Earnings momentum lifts Samsung above KB, Shinhan, Hana and Woori
Long overshadowed by Samsung’s high-profile tech affiliates, the group’s financial subsidiaries are emerging as a formidable earnings engine, on track to approach 6 trillion won ($4.13 billion) in combined net profit for 2025 — ahead of any major banking group.
Industry estimates show Samsung’s five financial arms — insurance, card, securities and asset management — are poised to generate about 5.98 trillion won in combined net profit this year. If realized, the group would surpass bank-led financial holding companies that traditionally dominate Korea’s financial sector.
An industry official described the potential 6 trillion won milestone as “significant in its own right,” noting that most bank-led holding companies still rely heavily on traditional lending.
“It’s difficult to bring nonbank units to that kind of proportion,” the official said. “The capital markets impact was probably the biggest factor. Nonbank subsidiaries within bank holding companies face tighter oversight, and asset management depends heavily on seed capital. With substantial backing from the group, Samsung’s financial units were structurally well positioned to benefit.”
Samsung Card posted 655 billion won in net profit last year, maintaining its industry lead. Samsung Securities topped 1 trillion won in annual earnings for the first time, with net profit rising 12 percent on-year to 1.01 trillion won.
The bulk of earnings is expected to come from insurance. Market consensus projects Samsung Life Insurance to report about 2.3 trillion won in net profit, up 9 percent on-year, while Samsung Fire & Marine Insurance is seen remaining slightly above 2.02 trillion won despite a 2.7 percent decline.
Samsung Asset Management is also expected to exceed last year’s 160 billion won in profit, benefiting from buoyant capital markets, pushing the group’s combined earnings comfortably into the 6 trillion won range.
By comparison, KB Financial Group led the four major banking groups with 5.84 trillion won in consolidated net profit — a record high but still below Samsung’s projected total. Shinhan Financial Group posted 4.97 trillion won, followed by Hana Financial Group at 4.03 trillion won and Woori Financial Group at 3.13 trillion won.
While those groups operate insurance, card and securities units that compete directly with Samsung’s affiliates, roughly 80 percent of their earnings still come from core banking operations. Samsung’s financial performance, by contrast, is generated entirely outside traditional lending.
Beyond headline numbers, Samsung’s subsidiaries have strengthened their competitive standing.
Samsung Life and Samsung Fire each surpassed 2 trillion won in net profit in 2024 for the first time in the industry, reinforcing their leadership positions.
Samsung Card widened its gap with Shinhan Card during an industry downturn, limiting its net profit decline to 2.3 percent compared with Shinhan’s 16.7 percent drop. Its market share has continued to narrow the gap with its rival.
Samsung Securities benefited from a strong year in domestic equities and rising retail trading activity at home and overseas. Brokerage commission income increased more than 30 percent, while retail assets under management surged 43 percent, bolstering its wealth management franchise.
jwc@heraldcorp.com
