasing businesses. The group has accelerated its M&A pace since 2024; it relaunched securities business and acquired two insurance companies. However, It will likely take more time than expected for the new non-banking segments to make a meaningful contribution to the group.
Loan growth is expected to be more challenging given tighter regulation on mortgage lending.
Key Metric
AS OF 05 Nov 2025| KRW bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| Pre-Provision Profit ROA | 0.99% | 1.15% | 1.10% | 1.17% | 1.07% |
| ROA | 0.66% | 0.70% | 0.54% | 0.61% | 0.71% |
| ROE | 10.6% | 11.5% | 8.3% | 9.3% | 10.9% |
| Provisions/Loans | 0.17% | 0.26% | 0.53% | 0.45% | 0.52% |
| NPL Ratio | 0.30% | 0.31% | 0.35% | 0.57% | 0.70% |
| Woori Bank CET1 Ratio | 13.0% | 12.7% | 13.2% | 13.1% | 14.5% |
| Equity/Assets | 6.45% | 6.58% | 6.71% | 6.83% | 6.33% |
| Net Interest Margin Bank + Card | 1.62% | 1.84% | 1.82% | 1.70% | 1.72% |
CreditSight View Comment
AS OF 31 Oct 2025Woori FG was for some years the weakest of Korea’s Big 4 Financial Groups. Operating performance had shown an improvement for a few years but disappointed in FY23. FY24 results were peer-leading, mainly supported by non-interest income, but 9M25 results lagged again (excl. purchase gains). The group has been seeking opportunities to expand its non-bank businesses. Its new securities entity launched in Aug-24 and the acquisition of two insurance companies were completed in Jul-25. Both the group and the bank CET1 ratios are behind peers, but a strong improvement from earlier. The bank LCR is low at ~107% and NSFR is acceptable at ~112%. We have a M/P recommendation based on senior ’29 trading levels. As a systemically important bank, government support is assured.
Recommendation Reviewed: October 31, 2025
Recommendation Changed: April 24, 2017
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Fundamental View
AS OF 05 Nov 2025Shinhan FG was the best-managed of the large Korean financial groups over many years. During the Asian Financial Crisis, it took advantage of the opportunity to acquire competitors and other businesses, increasing its scale and expanding its business lines.
Its performance has been more variable in the past few years. After a bumpy 2020, it had a better FY21 and FY22, thanks to rising interest rates. However, operating performance turned weak again in FY23, and its FY24 profit growth was softer than peers, impacted by non-bank performance. 9M25 witnessed some improvement.
In addition to owning a Big 4 bank in Korea, Shinhan FG also has a diversified non-banking business portfolio, including a leading credit card company and a top 10 securities firm.
Business Description
AS OF 05 Nov 2025- Shinhan Financial Group (Shinhan FG) is one of Korea's most diversified financial groups and the holding company of the second largest Korean bank - Shinhan Bank. It also has credit cards, securities, asset management and insurance subsidiaries.
- Shinhan Bank was set up in 1982 with seed capital from Korean residents in Japan. It was more professionally managed than the heavily politicised older banks and came through the 1997 Asian Financial Crisis in relatively good shape, taking the opportunity to acquire the larger and much longer-established Chohung Bank in 2003.
- In 2007, it made another timely acquisition, buying LG Card from its creditors after it failed during the 2003 Korean consumer lending crisis. Shinhan Card is the largest card issuer in Korea.
- Shinhan is also looking for overseas opportunities where growth is strong and Korean businesses have a presence, with a focus on Vietnam (where Shinhan Card also bought a consumer finance business in 2019) and Indonesia.
Risk & Catalysts
AS OF 05 Nov 2025As one of Korea’s “Big Four” financial groups, we believe Shinhan FG would likely receive governmental support if needed.
Asset quality pressure has been rising from domestic real estate project financing at non-bank subsidiaries, with credit costs rising from very low levels.
Loan growth is expected to be more challenging given tighter regulation on mortgage lending like its peers.
Profit growth may encounter challenges if there is volatility in the KRW, which could lead to significant FX losses.
