Bank of Kaohsiung Co., Ltd. (2836) AI Stock Analysis

Bank of Kaohsiung Co., Ltd.

(TWSE:2836)

Select Model

Rating:57Neutral

Price Target:TWD 12.00▲(3.00% Upside)

Action:initiatedcoverage

Date:11/09/26

The score reflects a moderately positive fundamental picture weighed down by weak price action. Earnings are at a six-year high with revenue growth, improving margins and a rebound in operating cash flow, but returns on equity of 4.8% are thin, long-term margins have compressed, and a sharp rise in borrowings lifted debt-to-equity to 1.05, raising sensitivity to funding costs. Technically, the stock trades below all key moving averages with negative MACD, although deeply oversold readings suggest the selling may be stretched. Valuation is balanced: a 15.3x P/E is not inexpensive for the current return profile, but a 3.45% dividend yield and low beta offer defensive appeal.

Positive Factors

Positive ProfitabilityThe bank remained profitable while improving net margin year over year, providing an earnings base to support capital formation and ongoing operations. Although margins remain below earlier highs, positive profitability gives the business resilience and internal funding capacity over the next several quarters.

Negative Factors

Sharp Revenue ContractionThe abrupt 2025 revenue decline raises a fundamental question about the durability of the bank’s recent growth rate. A weaker revenue base can constrain operating leverage, reduce resources available for investment, and make future earnings more dependent on a successful recovery in core banking activity.

Bank of Kaohsiung Co., Ltd. (2836) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 21.65B
Dividend Yield: 3.43%
Average Volume (3M): 1.50M
Price to Earnings (P/E): 15.3
Beta (1Y): 0.15
Revenue Growth: 2.92%
EPS Growth: 26.83%
Country: TW
Employees: 1,166
Sector: General
Sector Strength: 55
Industry: Banks - Regional

Bank of Kaohsiung Co., Ltd. Business Overview & Revenue Model

Company Description

Bank of Kaohsiung Co., Ltd. is a commercial bank headquartered in Kaohsiung, Taiwan, providing an extensive array of financial products and services primarily within the nation. Established in 1982, and known as City Bank of Kaohsiung Co., Ltd. until...

Bank of Kaohsiung Co., Ltd. Financial Statement Overview

Summary

Bank of Kaohsiung is in growth mode: revenue has nearly doubled since 2020 to NT$10.04bn, net income rose ~33% to a six-year high of NT$1.28bn, and net margin improved to 12.7% from 9.9% (Income Statement 68). Operating cash flow swung positive to NT$2.43bn with free cash flow of NT$1.93bn after a negative prior year, though cash generation remains volatile and profit-to-cash conversion slipped to 0.79x (Cash Flow 56). The balance sheet shows steady equity build-up to NT$26.7bn on NT$355.8bn of assets, but leverage jumped sharply with debt-to-equity rising to 1.05 from 0.23, ROE remains modest at 4.8%, and equity is only ~7.5% of assets (Balance Sheet 55). Improving earnings momentum is offset by compressed long-term margins and a more rate-sensitive funding profile.

Income Statement

68Positive

Balance Sheet

55Neutral

Cash Flow

56Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.13B	10.04B	9.70B	8.01B	5.66B	5.09B
Gross Profit	4.89B	4.61B	4.33B	3.78B	3.86B	3.98B
EBITDA	1.87B	1.76B	1.51B	1.39B	1.33B	1.23B
Net Income	1.43B	1.28B	961.38M	865.21M	934.50M	909.67M
Balance Sheet
Total Assets	351.25B	355.84B	350.65B	306.90B	279.12B	284.03B
Cash, Cash Equivalents and Short-Term Investments	11.73B	26.88B	21.84B	22.65B	17.41B	15.53B
Total Debt	38.05B	28.18B	5.72B	5.74B	5.68B	3.80B
Total Liabilities	323.28B	329.13B	325.62B	288.35B	263.04B	266.36B
Stockholders Equity	27.97B	26.71B	25.03B	18.55B	16.07B	17.68B
Cash Flow
Free Cash Flow	-4.25B	1.93B	-854.76M	4.39B	1.43B	3.46B
Operating Cash Flow	-3.84B	2.43B	-485.37M	4.46B	1.48B	3.54B
Investing Cash Flow	3.57B	-4.58B	-449.57M	-94.96M	-28.48M	-68.58M
Financing Cash Flow	-6.55B	2.51B	4.84B	-45.22M	-2.25B	813.27M

Bank of Kaohsiung Co., Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2836 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2820	63Neutral	TWD 21.82B	9.19	―	5.50%	16.26%	40.64%
TW:2836	57Neutral	TWD 21.46B	15.26	―	3.43%	2.92%	26.83%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:2836 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2836	Bank of Kaohsiung Co., Ltd.	11.65	0.04	0.34%
TW:2820	China Bills Finance Corporation	16.35	0.64	4.07%
TW:5859	Farglory Life Insurance Co. Ltd.	14.35	-0.42	-2.82%
TW:7722	LINE Pay Taiwan Ltd.	211.50	-309.95	-59.44%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 09, 2026

Bank of Kaohsiung Co., Ltd. AI Stock Analysis