Shinhan Financial Group said Thursday that it posted a net profit of 2.36 trillion won ($2.18 billion) last year.

The financial services company said the 2012 earnings marked a drop by 23.8 percent from the 2011 net profit of 3.1 trillion won. “The year-on-year fall was attributable to a reduction in the net interest margin and accumulation of loan loss provisions.”

Its flagship Shinhan Bank reported a profit of 1.69 trillion won, down 19.9 percent from a year earlier. Shinhan Card posted 749.8 billion won in earnings.

In indices for asset soundness, the group and its bank unit posted 12.4 percent in 15.8 percent, respectively, in the Bank of International Settlement capital adequacy ratio, which weighs a bank’s capital against its risk.

The BIS ratio climbed from the previous year’s figures ― 9.5 percent for the group and 12.6 percent for the bank, respectively.

(kys@heraldcorp.com)