Key Metric
AS OF 05 Nov 2025| KRW bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| Pre-Provision Profit ROA | 1.11% | 1.10% | 1.23% | 1.19% | 1.30% |
| ROA | 0.66% | 0.72% | 0.66% | 0.63% | 0.80% |
| ROE | 9.2% | 10.0% | 8.6% | 8.4% | 11.1% |
| Provisions/Average Loans | 0.28% | 0.34% | 0.57% | 0.51% | 0.41% |
| NPL Ratio | 0.39% | 0.41% | 0.56% | 0.71% | 0.76% |
| CET1 Ratio | 13.10% | 12.79% | 13.17% | 13.02% | 13.56% |
| Equity/Assets | 7.3% | 7.6% | 7.8% | 7.6% | 7.4% |
| Net Interest Margin | 1.81% | 1.96% | 1.97% | 1.93% | 1.90% |
CreditSight View Comment
AS OF 31 Oct 2025Shinhan FG is one of the four nation-wide commercial banking groups in Korea, with a leading credit card arm. As a systemically important bank, government support is assured. It had over many years the best operating track record, but lost its way and KB and Hana caught up; its performance was inconsistent for a few years but has improved recently. Its 9M25 returns remained high and just behind KBFG. Its CET 1 ratio was also slightly behind KBFG but leading the other two peers. The bank LCR is low at ~105% and NSFR is acceptable at ~111%. It NPL coverage ratio has declined but still decent at 124%, and it plans to lower the CET 1 ratio to slightly above 13%. We are downgrading it to U/P on tight valuations.
Recommendation Reviewed: October 31, 2025
Recommendation Changed: October 31, 2025
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Fundamental View
AS OF 05 Nov 2025KB Financial Group has grown steadily through the acquisitions of non-bank companies in Korea and small banks in Indonesia and Cambodia. Its banking subsidiary, Kookmin Bank, operates the largest branch network in Korea, with a particularly strong presence in the retail market. This makes it a systemically important bank, with strong potential government support if needed.
The group has a good track record, and its large mass-market franchise gives it a strong customer base. It has a well-diversified business and the highest CET1 ratio among the four major financial groups.
Business Description
AS OF 05 Nov 2025- KB Financial Group (KBFG) is a well-diversified and well-run group. Its main subsidiaries, in addition to Kookmin Bank (KB), are Kookmin Card, KB Insurance, KB Securities, KB Capital (leasing), and KB Asset Management.
- KB was the result of several mergers after the Asian economic crisis of the late 1990s. Its main predecessors were Citizen's National Bank and Housing & Commercial Bank, both retail-focused banks that have given it the leading position in Korean retail banking.
- For the near term, the group doesn't expect further M&A. It has looked for growth overseas, focusing on Indonesia (where it has taken a 67% stake in Bank Bukopin) and Cambodia (it took a 100% shareholding in Prasac, a micro-finance lender, over 2020-21). It also bought Prudential Financial's Korean insurance business in 2020, which was subsequently merged with KB Insurance.
Risk & Catalysts
AS OF 05 Nov 2025As one of Korea’s “Big Four” financial groups, we believe that KBFG would likely receive governmental support if needed.
Substantial preemptive provisions led to higher credit costs than peers in 1H25 but Q3 witnessed a normalization. Management’s FY25 credit costs guidance of mid-40 bp aligns with non-Hana peers. KBFG has the highest NPL coverage ratio among the Big 4.
KBFG has the highest NIM among the four FGs, largely thanks to the highest NIM at Kookmin bank among the Big 4 banks. However, its NIM trend lagged peers YTD.
KBFG is expanding by business line and overseas with a focus on Indonesia and Cambodia—markets with more favourable demographics, growth potential, and profit margins than Korea but also more risk.
Loan growth is expected to be more challenging given tighter regulation on mortgage lending.
Key Metric
AS OF 05 Nov 2025| KRW bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| Pre-Provision Profit ROA | 1.14% | 1.05% | 1.36% | 1.37% | 1.37% |
| ROA | 0.69% | 0.57% | 0.65% | 0.68% | 0.83% |
| ROE | 10.2% | 8.8% | 9.1% | 9.7% | 12.3% |
| Provisions/Loans | 0.31% | 0.45% | 0.73% | 0.45% | 0.31% |
| NPL ratio | 0.33% | 0.34% | 0.57% | 0.65% | 0.70% |
| CET1 Ratio | 13.5% | 13.2% | 13.6% | 13.5% | 13.8% |
| Equity/Assets | 7.3% | 7.9% | 8.2% | 7.9% | 7.7% |
| Net Interest Margin | 1.83% | 1.96% | 2.08% | 2.03% | 1.97% |
CreditSight View Comment
AS OF 31 Oct 2025KBFG is the largest of the “Big 4” financial groups in S Korea, and its banking subsidiary, Kookmin Bank, enjoys the strongest franchise with a particularly strong retail, as it was a government retail bank that was privatized in 1995. As a systemically important bank, government support is assured. KBFG has a good track record and a well-diversified business. Capital standing is the key strength, with the current highest group CET1 ratio. The NPL coverage ratio has declined significantly in recent quarters but remained the highest among the Big 4. The bank LCR is low in the ~105 area but NSFR good in the ~115% area. It delivered the highest returns among the Big 4 in 9M25, but topline performance was softer than peers. We are downgrading it to U/P on tight valuations.
