[THE INVESTOR] Korea’s four leading banks likely posted an 11 percent on-year jump in their first-half net profits following their efforts to scale up the nonbanking sector and less exposure to debt-ridden companies, industry sources said on July 11.
The four lenders -- Shinhan Financial Group, KB Financial Group, Hana Financial Group and Woori Bank -- reported 3.9 trillion won (US$3.4 billion) in combined net profit for the January-June period, up from 3.5 trillion won a year earlier, according to estimates by bank officials.
The four lenders -- Shinhan Financial Group, KB Financial Group, Hana Financial Group and Woori Bank -- reported 3.9 trillion won (US$3.4 billion) in combined net profit for the January-June period, up from 3.5 trillion won a year earlier, according to estimates by bank officials.
“As the banks are less exposed to loans extended to the debt-laden shipping and shipbuilding sectors compared with state-owned banks (such as the Korea Development Bank and the Export-Import Bank of Korea), they could focus on making profits in their nonbanking businesses despite record-low rates,” a Shinhan official said.
Shinhan Financial is expected to beat three others with a projected net profit of 1.4 trillion won in the first half, the estimates showed.
In a sharp contrast, the state-run NongHyup Financial Group is on track to shift to a net loss in 2016 from a net profit of 487 billion won a year earlier on sharply increased loan-loss provisions.
Banks’ first-quarter earnings will be available starting in late July.
(theinvestor@heraldcorp.com)