The Four Major Financial Holding Companies Enter Earnings Season... Record High H1 Net Profit of 9 Trillion Won

[Asia Economy Reporter Bu Aeri] The four major financial groups are expected to break their record with nearly 9 trillion won in net profit in the first half of this year.

According to the financial sector on the 17th, the four major financial holding companies will officially enter the Q2 earnings announcement season starting next week. KB Financial Group is scheduled to announce its Q2 management performance on the 21st, Shinhan Financial Group on the 22nd. Woori Financial Group is also scheduled for the 22nd, and Hana Financial Group will announce its results around the same time.

According to financial information provider FnGuide, the combined net profit attributable to controlling interests for the four major financial holding companies?KB, Shinhan, Hana, and Woori?in Q2 this year is expected to be about 4.53 trillion won. Adding the Q1 net profit (4.5951 trillion won), the total net profit for the first half is expected to reach 9 trillion won. This figure far exceeds the record high of 8.0904 trillion won recorded in the first half of last year.

There is also interest in which bank, KB or Shinhan, will claim the position of 'leading bank' in the Q2 earnings announcement. In Q1, KB Financial posted 1.4531 trillion won, and Shinhan Financial posted 1.4004 trillion won, with KB leading by 52.7 billion won.

However, with household loans from the banks, which are the core affiliates of the financial holding companies, decreasing for six consecutive months in the first half, there are forecasts that such growth will be difficult in the second half. Moreover, financial authorities are pressuring banks to reduce the interest rate spread between deposits and loans. As of the end of last month, the household loan balance of the four major banks?KB Kookmin, Shinhan, Hana, and Woori?stood at 565.295 trillion won, decreasing for six consecutive months this year and dropping by more than 7 trillion won.

With record-breaking earnings anticipated, banks are unlikely to avoid criticism that they have once again profited from 'interest business.' As interest rates surged, the loan interest burden on borrowers who borrowed to the maximum has increased, worsening public sentiment. Conscious of this, banks have tried to soothe public sentiment by offering lower mortgage loan interest rates, but the upper limit of credit loan interest rates, which was in the 5% range last month, surpassed 6% within a month, leading to criticism that this is a 'trick.'

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