PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
Jeju Bank's net profit has continued recovering from its 2023 trough, but a regulatory breach in affiliate fund sales and broader regional banking headwinds have surfaced simultaneously.
2025 net profit attributable to owners rose to KRW 13.93bn from KRW 10.42bn in 2024, extending the recovery seen since 2022
Trailing four-quarter (2025Q3-2026Q2) net profit reached KRW 14.85bn, while quarterly operating profit swung between KRW 0.95bn and KRW 5.0bn
In 2025 the bank's sales of affiliate Shinhan Asset Management funds reached 36% of total fund sales, exceeding the 25% regulatory cap—the first such breach since the rule took effect in 2018
Equity grew steadily from KRW 521.9bn (2022) to KRW 647.3bn (2025), while the debt ratio eased from 1,302.7% to 1,139.0%
Shinhan Financial Group holds a 64.01% stake in the bank, which leverages shared group infrastructure and products
Jeju Bank, established in 1969, is the sole regional bank based in Jeju and became part of Shinhan Financial Group in 2002; Shinhan Financial Group currently holds a 64.01% stake in the bank.
Its core operations consist of taking deposits and raising funds through securities issuance, extending loans from that funding base, and providing ancillary services such as guarantees, bill acceptance, and trust business.
While Jeju Special Self-Governing Province is its principal market, the bank also operates branches in Busan and Seoul. Within Jeju, it maintains one of the largest branch networks in the region and has been expanding non-face-to-face channels through a dedicated digital finance brand.
Its stated strategy centers on building growth foundations through digital competitiveness, achieving stable growth by strengthening core banking competitiveness, and contributing to regional economic growth through organizational innovation.
Unlike other regional banks such as Busan Bank and Kyongnam Bank (under BNK Financial Group), Jeonbuk Bank and Gwangju Bank (under JB Financial Group), or Daegu Bank (under DGB Financial Group), Jeju Bank is affiliated with Shinhan Financial Group, allowing it to share group-wide infrastructure and product development capabilities.
However, its asset base remains small relative to nationwide banks and other regional peers given Jeju's narrow regional economy, and a large portion of its business is tied to the local tourism, real estate, and construction sectors.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | — | ₩2.2B | — |
| 2025Q3 | — | ₩4.9B | — |
| 2025Q4 | — | ₩1.6B | — |
| 2026Q1 | — | ₩900M | — |
| 2026Q2 | — | ₩5B | — |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | — | ₩27B | ₩22.8B | — | 4.4% | 1302.7% |
| 2023 | — | ₩2.6B | ₩5.1B | — | 1.0% | 1236.7% |
| 2024 | — | ₩11.4B | ₩10.4B | — | 1.8% | 1161.6% |
| 2025 | — | ₩9.9B | ₩13.9B | — | 2.2% | 1139.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Jeju Bank's annual operating profit fell sharply from KRW 27.02bn in 2022 to KRW 2.62bn in 2023, recovered to KRW 11.42bn in 2024, then eased to KRW 9.93bn in 2025.
Net profit attributable to owners followed a somewhat different path, dropping from KRW 22.82bn (2022) to KRW 5.10bn (2023) before rising for two consecutive years to KRW 10.42bn (2024) and KRW 13.93bn (2025).
The divergence between operating profit and net profit trends in certain periods suggests that non-operating items—such as asset disposals or loan-loss provision reversals—have influenced the bottom line beyond core lending and deposit margins.
On a quarterly basis, operating profit and net profit were KRW 2.17bn/KRW 5.15bn in 2025Q2, KRW 4.88bn/KRW 4.22bn in 2025Q3, KRW 1.62bn/KRW 1.66bn in 2025Q4, KRW 0.95bn/KRW 4.21bn in 2026Q1, and KRW 5.0bn/KRW 4.76bn in 2026Q2, with the ratio between the two figures fluctuating considerably quarter to quarter.
Notably, in 2026Q1 operating profit was just KRW 0.95bn while net profit reached KRW 4.21bn, implying that factors outside core operations drove that quarter's bottom line.
Over the trailing four quarters (2025Q3-2026Q2), net profit attributable to owners totaled KRW 14.85bn, already exceeding the full-year 2025 figure of KRW 13.93bn.
Equity rose steadily each year from KRW 521.9bn (2022) to KRW 647.3bn (2025), while the debt ratio declined from 1,302.7% to 1,139.0% over the same period, indicating a gradual strengthening of the capital base.
On the cash flow side, operating cash flow swung from an outflow of KRW 140.9bn in 2024 to an inflow of KRW 24.9bn in 2025, reflecting the volatility typical of deposit and loan movements in banking operations.
According to one financial data provider's analysis, cumulative consolidated revenue through the third quarter of 2025 fell 4.0% and operating profit fell 20.0% year-over-year, even as net profit rose 30.8%, pointing to margin and cost improvements amid a contracting top line.
Through the third quarter of 2025, domestic banks posted double-digit year-over-year net profit growth driven by improved non-interest income, even as net interest margins stagnated and total loan growth slowed sharply.
The Korea Institute of Finance projects that in 2026 the banking sector will face structural pressure as tightened household debt management intensifies competition for corporate loans while funding costs rise amid competition with securities firms and non-bank lenders for deposits.
Soundness indicators such as the common equity capital ratio remain above regulatory minimums, but corporate loan growth and currency volatility are cited as structural downside risks.
Meanwhile, the four major financial groups—KB Financial, Shinhan Financial, Hana Financial, and Woori Financial—have continued to see share price gains on record profits and expanded dividend policies, highlighting a gap in perceived business conditions between large financial holding companies and smaller regional banks.
Jeju Bank, while affiliated with a major financial group, has a much smaller asset base and therefore lags nationwide banks in scale economics, and its business is more exposed to seasonal and cyclical swings given Jeju's economy's heavy reliance on tourism and real estate.
