Shinhan Financial's 'Leading Bank' Status Maintained, Woori Financial Group's First Year Smooth Sailing

The Four Major Financial Holding Companies Surpassed 11 Trillion Won in Total Net Profit Last Year

Reference image (Source=Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] The total net profit of the four major financial holding companies exceeded 11 trillion won last year, with Shinhan Financial Group narrowly maintaining its position as the 'leading bank.' Woori Financial Group had a smooth first year since its establishment as a holding company, recording the highest-ever performance on a recurring basis.

According to the financial sector on the 9th, Shinhan Financial's consolidated net profit for last year was 3.4035 trillion won. This represents a 7.8% increase compared to the previous year, marking two consecutive years of net profit exceeding 3 trillion won.

KB Financial Group closely followed Shinhan Financial. It recorded 3.3118 trillion won, an 8.2% increase from the previous year, with a difference of only 91.7 billion won from Shinhan Financial.

Hana Financial Group posted a net profit of 2.4084 trillion won. This is a 7.8% increase from the previous year and the highest performance since the holding company was established at the end of 2005.

Woori Financial Group recorded 1.9041 trillion won. Although this is a 5.7% decrease compared to the previous year's 2.0192 trillion won, when including the accounting net profit reduction of 134.4 billion won due to the holding company conversion in January, the recurring basis net profit is 2.0385 trillion won, marking the highest-ever performance.

Shinhan Financial is evaluated to have increased net profit through strengthening its global division based on the '2020 Smart Project' strategy. KB Financial is analyzed to have benefited from increased interest income from banking and credit cards and growth in fee income.

Hana Financial explained that although one-time costs such as special retirement pay for wage peak employees and non-cash foreign exchange losses due to exchange rate increases occurred, these were offset by gains from the sale of the Myeongdong building and derivative gains related to equity investments in Vietnam, resulting in increased core earnings such as interest income and fee income.

Woori Financial, which received its first annual report card since the holding company launch in January last year, is evaluated to have driven strong performance by improving its revenue structure based on asset growth focused on corporate loans and an increase in core deposits.

In terms of asset soundness (bank basis), it improved compared to the previous year, recording the industry's lowest levels with a non-performing loan (NPL) ratio of 0.40% and a delinquency rate of 0.30%. Woori Financial explained, "This is the result of credit policies that prioritize soundness and active post-management efforts."

The total net profit of these financial holding companies last year was 11.0278 trillion won. Compared to 2018, when it first surpassed 10 trillion won (10.485 trillion won), it increased by 5.2%, but considering the previous year's growth rate (7.0%), the growth trend has slowed.

Considering the management conditions throughout last year, including uncertainties from the US-China trade dispute, low interest rates, and various government regulations, the performance was solid. However, the general view in the financial sector is that profitability management will become more challenging this year as the impact of regulations intensifies.

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