South Korean banking teams register report earnings

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(From left to proper) The headquarters of South Korea’s high 4 main banking teams – KB, Shinhan, Hana and Woori – all positioned in Seoul. SUPPLIED/THE KOREA HERALD

South Korea’s high 4 main banking teams – KB, Shinhan, Hana and Woori – noticed their mixed earnings final 12 months hit a report excessive, largely buoyed by sturdy curiosity and fee earnings.

In response to their separate regulatory filings, the entire web revenue of the corporations soared 34.5 per cent year-on-year to 14.5 trillion received ($12 billion) final 12 months, eclipsing the earlier report of 10.8 trillion received in 2020.

KB Monetary Group outpaced rivals when it comes to web revenue. Its web elevated 27.6 per cent to 4.4 trillion received. Its flagship business lender KB Kookmin Financial institution’s web revenue gained 12.7 per cent on-year to 2.59 trillion received, whereas brokerage KB Securities’ web jumped 39.6 per cent to 594.3 billion received.

Shinhan Monetary Group trailed behind KB, posting report web revenue of some 4 trillion received, up 17.7 per cent in contrast a 12 months in the past. Banking unit Shinhan Financial institution’s web revenue gained 20 per cent on-year to 2.49 trillion received and securities arm Shinhan Funding’s web revenue greater than doubled to 320.8 billion received.

Smaller rivals Hana Monetary Group and Woori Monetary Group additionally reported upbeat earnings. Hana and Woori posted web revenue of three.6 trillion received and a couple of.8 trillion received, up 33.4 per cent and 23.3 per cent, respectively.

The sturdy web income have been largely pushed by commissions tied to elevated loans prolonged to debtors in search of to buy shares and cryptocurrencies, amid a record-low rate of interest.

The Financial institution of Korea had slashed its benchmark rate of interest to 0.5 per cent in Could 2020 and maintained it for greater than a 12 months to cushion the economic system from pandemic woes. Nodding towards excessive inflation and the recovering economic system, the central financial institution delivered its first pandemic-era charge hike in August final 12 months, adopted by two 0.25 share raises in August 2021 and January this 12 months. Final month’s charge hike introduced the speed again to a pre-pandemic stage of 1.25 per cent.

In the meantime, over the complete of 2021, banks’ family loans elevated 71.8 trillion received, the third-largest acquire in historical past.

THE KOREA HERALD/ASIA NEWS NETWORK





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