Suhyup Bank

Very high likelihood of support from the Korean government. Adequate capital buffer. Improved asset quality, in line with commercial bank peers. Modest market presence. Weak retail customer base. Lowered profitability mainly due to net interest margin compression. The stable outlook on Suhyup Bank reflects our view that the bank will maintain adequate capital buffer over the next 18-24 months, backed by sizable hybrid capital issuance in 2020, gradual profitability improvement, and moderate loan growth, albeit slightly above the industry average. We believe the bank's adequate underwriting standards and improved risk management will likely limit any significant deterioration in asset quality. The outlook also reflects our view that the bank has a very high likelihood of receiving extraordinary support from the

...Outlook: Stable The stable outlook on Suhyup Bank reflects our view that the bank will maintain adequate capital buffer over the next 18-24 months, backed by sizable hybrid capital issuance in 2020, gradual profitability improvement, and moderate loan growth, albeit slightly above the industry average. We believe the bank's adequate underwriting standards and improved risk management will likely limit any significant deterioration in asset quality. The outlook also reflects our view that the bank has a very high likelihood of receiving extraordinary support from the Korean government, if needed, over the period....

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