Shinhan vs KB 'Financial Giants Stock Battle'

Both Companies Achieved Record High Net Profits Last Year... Market Caps Fluctuate Around 100 Billion Won Difference

[Asia Economy Reporter Park Jihwan] The fierce battle between Shinhan Financial Group and KB Financial Group, the financial giants, continues intensely.

According to the Korea Exchange on the 7th, as of 10:13 AM, Shinhan Financial Group's market capitalization stood at 18.5649 trillion KRW, leading KB Financial Group (18.4619 trillion KRW) by 103 billion KRW, ranking 13th in the KOSPI market capitalization.

This year, the throne battle between the two companies has become even more intense. On the 14th of last month, KB Financial Group recorded a market capitalization of 19.8964 trillion KRW, reclaiming the number one position in the financial sector from Shinhan Financial Group (19.8453 trillion KRW) for the first time in about a year. Until last year, Shinhan Financial Group had consistently led KB Financial Group in market capitalization.

However, at the end of last year, while Shinhan Financial Group's market capitalization dropped significantly due to the sluggish performance of bank stocks, KB Financial Group announced a share buyback for shareholder returns, causing its stock price to surge. As a result, KB Financial Group successfully overtook Shinhan Financial Group by sharply narrowing the market capitalization gap, which had once widened to about 3.6 trillion KRW earlier this year. But Shinhan Financial Group soon counterattacked, and the throne changed hands again at the end of last month. As of the closing price on the 28th of last month, Shinhan Financial Group (19.0391 trillion KRW) once again led KB Financial Group (18.0535 trillion KRW) in market capitalization.

Attention is also focused on stock price trends following recent earnings announcements. The securities industry expects the fierce competition for the top financial stock to continue this year, as the market capitalization difference between the two stocks is only around 100 billion KRW.

Both Shinhan and KB posted record-high net profits last year. Shinhan Financial Group recorded a net profit of 3.4035 trillion KRW, up 7.8% from the previous year, while KB Financial Group also posted a net profit of 3.3118 trillion KRW last year.

Shinhan Financial Group plans to widen the gap with KB Financial Group further this year through the full acquisition of Orange Life. It is expected to focus particularly on synergy effects with non-bank affiliates such as insurance and securities. After acquiring Orange Life last year, Shinhan Financial Group increased insurance profits and securities-related income, and in the investment banking (IB) sector, it boosted fee income for the entire group.

On the other hand, KB Financial Group is seeking to reclaim its leading financial position this year through corporate mergers and acquisitions (M&A). It is completing the acquisition process of Cambodia's Prasac, which was decided last year, and has recently entered the bidding for Prudential Life Insurance, which has come up for sale. Additionally, unlike the broader financial sector struggling with various private equity fund scandals, KB Financial Group's unique freedom from these two issues is also a strength.

This content was produced with the assistance of AI translation services.