Kbank headquarters in central Seoul / Courtesy of Kbank

Securities companies and industry experts are expressing optimism that Kbank, which achieved record-breaking earnings in the first half of this year, will successfully complete its second attempt to list on the country's main KOSPI exchange.

Analysts attribute the positive outlook for the high-profile initial public offering (IPO), scheduled for the latter half of this year, to the firm's growth potential and improving financial performance.

The nation's first internet-only bank posted a net profit of 85.4 billion won ($64 million) in the first half of this year, which was the highest since its establishment and more than three times higher than last year's earnings.

In 2022, Kbank attempted to list its shares on the local stock market, but scrapped the plan in February 2023, citing a decline in corporate value amid a subdued investment environment at the time.

The bank resumed the IPO process this year, applying for a preliminary listing review with the Korea Exchange on June 28. The approval decision is expected to be made soon.

In its recent report, Kyobo Securities highlighted key investment points for Kbank, including its potential for loan growth and profitability improvement, as well as the benefits of its business partnership with Upbit, the largest cryptocurrency exchange in the country.

The report analyzed that concerns and biases surrounding the bank's relatively small loan portfolio and high dependency on virtual assets are expected to be effectively managed.

If successful, the IPO is projected to boost the firm's loan balance capacity by between 9.5 trillion won and 13.7 trillion won. As a result, the firm's loan balance of 15.67 trillion won ($11.7 billion) as of June is expected to grow approximately 1.9 times over the next two to three years, potentially outpacing its competitors.

Once capital expansion through the IPO is completed, the company's capital adequacy ratio, known as the BIS ratio, currently at 13.9 percent, is expected to improve by about 7 to 11 percentage points. This will enhance the capacity for expanding loan volume and broaden opportunities for new investments, supporting long-term growth.

Kim Ji-young, a senior analyst at Kyobo Securities, also emphasized Kbank's business partnership with Upbit, noting that customers who wish to invest in cryptocurrencies through the exchange are required to open bank accounts with the internet-only bank.

"Given that Kbank is demonstrating tangible results based on its specialized strategies, expectations for its potential are further heightened," the analyst said.

A Kbank official said, "We will continue to focus on growth and profitability improvements, and complete our IPO this year."