[Banking, to Eastern Europe] ③ 'Overseas Subsidiary Performance' Shinhan and Hana Smile, Woori Cries

The overseas performance of major domestic commercial banks has shown significant improvement. Shinhan and Hana Banks led the overall growth by continuing to improve their results in Vietnam, Japan, the United States, China, and Russia, while KB Kookmin Bank also significantly reduced its deficit.

According to the Financial Supervisory Service's electronic disclosure system on the 25th, the combined net income of overseas subsidiaries of the four major domestic commercial banks (KB Kookmin, Shinhan, Hana, and Woori) was approximately 799.8 billion KRW (KB and Woori based on controlling shareholder basis). This represents an increase of about 86.3% compared to the previous year (approximately 429.1 billion KRW).

The leader was Shinhan Bank. Shinhan Bank's net income from 10 overseas subsidiaries (Vietnam, Japan, Kazakhstan, China, Europe, Cambodia, Mexico, Canada, Indonesia, and the United States) last year was about 482.4 billion KRW, a 13.0% increase from the previous year (approximately 426.9 billion KRW).

By subsidiary, the U.S. subsidiary posted a loss of about 26.7 billion KRW, and net income also declined for the Indonesian, Cambodian, and Chinese subsidiaries. However, growth from Shinhan Vietnam Bank and Japan SBJ Bank, known as the "Two top," along with a surprise performance from the Kazakhstan subsidiary, offset these declines.

Shinhan Vietnam Bank recorded net income of 232.8 billion KRW, up 16.9% year-on-year, and SBJ Bank posted 127.0 billion KRW, an 8.8% increase. These net income figures rank 5th and 6th within Shinhan Financial Group, following Shinhan Bank, Card, Life, and Capital. The Kazakhstan subsidiary also posted a surprising performance of 68.6 billion KRW, more than six times the previous year.

Along with Shinhan Bank, Woori Bank, which led overall overseas performance, showed somewhat sluggish results. The combined net income of Woori Bank's 11 overseas subsidiaries on a controlling shareholder basis was about 227.9 billion KRW, a decrease from 288.3 billion KRW the previous year. This was due to declining performance in major Southeast Asian subsidiaries.

Woori Sodara Bank in Indonesia recorded net income of about 60.2 billion KRW, down 11.9%, and Woori Bank Vietnam posted about 59.6 billion KRW, a 5.6% decrease. In particular, Woori Bank Cambodia's net income fell by 57.9% to about 25.2 billion KRW. Additionally, Woori America Bank and Woori Bank China also showed declines of about 5-10%.

Hana Bank earned about 112.9 billion KRW in net income, which is 16 times the previous year's figure (approximately 7.1 billion KRW). Hana Bank achieved balanced growth in Germany, Brazil, the United States, and Russia. Notably, it made remarkable progress in China and Mexico. The China subsidiary posted a loss of about 97.2 billion KRW in 2022 but recorded net income of about 4.9 billion KRW last year. Mexico KEB Hana Bank posted net income of 3.4 billion KRW last year, growing 891% year-on-year.

However, it recorded poor performance in Canada and Southeast Asia. The Indonesian subsidiary PT Bank posted net income of about 38.1 billion KRW, a 26% decrease from the previous year. Canada KEB Hana Bank also saw net income decline by about 2%.

KB Kookmin Bank's Indonesian subsidiary 'KB Bank' (formerly KB Bukopin Bank) continued to post losses, but gains from China and Cambodia partially offset this. The China subsidiary recorded a loss in 2022 due to proactive provisions amid the COVID-19 situation but turned profitable last year with net income of about 30.3 billion KRW. In Cambodia, it posted net income of about 115.7 billion KRW. The performance of KB Bank, a challenge for KB Kookmin Bank, is gradually improving. KB Bank recorded a loss of 173.3 billion KRW (controlling interest basis), continuing its deficit but significantly reducing the loss compared to the previous year (-537.2 billion KRW).

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