 |
| Seen above are the headquarters of Korea's four major financial holding firms including KB, Shinhan, Hana and Woori. Courtesy of the respective banks |
By Yi Whan-woo
Shinhan Financial Group reaped the biggest gains among the nation's four major banking groups in the third quarter, outpacing KB Financial Group which saw a slight fall in profits but retains the top position by market capitalization.
In a report released on Tuesday, Shinhan Financial Group said it posted a record-high quarterly net profit of 1.59 trillion won ($1.11 billion) in the July-September period, up 42.9 percent from a year earlier and up 20.8 percent from the April-June period this year.
Its aggregate net profit from January to September amounted to 4.31 trillion won, up 21.2 percent year-on-year, and also higher than any first three quarters of a year combined.
 |
Meanwhile, KB Financial Group's net profit in the third quarter totaled 1.27 trillion won, down 2.1 percent from a year earlier and also down 2.5 percent from the April-June period this year.
The country's largest banking group also lagged behind second-ranked Shinhan in terms of aggregate net profits in the first nine months of 2022.
KB Financial Group reported 4.27 trillion won for the cited period, up 6.8 percent from a year earlier.
Shinhan Financial Group attributed its record-high quarterly earnings to sales of non-operating assets, besides robust interest payments over steep hikes on benchmark interest rates.
"We've sought to make our operation efficient against growing volatility in the financial market," it said, adding that it will enhance risk management efforts for socially vulnerable customers who are especially prone to financial risks.
KB Financial Group assessed that the third quarter was when the company "again proved its rock-solid fundamentals and revenue management capabilities" against the unfavorable sales environment associated with deepening economic uncertainties.
Two other major banking groups ― Hana Financial Group and Woori Financial Group ― posted net profits of 1.12 trillion won and 899.8 billion won, respectively, in the third quarter.
The quarterly earnings jumped 20.8 percent year-on-year for Hana and 15.7 percent year-on-year for Woori.
For the January-September period, Hana logged a 2.84 trillion won aggregate net profit, up 6.26 percent year-on-year, while Woori logged 2.66 trillion won, up 21.1 percent year-on-year.
The 2.84 trillion won net income is an all-time high for Hana for the same period.
"Despite foreign exchange losses from a weak Korean currency, we posted stable earnings through substantial growth in loans and efficient cost management," Hana said.
Woori also underlined its July-September earnings of 899.8 billion won, which were the highest for all third quarters, after it completed 23 years of government-led ownership and was fully privatized in December 2021 as the country's fourth-largest banking group
"We're pleased to prove our competence through the highest gains in any third quarter," the company said, noting it will strengthen risk management in the remainder of the year as well as in 2023.
![[INTERVIEW] North Korean defectors bear brunt of remittance scams](https://img.koreatimes.co.kr/upload/thumbnailV2/75c261156ac7415fad92dc1d7c1b30cf.jpg/dims/resize/178/optimize)
![[INTERVIEW] Foreign-born entertainers seek to revolutionize local industry](https://img.koreatimes.co.kr/upload/thumbnailV2/4a6b2bd3d23044d699dee3c5bb956863.jpg/dims/resize/178/optimize)
