[Bank Status Report] Last Year, 18 Korean Banks' Net Profit Reached 17.7 Trillion Won

2022 Domestic Banking Sector Management Status Report
Net Profit Nears 3 Trillion Won, Hana Bank Ranks First

It was found that 18 domestic banks recorded a net profit of approximately 18 trillion won last year. This was due to a significant improvement in the net interest margin (NIM) following the base interest rate hike.

On the 23rd, as domestic market interest rates and bank loan interest rates rapidly rise, a banner displaying loan interest rates is hung on the exterior wall of a commercial bank in Seoul. Photo by Jinhyung Kang aymsdream@

According to the '2022 Domestic Banking Sector Management Status Disclosure Report' released by the Korea Federation of Banks on the 1st, the net profit of 18 domestic banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup, IBK Industrial, Sh Suhyup, SC Jeil, Citi, Busan, Gyeongnam, Daegu, Gwangju, Jeonbuk, Jeju, Kakao, K, Toss) reached 17.736 trillion won last year.

Among the 18 banks, Hana Bank recorded the highest net profit (2.986 trillion won). Hana Bank's net profit has been rapidly increasing every year, with 1.8666 trillion won in 2020 and 2.3801 trillion won in 2021. KB Kookmin Bank (2.9082 trillion won), Shinhan Bank (2.6319 trillion won), and Woori Bank (2.5474 trillion won) followed Hana Bank, ranking 2nd to 4th respectively. The combined net profit of these four banks was 11.0735 trillion won, accounting for 62% of the total net profit of all banks.

Next were Industrial Bank of Korea (2.0241 trillion won), NH Nonghyup Bank (1.7972 trillion won), Busan Bank (464.8 billion won), SC Jeil Bank (391.3 billion won), Daegu Bank (364.5 billion won), Gyeongnam Bank (282.8 billion won), Kakao Bank (263.1 billion won), Gwangju Bank (254.7 billion won), Sh Suhyup Bank (204.8 billion won), Jeonbuk Bank (177 billion won), Citi Bank (146 billion won), K Bank (83.6 billion won), and Jeju Bank (22.8 billion won), in that order.

Except for Toss Bank (which recorded a net loss), most banks saw an increase in net profit due to improvements in NIM and expanded interest income resulting from the sharp rise in interest rates. In terms of scale by bank, Kookmin Bank's interest income reached 8.5592 trillion won, and Hana Bank's was 7.0471 trillion won. Including Shinhan Bank (7.1611 trillion won) and Woori Bank (6.6141 trillion won), the interest income of the four major banks totaled 29 trillion won.

The banking sector's competitive strengthening of corporate loans also had an impact. Regarding the scale of interest income, Kookmin Bank explained, "Interest income increased by 1.4279 trillion won, or 20.02% compared to the previous year, due to asset growth centered on corporate loans and NIM improvement resulting from the rise in market interest rates." Hana Bank also stated, "We actively worked to increase assets, resulting in an increase of 2.36 trillion won in loan receivables compared to the previous year, and NIM improvement was achieved through base interest rate hikes and portfolio management of operations and funding."

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