The Four Major Banks Show Slower Growth in Overseas Business This Year

[Asia Economy Reporter Song Hwajeong] This year, the overseas business growth of the four major banks has slowed down. While domestic revenue increased to an all-time high, overseas revenue did not keep pace, resulting in a decrease in the proportion of overseas revenue.

According to the Financial Supervisory Service's Financial Information Statistics System on the 18th, the average transnationalization index of the four major banks?Kookmin, Shinhan, Woori, and Hana?as of the end of the second quarter this year was 15.83%, slightly up from 15.74% at the end of last year. The transnationalization index is an indicator of the degree of internationalization of banks, calculated by combining the ratios of overseas operating assets to total assets, overseas branch revenue to total revenue, and overseas branch personnel to total personnel.

Kookmin Bank remained unchanged at 18% compared to the end of last year. Shinhan Bank slightly decreased from 15.33% to 15%, Hana Bank from 12.33% to 12%, while only Woori Bank showed an upward trend from 17.33% to 18.33%.

Looking at the trend over the past three years, Kookmin jumped significantly from 3.33% at the end of 2019 to 16% at the end of 2020, and rose to 18% at the end of last year, maintaining that level. Shinhan has been relatively flat, rising from 15% in 2019 to 15.33% at the end of 2021, then returning to 15% this year. Hana Bank fell from 13.33% in 2019 to 12% at the end of 2020, recovered to 12.33% at the end of last year, but dropped back to 12% this year. Woori Bank has shown a continuous upward curve, rising from 14.67% at the end of 2019 to 15.67% at the end of 2020, 17.33% at the end of 2021, and 18.33% this year.

The ratio of overseas assets increased for all banks. For Kookmin, the proportion of overseas assets to total assets rose from 6.1% at the end of last year to 7.27%. Shinhan increased from 10.16% to 10.76%, Woori from 9.89% to 11.26%, and Hana from 9.68% to 10.38%.

On the other hand, the overseas revenue ratio declined across the board. Kookmin's overseas revenue ratio dropped from 5.39% at the end of last year to 4.06%, Shinhan from 8% to 5.85%, Woori from 4.82% to 3.84%, and Hana from 7.59% to 5.78%. This is interpreted as the overseas revenue growth rate failing to keep up with the sharp increase in domestic revenue, leading to a decrease in the ratio.

The overseas personnel ratio increased for all except Kookmin. Shinhan's overseas personnel ratio rose from 27.67% at the end of last year to 27.95%, Woori from 36.72% to 40.06%, and Hana from 19.01% to 20.16%. In contrast, Kookmin's ratio decreased from 43.2% to 42.82%.

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