As with other regional banks under the BNK, JB, and DGB financial groups, competition to secure public-sector deposits, including local government treasury designations, is also cited as a factor affecting business conditions.
Jeju Bank has indicated it will focus on accelerating digital transformation to improve its cost structure and identify new revenue models, a strategy interpreted as an attempt to defend profitability through cost efficiency amid slowing asset growth.
Regarding the affiliate fund sales cap breach, the bank has already reported the matter to the Financial Supervisory Service, and an administrative fine of up to KRW 100 million is expected under the Financial Investment Services and Capital Markets Act; whether internal control processes are subsequently reinforced will be a point to watch.
Since the bank has acknowledged the issue as an internal error and self-reported it, how it restructures its management of affiliate fund sales ratios going forward will indicate whether recurrence can be prevented.
With household debt management policies continuing, the loan growth constraints typical of regional banks may persist into 2026, potentially shifting the profit focus toward non-interest income and cost control rather than interest income.
Leveraging Shinhan Financial Group's shared infrastructure and expanding its digital finance brand are cited as factors that reduce the burden of independent development.
Going forward, it will be important to monitor whether the gap between operating profit and net profit persists in coming quarters—that is, whether non-operating items continue to be the primary driver of earnings.
Jeju Bank's shares trade at a level below the company's net asset value per share, placing the stock in a discount range relative to book value.
At the same time, on an earnings multiple basis the stock trades at a relatively elevated level compared to its historical profit base, a legacy of the sharp 2023 profit decline—illustrating that the two valuation metrics point in somewhat different directions.
The dividend yield runs below the banking sector average, a contrast to the recent trend of major financial holding companies competing to expand shareholder returns.
Given that earnings have been recovering from the 2023 trough even as the affiliate fund sales compliance issue remains outstanding, how the valuation is interpreted may depend on the relative weight investors assign to these two factors.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Net profit attributable to owners bottomed at KRW 5.10bn in 2023 before rising for two straight years to KRW 10.42bn in 2024 and KRW 13.93bn in 2025. Trailing four-quarter profit (2025Q3-2026Q2) also reached KRW 14.85bn, already surpassing the full-year 2025 figure. The continuation of this recovery from the profit trough is viewed as a positive factor.
Equity rose each year from KRW 521.9bn in 2022 to KRW 647.3bn in 2025, while the debt ratio eased from 1,302.7% to 1,139.0% over the same period. While the absolute level remains high, as is typical for banks, the directional easing supports capital-related stability.
As a bank in which Shinhan Financial Group holds a 64.01% stake, Jeju Bank can draw on the group's shared product development, IT systems, and risk management capabilities. This structure can help cost efficiency for a small regional bank that would otherwise struggle to build large-scale infrastructure independently.
In 2025, sales of affiliate Shinhan Asset Management funds accounted for 36% of Jeju Bank's total fund sales, exceeding the 25% statutory cap.
This marks the bank's first such violation since the cap was introduced in 2018, and an administrative fine under the Financial Investment Services and Capital Markets Act is expected. The episode risks drawing market attention to internal control shortcomings.
Quarterly operating profit ranged widely between KRW 0.95bn and KRW 5.0bn, and in some quarters net profit was notably higher than operating profit, indicating meaningful contribution from non-operating items. This pattern makes it harder to gauge the bank's core earnings power precisely.
Jeju Bank's business is closely tied to Jeju's tourism and real estate-driven regional economy, exposing it to relatively large swings from local economic cycles. Amid ongoing household debt management policies, the loan growth constraints typical of regional banks may also persist.
The affiliate fund sales cap breach reported to the Financial Supervisory Service could lead not only to an administrative fine but also to heightened regulatory scrutiny of overall sales practices. Reinforcement of internal controls to prevent recurrence may be required as a follow-up measure.
The 2026 banking sector is expected to face structural pressure from household loan management, intensifying corporate loan competition, and rising deposit funding costs. If net interest margin stagnation persists, smaller regional banks may be relatively more affected given their scale disadvantage.
Jeju's regional economy, with its high concentration in tourism, real estate, and construction, is vulnerable to seasonal factors and external economic swings. A regional economic downturn could weigh on loan asset quality.
The 2026 third-quarter earnings release is expected around this time; it will be important to check whether the gap between operating profit and net profit persists and whether the recent net profit recovery trend continues.
Investors should monitor the final outcome of the Financial Supervisory Service's sanctions or administrative fine regarding the affiliate fund sales cap breach.
Full-year 2026 results and year-end dividend disclosures are expected around this time, warranting a check on whether the annual net profit recovery continues and whether shareholder return policy changes.
The specific implementation direction of household debt management policy and its impact on regional bank loan growth should continue to be monitored.
Jeju Bank has posted consecutive net profit increases in 2024 and 2025 following its 2023 profit trough, and trailing four-quarter net profit has already exceeded the full-year 2025 figure. At the same time, equity has grown steadily and the debt ratio has eased gradually, confirming a degree of capital base stability.
However, quarterly operating profit has shown considerable volatility, and in some periods non-operating items appear to have driven net profit, making it difficult to draw firm conclusions about core earnings strength alone.
Compounding this is the 2025 breach of the statutory cap on affiliate fund sales, reported to financial regulators, with the eventual sanction outcome and any internal control improvements remaining variables to watch.
On the industry side, the broader banking sector faces net interest margin stagnation and rising funding cost pressures in 2026, which could weigh relatively more heavily on smaller regional banks.
Taken together, the company appears to be in a phase where a positive earnings recovery trend coexists with regulatory and industry-related headwinds.
Report written 2026-09-05 · Data as of 2026-09-04
This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.