South Korean financial companies saw their combined net profits earned from overseas branches rise 33 percent in 2016 from a year earlier, mainly driven by growth in Asia, data showed Friday.

According to the data by the Financial Supervisory Service, local financial firms’ combined net profits reached $657 million at their 407 branches in 44 countries in 2016, increasing from $493 million a year earlier. 

By region, their net profits in Asia took up 84 percent of the total overseas net profits, with those in China turning from a $13 million loss in 2015 to a $100 million profit in 2016.

Korean financial firms’ combined assets at overseas branches increased 9 percent on-year to hit $111.3 billion in 2016, with 66 percent of them allocated in the Asian region. China’s proportion in such assets increased to 27.9 percent in 2016 from 25.9 percent in 2015.

By sector, leasing firms had the highest proportion of overseas assets with 7.4 percent, followed by 5.1 percent in the banking industry and 1.4 percent in the non-life insurance sector.

The number of overseas branches in the banking sector was 178 last year, followed by 112 in financial investments, 81 in insurance and 33 in the credit business.

With Southeast Asian countries enhancing regulation on market entry in recent years, Korean financial firms have increasingly acquired Southeast Asian financial companies to enter the growing market.

The number of mergers and acquisitions between Korean and Southeast Asian financial firms increased from 18 in 2014, to 26 in 2015 and to 33 in 2016, the FSS data showed.

By Kim Yoon-mi (yoonmi@heraldcorp.com)