Recommendation Reviewed: October 31, 2025
Recommendation Changed: October 31, 2025
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Fundamental View
AS OF 05 Nov 2025Hana Financial Group (Hana FG) struggled for several years to make its acquisition of the former Korea Exchange Bank a success, but results improved dramatically in 2015 as revenues grew and cost efficiencies improved. It has produced strong results since 2020.
The group is looking for inorganic growth in its non-bank businesses as it has fallen behind Shinhan FG and KBFG in this area, but has so far shied away from a large acquisition.
Hana Bank has the highest CET 1 ratio among the Korean Big 4 banks.
Business Description
AS OF 05 Nov 2025- Hana FG is the third-largest financial group in South Korea. From small origins as a finance company in the 1970s, after the 1997 Asian crisis, Hana grew by acquiring three other banks, including the much older Seoul Bank, which had a banking and trust management business.
- Hana FG bought Korea Exchange Bank (KEB) from Lone Star in 2012 after overcoming many hurdles, but due to staff union opposition, it could not merge with Hana Bank until 2015.
- Hana FG's overseas business is smaller than its peers, and is complemented by KEB's extensive international operations. KEB was started in 1967 as a government-owned bank specializing in foreign exchange. It had a leading share in FX transactions and trade finance among Korean banks.
- Hana FG has shown good growth in its credit card and securities non-bank businesses, but is less diversified than its larger peers KB and Shinhan, which have also acquired insurance companies. Its latest acquisition (in 2019) was a 15% stake in Vietnam's state-owned Bank for Investment & Development (BIDV). In 2023, Hana FG decided not to proceed with the acquisition of KDB Life Insurance after two months of due diligence.
Risk & Catalysts
AS OF 05 Nov 2025Hana FG’s credit costs at ~30 bp in FY24 and 9M25 were lower than peers (in the range of 46-52 bp). However, the group’s NPL coverage ratio was also ~20-30 ppt behind peers.
NIMs are lower than those of KB and Shinhan at both the group and bank levels. The profit contribution from non-bank entities to group profits is also lagging behind these two peers. Both metrics are comparable to Woori’s.
Non-banking businesses have underperformed in recent years, with profit contributions falling from 20–30% in 2019–2021 to around 10%, primarily due to elevated provisions for domestic real estate project financing and valuation losses related to overseas commercial real estate.
Loan growth is expected to be more challenging given tighter regulation on mortgage lending.
Key Metric
AS OF 05 Nov 2025| KRW bn | FY21 | FY22 | FY23 | FY24 | 9M25 |
|---|---|---|---|---|---|
| Pre-Provision Profit ROA | 1.07% | 1.10% | 1.11% | 1.00% | 1.11% |
| ROA | 0.74% | 0.66% | 0.59% | 0.61% | 0.72% |
| ROE | 10.9% | 10.1% | 9.0% | 9.1% | 10.6% |
| Provisions/Loans | 0.16% | 0.34% | 0.46% | 0.32% | 0.29% |
| NPL Ratio | 0.32% | 0.34% | 0.50% | 0.62% | 0.73% |
| CET1 Ratio | 13.8% | 13.2% | 13.2% | 13.2% | 13.3% |
| Equity/Assets | 6.8% | 6.4% | 6.6% | 6.7% | 6.7% |
| Net Interest Margin | 1.66% | 1.83% | 1.82% | 1.69% | 1.72% |
CreditSight View Comment
AS OF 31 Oct 2025Hana FG grew through acquisitions but only in 2015 was it able to merge its two main bank units to form KEB-Hana Bank. Hana’s management has a good record but for some years struggled to extract value from its acquisitions. Its performance for the past few years has generally been strong. More focus has been put on RWA management and capital enhancement since 2H24. There is potential for further improvements in the non-bank segment. Hana’s credit costs were lower than those of its peers, but this has also resulted in the lowest NPL coverage ratio at ~105% among the four FGs. The bank LCR and NSFR are low at 106-107%. The group aims to maintain a CET1 ratio of 13-13.5%. We are downgrading it to U/P on tight valuations.
Recommendation Reviewed: October 31, 2025
Recommendation Changed: October 31, 2025
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